Lemons are not a fruit.

The smell of lemons can really get you going in the morning. Their intoxicating aroma is more than powerful it's breathtaking. There's just something about the blue smoke that bellows from an old car that just knocks you off your feet and makes you feel short of breath. These varying effects probably have something to do with the pollutant-oxygen ratio of the air that you're breathing in as the car passes. On the other hand, it could be that an old oil burning automobile brings back sweet memories of the first car you ever owned or in some cases arouses an image of the next car you plan to buy which in turn makes you nothing less than dreamy at the sight of one.

Luckily, I've never had the experience of owning a lemon. I avoided that problem all together by inheriting my mother's old Toyota Camry and it's done a great job of getting me where I need to go. However, other members of my family have not been so fortunate. My older cousin has already gone through two cars during the span of his driving career which has only lasted about three and half years. The first car he bought was a grey Honda Civic and was the cornerstone example for the definition of a lemon. It's at this point that we encounter the economic problem known as "The Market for Lemons" which was first analyzed by George A. Akerlof.

The theory points out the obvious problems with lemons in the market for used cars. Not only do lemons cause consumers to quesiton the quality of all used cars, but they also forces sellers to lower prices because of uncertainity amoung consumers. My cousin is a prime example of a consumer who suffered from this problem of adverse selection. When he bought the Honda Civic he wasn't exactly sure of it's quality the car appeared fine and because he bought it from a local dealership he felt its quality could be assured. Over the next several months, the Honda Civic visited the shop several times. Eventually, my cousin decided the car was too much of a hassel and put it up for sale. He wanted approximately 2400 dollars for the car; however, he only recieved a mere 1800 dollars after he finally sold it. Sadly, my cousin suffered because he bought a lemon and the problem seems to be universal with all used cars.

So, now that you have a grasp of how lemons affect our market for the buying and selling of used cars, try and stay away from them if at all possible and reduce your suffering. Some people might love their 1990 Plymouth Acclaim that they bought from a strange man in Lexington, but no one loves losing money. If you need help making sure you're not buying a lemon the next time you buy a car, there are people who can help you. You can start by buying a car from a reputable company like CarMax that puts their cars through a 21-point inspection. Asking a mechanic for his evaluation also might be a good start or you can read Lemon-Aid. If you're really lucky you might even live in state that protects consumers against lemons, and I can only describe myself as jealous if you do.