SB 17-210

Senate Bill 17-210, which has been signed into law in Colorado, addresses a situation where car manufacturers or distributors issue "stop-sale" directives for used vehicles. This means they tell dealers not to sell certain cars because of potential issues. If the manufacturer doesn't provide a fix within 90 days, they must pay the dealer one percent of the wholesale value per month until the vehicle is sold or fixed. The law applies to dealers who have an active agreement with the manufacturers for that specific brand and have the car in their inventory when the stop-sale directive is issued. This protects dealers from financial losses due to manufacturer delays in addressing issues with used vehicles.

Official Summary

The bill requires the manufacturer or distributor to reimburse a motor vehicle dealer for any stop-sale directive from 90 days after the directive is issued until the vehicle is sold or a repair solution is provided. The reimbursement rate is one percent of the wholesale value per month. The duty to reimburse occurs when: The motor vehicle is a used motor vehicle; The motor vehicle dealer holds an active sales, service, and parts agreement with the manufacturer or distributor for the line-make of the used motor vehicle; The motor vehicle is in the motor vehicle dealer's inventory when the stop-sale directive is issued; and The manufacturer or distributor does not provide a remedy procedure or make a part available to repair the used motor vehicle for more than 90 days after the stop-sale directive is issued.(Note: This summary applies to this bill as introduced.)

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