Home » Colorado Is Secretly Banning Tiny Japanese Cars And Leaving Enthusiasts With Paperweights

Colorado Is Secretly Banning Tiny Japanese Cars And Leaving Enthusiasts With Paperweights

Colorado Kei Ban 031725 Ts
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Back in December, the state of Colorado proposed a full assault on oddball enthusiast vehicles. A new DMV rule would have banned not just adorable Kei cars from Japan, but golf carts and all vintage surplus military vehicles from classic Jeeps to Humvees. The proposed ban was a total one, too. If passed, the ban would have not only removed these vehicles from the road, but would have made them illegal to use off-road, too. Enthusiasts successfully beat the proposal, but the state is still trying to ban their cars in secret. Now, enthusiasts are fighting back.

Back in the summer of 2021, the state of Maine launched what is currently the worst car ban in America. The state passed a law to change the classification of what can be considered to be a road vehicle. As of that summer, the state of Maine now says that any vehicle not built to Federal Motor Vehicle Safety Standards (FMVSS) will be barred from public roads. Practically overnight, all sorts of gray-market cars from Euro-spec BMW wagons to big 4×4 Mitsubishi vans were re-classified as off-road vehicles. Legally, anything without an FMVSS sticker cannot be registered for road use in Maine.

Vidframe Min Top
Vidframe Min Bottom

Maine passing this as a law has thus far prevented enthusiasts from overturning the ban. As I have reported in the past, Maine did this based on guidance issued by the American Association of Motor Vehicle Administrators (AAMVA). The organization is a non-governmental, non-profit lobbying organization composed of motor vehicle and law enforcement administrators and executives from all 50 states, Washington D.C., Canada, Mexico, and the Virgin Islands. Its core goal is to motivate the states to standardize driving laws across America.

Honda Today 1996 Pictures 1
Honda

AAMVA does not have the power to create policy, but the people who run it do. The organization first recommended the banning of mini-trucks speed-limited to 25 mph back in 2011, based partly on crash testing conducted by the Insurance Institute for Highway Safety. Somewhere along the way, AAMVA decided to attack all gray-market imported cars. Many of those vehicles were Kei vehicles, which are just as small as off-road-only mini trucks, but built for road use. In 2021, AAMVA decided to come down on anything not built to FMVSS specs, but specifically targeted Keis.

Maine’s Director of Vehicle Services co-authored the 2021 guidance that has led to bans stretching the Eastern Seaboard. In the time since Maine announced its ban, Rhode Island, New York, Pennsylvania, Georgia, Massachusetts, Texas, Virginia, and Michigan have each imposed their own restrictions on vehicles imported for road use. However, most of these states only made DMV policy changes that reinterpreted existing laws and targeted only cars in Japan’s smallest class of road-legal cars, the Keis.

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Update: According to a Maine reader, while Maine has a ban on its books, apparently the state is quite terrible at enforcing it, which is great. This mirrors what happened in Rhode Island when the state initially banned a bunch of cars and then sort of forgot to keep enforcing its ban.

Since 2021, enthusiasts have successfully overturned bans in Texas, Massachusetts, and Michigan. All three of those wins came in 2024 and suggested that car enthusiasts turning the tides against AAMVA. Then Colorado tried to end the year with a total Kei ban.

Colorado’s Hard Ban

1994 Subaru Vivio Gx T
Subaru

If you’re interested in reading all of the legalese, click here to read my previous coverage. But what you need to know is that Colorado’s proposal was frightening in its scope. Here’s what it said about Kei vehicles:

The Department will not title or register Kei vehicles or mini trucks for on- or off- highway use.

Based on my research, Colorado officially banned historic military vehicles from on-road and OHV use in 2019, but hadn’t fully gotten around to implementing the legislation. In December, the state wanted to make sure that was all tidied up:

The Department will not title or register Military Vehicles built for Foreign Armed Forces or Historical Military Vehicles for on- or off-highway use.

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Jeep

Curiously, Colorado felt the need to clarify for a second time that an old military vehicle cannot be used as an OHV:

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Historical Military Vehicles do not qualify as Off-Highway Vehicles, pursuant to 42-6-102(11.5)(b)(I)(C), C.R.S.

However the state did acknowledge that emergency services might operate surplus military vehicles, so Colorado carved out an exception for them. Before the state was finished, it also took a swipe at kit cars:

In order to be titled and registered for on-highway use, a Kit Vehicle must also meet the definition of Motor Vehicle in section 42-6-102 C.R.S.; which means they must be designed primarily for travel on the public highway and are generally and commonly used to transport persons and property over the public highways in the United States.

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Factory Five Racing

Then it considered that there might be other weird vehicles that might slip through the cracks of the ban, so it wanted to figure that out, too:

The Unconventional Vehicles Working Group (UVWG) will review Unconventional Vehicles for eligibility for on- and off-highway titles and registration, pursuant to Article 6 of Title 42.

While Colorado wasn’t changing any laws like Maine did, if enacted, it somehow found a harsher way to implement its ban. Maine at least lets you drive your Subaru Sambar off-road. Colorado is essentially saying, “Too bad, you now own a paperweight.”

Thankfully, enthusiasts in Colorado banded together and used the winning strategies pioneered by enthusiasts in Texas, Massachusetts, and Michigan. They educated their lawmakers and successfully convinced the Colorado DMV to reverse its course. The state officially canceled the changes to its policy, technically allowing the registration of these vehicles. But it’s not over yet; according to a recent report by Colorado Public Radio (CPR), the state hasn’t stopped trying to do its ban. Instead, it’s just doing it quietly.

Colorado Won’t Leave The Keis Alone

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Cars & BIds Seller

According to CPR, enthusiasts are still reporting that they’re not being allowed to register or emissions test their vehicles. The effect of this is that the state is running out the clock on the registrations of Kei vehicles. This makes the cars illegal to drive since the owners cannot renew their registrations without a valid emissions test. The state also refuses to give these vehicles OHV registration, so they’re effectively banned from roads – again, car-sized paperweights.

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CPR spoke with one Colorado JDM owner, Ryan Albarelli, who told a frustrating story about being able to register a 1990 Honda Acty, but the state subsequently refused to emissions test it. Other folks online report similar stories.

Sadly, this strategy of a quiet ban isn’t anything new with Colorado. Enthusiasts in some counties haven’t been able to register Kei vehicles for a long time. Others who did get registrations haven’t been able to emissions test their vehicles, which meant they eventually became illegal to drive even if registered. Enthusiasts have been calling this a “shadow ban” since the state doesn’t have anything official noting the ban.

Mercedes Streeter

This huge headache is actually the very reason I got a 2005 Smart Fortwo (above) entirely for free in 2017. The 2005 Smart Fortwo is technically one of the cars exempt from the infamous “25-Year-Rule” because some importers went through the work to federalize the first-generation Smart Fortwo. However, some first-generation Smart owners have issues with emissions tests in their state. The previous owner of my car got fed up with Colorado’s system and just gave the car away.

The problem, CPR notes, is that all of these vehicles are neither explicitly illegal nor legal in Colorado. Instead, they sit in a sort of legal limbo where individual DMV offices are making the decision whether to register a car or not.

In an effort to solve this once and for all, HB25-1281 Title Register & Drive Kei Vehicles was introduced into the Colorado house on February 20. The prime sponsors of the bill are Rep. William Lindstedt – D, Rep. Larry Don Suckla – R, Sen. Nick Hinrichsen – D, and Sen. Byron Pelton – R. This bill, which has passed HOU Transportation, Housing & Local Government committee, is one of those rare glorious moments of bipartisanship.

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Honda

You can click here to read the bill in full if you want, but the legislators have provided a handy summary:

Kei vehicles are small, imported cars that are at least 25 years old and have a top speed of approximately 55 miles per hour (mph). Starting July 1, 2027, the bill adds kei vehicles to the definition of a motor vehicle, requiring them to be registered, titled, and to follow traffic laws. They must undergo emissions testing, but cannot be tested using a dynamometer; instead, they must pass a two-speed idle test based on the emissions standards of their manufacturing year. The bill also prevents the Department of Revenue (DOR) and the Colorado State Patrol (CSP) from requiring additional inspections solely because a vehicle is a kei vehicle or from deeming them not roadworthy based on design alone.

The bill prohibits kei vehicles from operating on roads with speed limits above 55 mph or on limited-access highways. The bill creates a new class B traffic infraction of driving a kei vehicle on a road with speed limits above 55 mph or on a limited-access highway.

The National Highway Traffic Safety Administration (NHTSA) ensures that vehicles meet minimum federal safety and equipment standards. Under federal law, any vehicle designed to exceed 20 mph is classified as a motor vehicle. However, NHTSA does not currently certify kei vehicles for road use because they do not meet these federal safety and equipment requirements.

The Imported Vehicle Safety Compliance Act of 1988 allows vehicles over 25 years old to be imported even if they do not meet NHTSA’s safety standards. These vehicles are classified as “classic” and are exempt from the federal safety regulations that apply to newer imported vehicles. Imported kei vehicles that are over 21 years old and have their original engines are also exempt from current federal Environmental Protection Agency (EPA) motor vehicle emissions standards under the Clean Air Act.

These definitions seem more than fair to me. If passed, this would create a law that would treat Keis mostly similar to regular cars. They just wouldn’t be able to access an Interstate or similar. That’s pretty much how 125cc motorcycles are treated in most jurisdictions.

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Suzuki

The bill would also create a new class B traffic infraction for driving a Kei vehicle on a road faster than 55 mph. Proponents of the bill say that allowing Kei vehicles to use the road would add $25,000 to the state coffers in tax revenue in 2027 and another $68,000 in 2028, so officially legalizing Keis would be a good thing for the state’s budget. Proponents also say that the funds from allowing Keis can be used to fix roads. Likewise, the ticket revenue from catching Keis on Interstates can also be used to pad the budget as well.

Proponents of the bill do note that legalizing Keis will cost the state a one-time expenditure of $101,000. These costs will largely be incurred when reprogramming the state’s DMV and Department of Revenue computer systems to explicitly allow Keis. Other costs will be incurred because the DOR will want to issue every Kei vehicle a new 17-digit VIN so that the computers won’t freak out.

Sadly, this effort does not appear to change the uncertainty about classic military vehicles. Officially, the state says if you have a vintage Jeep you’re not supposed to be able to register it. If you happen to have an old military vehicle with plates, the state is instructing its offices not to renew those plates. That being said, it does appear that the harsher restrictions on kit cars would not be going forward.

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1998 Mitsubishi Pajero Mini 11c4
Bring A Trailer Seller

This is an issue that the state has attempted to solve in the past. In 2015 and 2016, bills were filed that, if passed, would have codified Kei vehicles into law. However, both bills failed. CPR reports that the Colorado Automobile Dealers Association and the Colorado State Patrol strongly opposed both bills. From CPR:

Both groups declined to comment on the coming bill from Hinrichsen. But Tim Jackson, former president and CEO of the Colorado Automobile Dealers Association, said the arguments against legalizing kei vehicles at the state level boil down to two issues: pollution and safety.

“It does set up a two-tier system on both emissions and safety, and I think it contradicts everything that Colorado as a state has been trying to do,” Jackson said, referencing Colorado’s various efforts to improve road safety and clean up the state’s dirty air. Older kei trucks, including Albarelli’s Honda, lack modern systems like fuel injection that lower emissions.

Yep, in this case, it wasn’t the expected UTV lobby fighting Keis, but car dealerships and cops. The state’s official stance is that the proposed rules from December weren’t necessary in the first place, from CPR:

Asked why the DMV proposed and then pulled the rule explicitly banning kei trucks, spokeswoman Jennifer Giambi said in an email that the rule “aimed to clarify existing state laws regarding vehicle classifications to ensure consistency and better understanding.”

“Kei Vehicles have never been eligible for on-highway title and registration in Colorado,” Giambi wrote, adding that the rule was pulled because it “was already covered by existing statutes.”

If you took this at face value, it’s basically the state admitting it wasted everyone’s time back in December. It also doesn’t explain why the state doesn’t have a public-facing policy regarding Kei vehicles.

The CPR report pointed out something else interesting in all of this. AAMVA rarely returns media requests. The organization has never returned correspondence from The Autopian and it looks like AAMVA has done the same to CPR.

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Honda

So all of this remains incredibly messy. But there are hopes about this latest bill. In addition to bipartisan support, the bill has gotten a thumbs up from Colorado Governor Jared Polis. According to CPR, Gov. Polis says he is “excited to expand consumer choice to affordable vehicles and looks forward to supporting kei freedom.” So it sounds like the bill just needs to get through the legislature to secure the rights of imported cars in Colorado.

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If you want to support Colorado’s bid to legalize imports, you can send comments to the state DMV by clicking here. You can also contact Colorado representatives and voice your support for more vehicle choice. Kei enthusiast Ryan Albarelli, one of the people who helped kick the proposed rules to the curb in December, has also founded an advocacy group, the Colorado Kei Advocates. At this time, the organization exists only on paper, but Albarelli is considering taking it further.

For now, Colorado enthusiasts are trying to educate any lawmaker who will listen about why Keis should be legal. Hopefully, they are successful. This bill joins one filed in Texas and if one or both of these pass, they will signal that AAMVA has gone too far. That would be good for every lover of former forbidden fruit cars.

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GhosnInABox
GhosnInABox
4 hours ago

I smell a conspiracy here, frankly. Both the NADA and automakers have powerful sway in our government. The last thing they want is an option for people to acquire affordable transportation without them getting a taste. These states must have some kind of legislative vulnerability.

This nation would be a better place if everyone drove Honda Actys instead of F150s.

MrLM002
MrLM002
4 hours ago

A state that like banning things illogically bans another group of things illogically? Color me shocked!

Cerberus
Cerberus
5 hours ago

Yeah, I’m sure they’re very concerned about emissions of a low number of 660cc engines that will be driven infrequently coming from a country with good emission standards, much lower fleet mileage, and better inspection requirements vs a country packed with overpowered wheeled hippos, widely varying state inspections, and morons who think climate change is a hoax.

Prizm GSi
Prizm GSi
6 hours ago

I don’t think that it’s just ‘freeways’ that will be off-limits – plenty of two lane highways have speed limits higher than 55. This may make it so you could never leave the city.

1978fiatspyderfan
1978fiatspyderfan
6 hours ago

I’m thinking if I own a WWII tank and decide to drive it on the road in Colorado it would take an Colorado Mountie with stones as big as Chuck Norris to pull me over. And then even Chuck would be less than Heroic with a tank barrel pointed at him.
But really if they are technically legal but the state does not allow a process to register them drive them fight the tickets in every Colorado court as illegal as the vehicle is legal but state will not provide the process to register them

Sam Morse
Sam Morse
15 minutes ago

It’s pretty easy to own a tank.
Most people that own them don’t have a license for the breach mechanism because the paperwork is nightmarish.
They are often set up for black powder for show.

M SV
M SV
6 hours ago

Colorado has been ripe for outside groups lobbying for stupid ideas and some how getting them passed. Someone really needs to get the lobbiest in check.

Al Camino
Al Camino
6 hours ago

Who funds the AAMVA?

UnseenCat
UnseenCat
5 hours ago
Reply to  Al Camino

Much of their funding probably comes from fees collected from all 50 states as part of AAMVA’s appointment as the administrator of the nationwide CDL (Commercial Driver License) system. That’s a big part of their original purpose. (And the only part of AAMVA worth having.)

But they also have their political and regulatory lobbying arm which is what’s behind these kinds of legislative shenanigans. That likely runs on donations… which are alleged to come in large amounts from the off-road recreational vehicle industry, insurance groups, automobile dealers’ associations, and just about anybody with an axe to grind over car culture that doesn’t fit within their profit objectives and/or views on what people just should or shouldn’t be allowed to drive. But they’re a non-governmental, non-public, non-profit organization, and they don’t have to disclose all their sources of income and/or donations. Nice for them, eh?

Al Camino
Al Camino
4 hours ago
Reply to  UnseenCat

Thank you very much!

Sam Morse
Sam Morse
31 minutes ago
Reply to  UnseenCat

If they are a lobby and a regulatory group, a legal attack on ethical grounds would be rock solid.

Squirrelmaster
Squirrelmaster
6 hours ago

As a Coloradan, I’ll vote for this if it ever makes it to a vote. The emissions issue is really only a problem for the counties that cover the greater Denver area, as the rest of the state doesn’t have emissions testing, but it is still a silly issue. I’m still salty about the military Jeeps more than the kei cars, but I doubt that will ever get corrected since there isn’t an influx of WWII-era Jeeps at the same level as that of kei cars.

Cheap Bastard
Cheap Bastard
6 hours ago

Tim Jackson, former president and CEO of the Colorado Automobile Dealers Association, said the arguments against legalizing kei vehicles at the state level boil down to two issues: pollution and safety.

So Tim if you are so concerned about safety how about not selling giant people crushing pickups and SUVs? And on emissions why aren’t you trying to ban motorcycles too?

Last edited 6 hours ago by Cheap Bastard
Jon L
Jon L
5 hours ago
Reply to  Cheap Bastard

So long as I can carry my young kids in my motorcycle sidecar the safety argument will continue to be total BS. This is about used car dealers wanting money, simple as that.

Cheap Bastard
Cheap Bastard
32 minutes ago
Reply to  Jon L

If they want money selling used cars open a used Kei dealership.

Dogpatch
Dogpatch
2 hours ago
Reply to  Cheap Bastard

Or airplanes….

Cheap Bastard
Cheap Bastard
31 minutes ago
Reply to  Dogpatch

Those too.

Howie
Howie
6 hours ago

I would say- “why shouldn’t they be legal if they pass a sniffer test”. Motorcycles aren’t really safe either. If my vehicle wasn’t up to highway traffic I wouldn’t drive there. Tractors are excluded. DPW tractors are too.

Vetatur Fumare
Vetatur Fumare
7 hours ago

Only kei trucks have top speeds as low as 55mph. But I guess this is better than the alternative.

JumboG
JumboG
8 hours ago

How do the Colorado DMV computers handle pre-1981 cars that don’t have a 17 digit VIN?

Jdoubledub
Jdoubledub
8 hours ago

How exactly does emissions testing work in Colorado? Is there a particular number they need to hit on the sniffer test or is it just a check that the OBD system has no faults situation?

Brandon Forbes
Brandon Forbes
6 hours ago
Reply to  Jdoubledub

Utah had sniffer standards that vary based on the year for anything not equipped with OBD II, I would imagine most states are similar.

M SV
M SV
6 hours ago
Reply to  Jdoubledub

They seem to have the antiquated California junk sniffer and rolling road. Not sure how they do diesel emissions seem to be based primarily in diesel shops.

Captain Avatar
Captain Avatar
8 hours ago

“As of that summer, the state of Maine now says that any vehicle not built to Federal Motor Vehicle Safety Standards (FMVSS) will be barred from public roads.”

Doesn’t that also effectively make any classic or antique vehicle from before (*checks notes*) 1967 unable to be registered, even a classic/antique vehicle? They would pre-date the FMVSS.

And if you can’t register it, does that mean its not able to be insured unless its some sort of museum piece?

Last edited 8 hours ago by Captain Avatar
Eggsalad
Eggsalad
7 hours ago
Reply to  Captain Avatar

Yes, this. We’d like to know if any Maine owners of a 1965 Studebaker or Ford has been banned from renewing their registration. Do we have any Mainers here?

EmotionalSupportBMW
EmotionalSupportBMW
6 hours ago
Reply to  Eggsalad

Mainer here. No no-one has. This law actually isn’t really enforced in any meaningful way. Like you still see Kei cars, imports, what have you with plates. I have a neighbor who’s got an Austin or something British from the 30’s with collectors. My other neighbor has a freakin m211, don’t know why, plated. There’s even that RHDGuys podcast in I think Winslow, or somewhere around Augusta. And they have an R32 with Maine Vet Plates on it. Maine is let’s say a unique place, laws are just collectively ignored. Like during covid, we just decided to start ignoring stickers. And haven’t gone back. The only thing I’ve heard of as an actual effect from this law, is every Delica at the time had its registration pulled. And you can register the car with the import paperwork, unless it came from Canada. So, say if you bought a S15 from Quebec, the town office would highly likely plate it. Might get flagged at the BMV, but most people register at the town office.

Ranwhenparked
Ranwhenparked
7 hours ago
Reply to  Captain Avatar

Yes, technically it does

If you want to get more technical, 25+ year old foreign market vehicles actually do meet Federal Motor Vehicle Safety Standards, because those standards are created by NHTSA, and NHTSA has said that imported classic vehicles are exempt from those standards – that exemption is a federal standard. So the federal rule is they don’t have to meet federal rules

LTDScott
LTDScott
8 hours ago

My friend and legendary auto journalist Murilee Martin lives in Colorado and owns a Subaru Sambar kei van. Wouldn’t be surprised if we hear more about this from him in the near future.

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