• Colorado car-buying laws protect those who buy lemons.lemon image by Aleksei Volkhonsky from Fotolia.com
  
  The state of Colorado has laws governing the purchase and sale of cars. These laws apply to both parties of the transaction. Those purchasing a car should acquaint themselves with relevant state law. This will allow buyers to be prepared before setting foot on the lot. Ignorance of Colorado car-buying laws opens the consumer up to being exploited by unscrupulous car dealers in the state. Knowledge of the law is the best defense.
  
  

New Lemons

• Like many other states, Colorado has a lemon law that protects consumers. Colorado's lemon law applies directly to the purchase of new cars. Consumers have up to one year to get a dealer to make repairs to a car. Repairs must be made in any area where the delivered car fails to live up to the manufacturer's warranty. Failing proper repair of the car after "a reasonable number of attempts," the dealer must replace the vehicle or make a full refund to the consumer, including title, taxes and fees. A "reasonable number of attempts" to repair the car means the dealer has tried at least four times in one year to repair the same mechanical defect on the car or has spent 30 days or more trying to repair the car.
  
  

Used Lemons

• The lemon law does not apply to the purchase of used cars, which are generally sold on an "as-is" basis. However, Coloradoans are not without recourse if they have purchased a used lemon. Colorado has an Unfair and Deceptive Practices Act that prohibits withholding pertinent information regarding used cars. Dealers must also abide by any verbal promises made through the course of a sale. Finally, the state's Truth in Lending Act may provide an avenue for recouping lost money.
  
  

Licensing

• Anyone who sells three or more cars for profit from the same address in one calendar year needs a license to sell cars. Someone who simply refers others to used cars does not need a license. Colorado law distinguishes between the two by saying that anyone who receives financial compensation from the sale of a vehicle needs a license.
  
  Unlicensed dealers are known as "curbstoners" and are not regulated by the Colorado Consumer Protection Act and the Colorado Motor Vehicle Dealer Board. Curbstoning is against the law and should be reported to the Auto Industry Division of the state's Department of Revenue.