used car market?Lemon market theory is that when information asymmetry occurs between sellers and buyers, buyers do not trust sellers, and as a result, sellers do not want to sell quality products, and as a result, mutual distrust between market quality and supply-demand increases. Let’s think about the atmosphere of the market where all sellers are scammers and buyers are considered to be all bad.
For example, when there are two seemingly similar products, it is assumed that the difference is different from each other unless you are an expert. It is assumed that sellers, who are relatively experts in the product, want to sell good items for 200 won and bad items for 100 won because they know the difference.
The problem is that consumers don’t really know which one is good or bad. If you trust the seller, you will pay as much as the seller calls, but when you don’t trust the seller at all, a defense mechanism that refuses to pay more than 150 won, the average of the two prices, works.
Then, again, the seller does not want to sell the 200 won product for 150 won, so only the problematic products worth 100 won will be offered to the market. Then again, the consumer guessed the fact and refused to pay more than 100 won, and the seller tried to sell the 80 won bill for 100 won again this time. This vicious cycle is repeated, and in the market, only objects of poor quality that are overestimated or not satisfied with their value are circulated.
Compared to Gresham’s law, there is only a difference that there is no value exchange fee recognized by everyone, which is an important condition, and the use of information asymmetry for the benefit of the seller is the same.
Used car price tag Unlike new cars with fixed prices and conditions, used cars have different conditions, and even experts cannot know their exact conditions.
Sellers usually know the history and problems of used cars they want to sell, but most buyers have serious information inequality that they have no way of knowing. In the worst-case scenario, the seller hides the accident or even manipulates the mileage.
According to the lemon market theory, the vicious cycle is repeated in which buyers do not want to pay more than a certain amount due to this risk, and sellers do not want to sell high-quality products even if they receive more than that amount as sellers do.
Automobiles belong to goods with high purchasing power of new products and a large drop in used prices (damaged losses). At the same time, the price is expensive. In general, you need to set a budget of 10 to 20 million won to buy a used car. There was even a saying that if you want to save money, you should buy a car at the end. Maintenance costs are also maintenance costs, but the price drops as soon as you buy them. In addition, it is much more complicated to make a choice because it is difficult for non-experts to determine the condition of the vehicle, and factors that can be directly related to life, such as meeting safety standards and whether safety devices are installed or not. There are many things to check in legal terms such as insurance, registration, sales contract, and management rules.
There is of course a used market that mainly deals with used books and used games, which has grown to the point of threatening the new market, but the used car market is very different from them. First of all, books and games are much cheaper than cars, and the content is more important than the material as long as they are guaranteed “quality to read or enjoy.”
In fact, most of the purposes of buying used books or games are simply reading and enjoying them. If you can read it, you often buy books just before abolition at a bargain price. Because you can just read it and throw it away (because it’s a bargain) or sell it again. In addition, used books and games do not require any professional knowledge to choose them and do not seriously distrust sellers, although there may be controversy over pricing. If there is no scarce value, transactions will be made within tens of thousands of won at most, and used games, book markets, and used car markets are completely different markets without safety involvement and fast disposal cycles.
According to the above lemon theory, when dealing with an incredible other party, you should become a vehicle expert and go to the trading place with someone who knows the vehicle well, whether you can notice the problem just by looking at the vehicle. But both are difficult. On top of that, no matter how carefully you look at the outside, it is difficult for even experts to accurately grasp the internal conditions of the vehicle, such as engines and electronic parts. In addition, the power department and convenience facilities are all different fields, so it is more difficult to grasp even if you take one expert with you. However, you can’t open all the cars whenever you trade used cars.
If you 중고차 시세표 buy a used car from an individual and buy it from a company, especially a specialized distribution company belonging to a large company, the price will be more expensive, but it is a little better because there is a guarantee system. For this reason, some luxury car makers purchase, manage, and sell their used cars on their own, so they can get relatively reliable used cars. However, it is more expensive than private sales because of the company’s guarantee and administrative expenses.
It’s good to buy a used car well, but if you buy a car wrong because you’re fooled and stressed throughout the operation, it’s good to take enough time to find out and buy it.