Soar in complaints about lemons
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For most people a lemon is a yellow oval fruit with juicy acidic flesh. But for those well versed in information economics a lemon is a second hand car that turns out to have plenty of nasty surprises in store for its owner. Some 3.6 million used cars are bought each year in the UK, costing a total of £24bn and - as this BBC news article reports - the volume of post-sale complaints has soared in the last year. Perhaps the recession has led more people to look for a cheap used car as a way of saving money - if so they may be in for a shock since “hhe study found that many motorists ended up fixing problems with their new purchase themselves, at an estimated average cost of £425, when in fact they were the dealer’s obligation to correct.”
A few months ago Mo Tanweer produced a superb revision resource on information economics and here is the link
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