August 20, 2008
The Detroit News reports that GM is running short of cash. The dire financial straits have prompted 2 recent major announcements from the automaker.
First, GM is offering a new warranty for used cars under their certified-car program. This is a highly unusual move that you can benefit from. This bumper-to-bumper warranty is for 12 months/12,000 miles.
The second announcement concerns employee pricing on new vehicles. This is not a gimmick. It's a longstanding perk that's been enjoyed by the employees of many American automakers. Now it's being extended to the general public in the hopes that they'll buy more GM vehicles.
Now is the time for great deals -- unless you're seeking a highly coveted small car or a hybrid!
August 13, 2008
The Vehicle Affordability Index now shows that cars are the most affordable they've been since Jimmy Carter was president.
That's partly because of the intense competition in the car market that makes new vehicles a real deal at this point.
To arrive at this finding, researchers took the average income and figured out how many weeks you'd have to work to equal the average cost of a vehicle. The result? 23 weeks of work.
But here's the disturbing news: We're snatching defeat from the jaws of victory. First off, the average length of a loan is now 63 months, which is way too long. Second, repossessions have skyrocketed at all levels of car purchases -- partly because of the economic downturn.
42 months is the longest auto loan you should ever take out, according to Clark. If you can't afford the payment on a 42-month loan, then you need to buy a cheaper car. Paying cash upfront for a vehicle is always a good idea too.
Meanwhile, the price of used vehicles is down because there's too much supply. CarMax is among the major used-car sellers that's really taken it on the chin. So in addition to the great deals on new vehicles, there's never been a better time to buy a used car either. As always, remember to get a mechanic to carefully vet any used car before you actually buy it.
In related news, Clark recently read that an SUV purchased today will be worth a mere 30 cents on the dollar in 36 months. That's food for thought!
August 7, 2008
When it comes to research about reliable cars, there are two highly respected sources -- Consumer Reports and J.D. Power and Associates.
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August 4, 2008
If you're a longtime listener, you know that Clark has frequently bashed vehicle leasing. He's called it a recipe for financial disaster, and he's said it's only good if you like new wheels every few years or have a special factory-subsidized lease.
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July 9, 2008
Getting our country on a better footing with energy has been a longtime personal mission for Clark. Some of you may have heard about his 3-wheel car called the Freeway. This vehicle ran on a 12-horsepower Tecumseh engine and had no reverse gear!
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Complete list of Clark's Car Cost Tips
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