Final answer:
Mr. Wormwood is known for adding dubious substances to cars to make them sell better. Marvin should understand that prices reflect the level of risk and a dealer's reputation, with higher prices at more reputable dealerships.
Step-by-step explanation:
Mr. Wormwood uses deceitful practices to make cars appear more functional and attractive to potential buyers. Considering Marvin's situation, he is facing a common dilemma in the used car market - the balance between cost and reliability. Dealers with a trustworthy reputation tend to sell used cars at higher prices because they fix underlying problems to maintain customers' trust and ensure long-term reliability of the vehicles they sell.
Such dealers avoid selling 'lemons' due to the potential damage to their reputation and the impact on long-term business. However, less established lots may offer cheaper used cars, where the buyer faces more risk due to the dealer having less reputation at stake.
The lowest prices, and hence the highest risk, can frequently be found on places like Craigslist, where sellers typically have no reputation to influence the purchase. To navigate the used car market wisely, Marvin must understand that imperfect information affects car prices and that sellers might hide vehicle problems to keep prices high.