Final answer:
The biggest risk to Parts Unlimited is selling a "lemon" car, which could damage the dealer's reputation and result in profit loss. Marvin should balance his appetite for risk with the potential headaches of unanticipated trips to the repair shop.
Step-by-step explanation:
The biggest risk to Parts Unlimited is the potential of selling a "lemon" car. A "lemon" refers to a defective or poorly performing vehicle, which can quickly damage the dealer's reputation and result in long-term profit loss. While cheaper used cars can be found on less established lots, the buyer takes on more risk as the dealer's reputation has less at stake. The highest risk is associated with buying the cheapest cars on platforms like Craigslist, where individual sellers have no reputation to defend.
Therefore, Marvin should carefully consider the balance between his appetite for risk and the potential headaches and financial losses from unanticipated trips to the repair shop. He should weigh the cheaper prices offered against the increased risk associated with these transactions.