EFFECTIVEColoradoAug 7, 2023✓ Human reviewed

Colorado tightened dealer warranty reimbursement protections

Colorado SB 23-078 changed the state's dealer warranty reimbursement law. Manufacturers must compensate dealers at the statutory retail labor rate and parts markup for covered warranty repairs, and a manufacturer contesting a dealer's submitted rates must base the challenge on material inaccuracy rather than simply pointing to different rates at similarly situated dealers.

dealer fixed opswarrantyrecalllabor rateparts markup
What to check

Colorado dealership service departments should review their warranty labor-rate and parts-markup submission procedures and manufacturer challenge notices against the current reimbursement statute.

Official evidence

Source and verification

Verified
Sep 21, 2026
Applies to
Dealership fixed ops
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