A Market for lemons- Used car market on OLX and Quikr

Buying a used car is absolute nightmare. Buying at a high price ensures that the nightmare continues for  long. So what to do.Where to find gems “under the hood” which will not send you running to the mechanic every week. You  must be wondering. How hard it can be. There are dealers and then there are used car portals. Something should work isn’t it.

Well dealers are out of question because they cheat. They buy low sell high and scam the meter. Some people vouch for “Maruti True value” but then they only sell Maruti cars. Internet portals like Olx and Quikr are no better because the sellers think that they are selling brand new cars which just happen to be a few years old. Hey, remember that a car that has been driven 28000 kms is not as good as new.  It is old and depreciated. If you are looking to sell it then expect the price of a old car. And another point. No one has any practical use for the low profile tyres that your under- age son fooled you to get into. Nor do we fancy custom paint job. We here looking for bargain and not to pay for your fetish with seat covers. You love your car but don’t expect us to pay for it.

"I agree, it's a lot of bang for the buck. And thumping, whining, clicking, clacking, clanging, grinding, buzzing and rattling."

Interestingly the market for used cars was covered by Noble Laureate George Akerlof titled the Market for Lemons. I  think he was trying to make a bigger point in his paper about information asymmetry ( which is fancy word for people are different information) but lets limit our discussion to used cars.  According to Akerlof  Buyers don’t buy high priced used cars because they are not sure of the quality of the car. Sellers who have good quality cars don’t sell at low prices and therefore price themselves out of the market. As a result only dodgy cars ( lemons) remain in the second hand car markets. So if you are looking for good second hand cars from dealers and online portals, don’t look. You are most likely to get a lemon. Remember the old adage- If you pay peanuts, you only get monkey or lemons.

Morale of the story: I’m looking for a used Skoda Yeti. If you have understood the blog and have Skoda Yeti to sell then do get in touch with me


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