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Colorado lemon laws leave used car buyers feeling stranded

“I’m afraid that there’s not enough recourse,” state lawmaker says
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Posted at 2:49 PM, May 20, 2023
and last updated 2023-05-20 23:42:28-04

DENVER — A push for a stronger automobile-lemon law in Colorado failed this legislative session, leaving some used-car buyers feeling stranded.

Daphne Adams thought she was supporting her daughter last October when she helped her buy a car last year. But it turned out that was just the start of what became a big headache.

Adams and her daughter Dwaneika bought a 2014 Kia Sportage from Davidsons Motors in Aurora. When they took possession of the car, the troubles started almost immediately.

Adams first complained about the car sputtering and Davidsons said they would fix the problem.

“They said it was the timing belt,” Adams said.

Davidsons eventually said they could not fix the car and sent it to Arapahoe Kia where it stayed for a month. A week after Adams got the car back, it was back in the shop for another month with more problems. Then, after having it back for roughly a month, Adams once again had to take it in due to bad wires, which would cost thousands of dollars to repair.

“That’s when it became the blame game,” Adams said, adding that Davidsons was blaming Arapahoe Kia for not catching the wiring problems earlier.

Not able to afford the repairs, the car was later deemed abandoned and repossessed. Now, she says she doesn’t want the car back, she wants her money back.

“I’m so frustrated,” Adams said.

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Adams’ horror story is not unique as protections for used car buyers in Colorado are minimal and can leave customers feeling stranded when they buy a “lemon” from a dealership.

“It’s kind of like a game,” said Matthew Osborne, a consumer law attorney who said he often hears from potential clients who bought a bad used car. “These cars that are damaged, they get passed around like a hot potato, and then eventually it gets sold to a consumer, and the dealership just says ‘well, we didn’t know. Try to prove otherwise.’”

Problem cars are often sold at dealer-only auctions, Osborne said, where dealers bid on hundreds of cars a day and immediately list them for sale on their lot.

“There should be a requirement that dealerships inspect their cars before they’re allowed to sell them to the public,” he said.

Taking a dealership to court and hiring an attorney is expensive. The so-called lemon law for defective cars only applies to new vehicles.

“You know, I’m afraid that there’s not enough recourse,” said Mike Weissman, a Democratic state representative who has pushed for changes to the Colorado Consumer Protection Act.

Colorado lemon laws leave used car buyers feeling stranded

The current act does punish deceptive business practices by covering attorney fees and awarding triple damages. But Colorado is one of only 10 states with a legal loophole that requires consumers to first prove that the public has been harmed. One person is not enough.

“It really defeats the purpose of that law to have lots of people already hurt by exactly the same problem that the law is trying to solve,” Weissman said.

Weissman’s proposal to change the law was struck down this legislative session amid pressure from lobbyists.

However, David Cardella, CEO of the Colorado Independent Automobile Dealers Association, said he believes Colorado is a consumer-friendly state. He says a dealer board already oversees the industry and dealers are required to disclose damage.

When asked if he believes that dealers actually disclose the damage, he said he would like to think so, but can’t say for certain. He added that requiring full inspections would raise the cost of used cars for consumers.

“Is it just a way for attorneys to make some money?” he said. “Or is it actually seeking restitution for a consumer?”

For Adams, after she reached out to Contact Denver7, Davidsons offered to give her another car in place of the one she originally bought, but she declined. The company later agreed to refund her deposit in full.

She is not the first to complain about this dealership. According to documents obtained by Contact Denver7 through an open records request, Davidsons Motors has had four complaints filed against them with the Colorado Department of Revenue within the past five years. Three of those complaints resulted in a warning letter.

Davisons would not agree to an on-camera interview but provided a statement that read in part, “Thousands of dollars were spent at the KIA dealership to repair all of the mechanical issues that we approved ... Although we were not obligated, we refunded her full deposit to compensate her for any type of inconvenience.” Read the full statement here.

Adams thought it was a small victory, but hopes more can be done in the future.

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