Final answer:
A car salesperson's advice on selecting a good used car is primarily aimed at making a sale. Prices at reputable dealer lots are usually higher due to efforts in maintaining reliability and reputation, while cars from lesser-known lots or individual sellers are cheaper but come with higher risk.
Step-by-step explanation:
When a car salesperson advises on how to distinguish between a good used car and a bad one, their primary goal is to facilitate a sale. Understanding that prices reflect information even with imperfect information is crucial for a prospective buyer like Marvin.
Price variations can often indicate the reputation of a dealer and the risk associated with purchasing from them. More expensive cars on reputable dealer lots may imply a commitment to rectifying any non-obvious issues and maintaining a trustworthy reputation, which in turn fosters good word-of-mouth and supports long-term reliability of the vehicles sold.
Conversely, lesser-known dealerships may offer cheaper cars but with a higher risk factor due to the dealer's reputation being less at stake. Individual sellers, particularly those on platforms such as Craigslist, might offer the lowest prices, but with the risk that the seller has no reputation to lose if there are undisclosed issues with the car. Thus, Marvin must balance his willingness to take on risk with the potential for future complications and unexpected repair costs.
The more issues disclosed by the seller, the lower the selling price will likely be, which is an important consideration in Marvin's decision-making process.