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Answer :
Final answer:
Vehicles need to be rental ready and damage free for resale to uphold the dealer's reputation, ensure vehicle reliability, and command fair market prices. Not meeting these standards can lead to increased risk and potential repair costs for buyers.
Explanation:
Vehicles must be rental ready and damage free when they go to remarketing to be sold because it helps in maintaining a trustworthy reputation for dealerships. Rental ready vehicles signify to customers that the car is in a condition that meets certain standards of quality and safety. Providing damage-free vehicles not only demonstrates reliability but also ensures that the dealer can demand a fair price. Reputable dealers often invest in repairs and maintenance to prevent the sale of 'lemons'—defective cars which could destroy their reputation and lead to long-term profit loss. On the contrary, vehicles sold on less-established lots or through platforms like Craigslist might be priced lower, but they carry a higher risk as those sellers typically have less at stake concerning their reputation.
When vehicles are not prepared to meet these standards, it might lead to reduced prices and increased risk for buyers. Such purchases could result in more frequent and unexpected repair costs, which are potential headaches Marvin should consider when balancing his risk appetite against saving on upfront costs.
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