9/25/2005

"Storm Cars"

It's bad enough that there are people robbing those effected by Katrina, but now selling their water damaged cars? In the article i read it says that thousands of cars that were damaged by the hurricane are expected to re-enter the market in the next few months. While trying to sell these vehicles I'm sure the retailer will forget to mention to the unsuspecting customers that these were the cars that were under water just a few months earlier. I don't think this is honest, or ethical. These so called car salesman will go gather up these broken cars, fix them so they will run for a month, and rip off these innocent car buyers, all in the name of money.

12 comments:

Anonymous said...

Smile, You're on Photobucket
Bloggers Looking to Share Images Flock to Upstart Photo-Hosting Site By VAUHINI VARA THE WALL STREET JOURNAL ONLINE September 26, 2005 A year ago, relatively few people had heard of Photobucket.com. While the ...
Do you love Boxer Dogs? If so check out this site!
boxer dogs for sale
This site is about boxer dogs for sale related stuff.

Ann said...

Can you believe the dishonest people in the world? This is definitely a market failure. I know the motivation of our economic system is self-interest, but it fails the assumptions that people will behave rationally and that there is complete information between two parties. Something should definitely done about this. It may be time for the government to step in here.

Tyler said...

Most people are cautious about buying used vehicles; they research the vehicle by using outlets such as car fax and checking the title with the state. Stolen cars, junkyard cars, and cars destroyed by floods are stripped down and sold on the black market; this process is the same now as it has been in the past. It is our own responsibility to watch out for ourselves and increase the precautions towards used vehicles and parts.

Logan said...

I completely agree with Tyler, most inteligent people who purchase used cars do their research. Besides, what would be better for the economy, refurbishing and selling the flooded cars, or letting them set until thousands of our tax dollars are spent to dispose of them? I do think that it is unethical to lie about the cars history, but at the same time, something has to be done to clean up the area, and using the free-market system sounds good to me!

Bob said...

I think it makes sense to sell cars as long as they are inspected and run properly, but I do think that people shoud be made aware that the vehicles survived the hurricane and were under water for a period of time. Maybe they can offer to sell the cars at cost and give people an opportunity to get a new car at a cheap price without having to just get rid of them. You won't see me buying one, but I'm sure someone will.

Connor said...

Car salesmen have a bad reputation collectively, but who is to say that the majority of them will not tell the customer where exactly the car came from? Also, as a consumer, it is our responsibility to do our homework to find out the history of the car (even if it is brand new). The more direct your questions are to the salemen, the more direct his answers (legally) must be.

Nate said...

I don't agree with people making money off the refugees and victims of the hurricane, but if the car runs and passes inspection why not sell it? If you don't sell the car then what is going to happen to it? It will end up in a junkyard with nobody using it. Somebody may as well get good use out of it.

Dr. Tufte said...

-1 on Logan's comment for a spelling error.

Yes, there are fraudulent sales of flood damaged cars. But, did anyone stop to ask if the problem is worse with flood damage than with other sorts of damage? If there isn't any evidence of that, then this is a non-issue.

Used cars sales are also characterized by a problem known as adverse selection (which we will cover in an Aplia experiment later in the semester). Basically, they have a hard time getting people to believe them when they say they have a quality car, so people underbid on them. The result is that they refuse to sell a quality used car, and just wait until you overbid on a low quality one.

FWIW: My car was flooded up to the radio in New Orleans in 1995. My insurance covered repairs, and the car is still running, and is probably parked out by Administration right now.

Quit Smoking said...

Hi, I was looking around some blogger blogs for some ideas to start my own on ebooks and you have given me some great ideas. Good blog. I will check it out every week. Thanks

Anonymous said...

Help me Dude, I think I'm lost.

I was searching for Elvis and somehow ended up in your blog, but you know I'm sure I saw him in a car lot yesterday, which is really strange because the last time I saw him was in the supermarket.

No honest really, he was right there in front of me, next to the steaks singing "Love me Tender".

He said to me (his lip was only slightly curled) "Boy, you need to get yourself a shiny, new lcd tv to go with that blue suede sofa of yours.

But Elvis said I, In the Ghetto nobody has a lcd tv .

Dude I'm All Shook Up said Elvis. I think I'll have me another cheeseburger.

Then I'm gonna go round and see Michael Jackson and we're gonna watch that waaaay cool surfing scene in Apocalypse Now on the lcdtv in the back of my Hummer.

And then he just walked out of the supermarket singing. . .

"You give me love and consolation,
You give me strength to carry on "

Strange day or what? :-)

carter said...

Dr. Tufte brought up a point that there is definitely a market for these damaged cars. This could be a way for someone to get a good car cheap. I also see the fraudulent part of the deal and disagree with that, it just is not fair for the buyers.

Dr. Tufte said...

There is some internet buzz around that these cars were sold under false pretenses in Latin America, but I've never come across any concrete measurement of that.