At a used car lot a nearly new car with only 2000 miles on, Ask an Expert

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At a used car lot, a nearly new car with only 2,000 miles on the odometer is selling for half the car's original price. The salesperson tells you that the car was "driven by a little old lady from Pasadena" who had it for two months and then decided that she "didn't like the color."

The sales person assures you that the car is in great shape and has had no major problems. What type of asymmetric information problem is present here? How can you get around the problem?

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Basic Finance, Finance

Category:- Basic Finance
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