getting a good deal on a used car is near impossible
Theoretically, and as predicted by a classic paper by Economics Nobel-winner George Akerlof, yes.
But practically, no. For various reasons the used-car market does not behave like the theory of asymmetric information predicts. Carried to its logical conclusion, the theory suggests the market won't exist at all -- and yet clearly it does! See the Wikipedia article for some discussion:
From personal experience: I've bought a couple used cars -- and always gotten great value. My sister and other members of my family have had success as well.
And plenty of personal-finance gurus will tell you that you should never buy a new car -- the premium over a reliable used-car is rarely justifiable, except on emotional/fashionable grounds.
Theoretically, and as predicted by a classic paper by Economics Nobel-winner George Akerlof, yes.
But practically, no. For various reasons the used-car market does not behave like the theory of asymmetric information predicts. Carried to its logical conclusion, the theory suggests the market won't exist at all -- and yet clearly it does! See the Wikipedia article for some discussion:
http://en.wikipedia.org/wiki/The_Market_for_Lemons
From personal experience: I've bought a couple used cars -- and always gotten great value. My sister and other members of my family have had success as well.
And plenty of personal-finance gurus will tell you that you should never buy a new car -- the premium over a reliable used-car is rarely justifiable, except on emotional/fashionable grounds.