We're in a unique car-buying cycle right now where it's actually cheaper to buy a new car in many cases than it is a used car. This runs counter to Clark's usual advice, which is to buy a two or three-year-old used car instead of a new one.

The Detroit News reports that buyers are paying the most they have in seven years for used cars. The average price of a three-year-old used car is now more than $19,200.

Why? Two reasons primarily: First, the Cash for Clunkers program soaked up a lot of excess inventory in the used-car market. Second, auto makers could not afford to push vehicles out into the market through leasing. That means there's less oversupply of two and three-year-old cars freshly out of lease for you to buy.

The result of both factors is that today you can buy new cars fully equipped at prices cheaper than $19,000. Many are around the $15,000 mark and others price out in the $17,000 range.

One word of warning. This is a temporary phenomenon. Do not take this as gospel for the future. In most instances, a used car will almost always be a better buy. Just not right now!

Finally, one segment where it's still smart to buy used is with high-end luxury cars. They're typically under corporate leases and have low mileage, making them smart buys.

It was during the spring of last year that Clark's typical mantra about buying used cars was first upset. At that time, auto manufacturers had oversupply of certain models and that forced them to offer great incentives to move new vehicles.

That trend has continued, making a unique situation where certain new cars are now smarter to own than their used counterparts.

Edmunds.com has compiled a list of such vehicles. As the website writes, "Because used/certified pre-owned cars are generally financed at a higher rate than new cars, a shopper can actually save money by purchasing a new vehicle instead of a used version in some cases."

Know that this is a true anomaly because of current market conditions. It does not reverse Clark's longstanding advice that, as a general rule, it's better to buy used than new.

Meanwhile, you may be seeing some TV commercials right now offering free maintenance on select luxury brands. Be very wary because not all programs are created equal. It doesn't matter what it says in the TV commercial. You've got to read the mice type.

The car business has not recovered as anticipated earlier this year. That means the advantage to you as a customer is intense...but only if you shop for a vehicle the Clark Smart way.

Now, the consumer champ is not encouraging you to take on an unreasonable obligation in the form of a car payment you can't afford. But if you have been considering a replacement vehicle, the opportunity for new car buying is wonderful right now.

Here are some pointers to keep in mind when you're getting ready to buy:

• Pre-qualify for money at a credit union, an online bank or (lastly) a traditional bank. The benefit to pre-qualifying is that you get a lower interest rate and a realistic idea of your purchase price point and monthly payment.

• Never finance your car through the dealership (as 80 percent of people do) and never finance it for longer than 42 months. If you can't afford the new car you want in 42 months, consider buying a used model.

• Look through Consumer Reports' annual April auto issue and stick to their recommended vehicle picks.

• Shop online and reach a deal online -- not in the dealership. Visit CarsDirect.com and Overstock.com to get an instant price quote for the car you want with the equipment and color you want. Overstock.com sends you to a local dealer who will honor the quote. CarsDirect.com will sell you the car themselves. With Overstock.com, you also have the option to have the car delivered right to you without ever setting foot in a dealership.

• Warehouse clubs also have car-buying programs with set prices. These are all great "no games, no gimmicks" options for car buying.

The Kansas City Star reports truck sales have jumped 25 percent over the last few months. In fact, the full size truck segment is now growing quicker than the car market for the first time in three years, according to Edmunds.com.

Buying, as you know, goes in cycles. There's a huge marketing push behind getting more people into small cars right now. Yet the sentiment in the marketplace has moved back to larger vehicles like trucks.

That means there's a true opportunity here with small cars being a real deal, both new and used.

In addition, there are special artificial pressures that mean small cars will remain a deal for years to come. As previously reported, a new federal mandate will drive what's called corporate average fuel economy (CAFE) up to 35 mpg across automakers over the next several years.

Now, the only real strategy to do that is to use less sheet metal. But Americans prefer bigger vehicles -- even as automakers have to get people into smaller vehicles. So the only way to bend that supply-demand curve is to discount small cars!

In related news, there has been a recall of Honda Odyssey and Element mini-vans from 2007 and 2008 because of brake problems. Visit Recalls.Honda.com for more information.

More than any other two automakers, Honda and Toyota trade customers back and forth all the time. Together, they account for about 26 or 27 percent of the entire car market. No surprise then that just last month, Clark was saying that the real beneficiary of Toyota's troubles would naturally be Honda.

Well, now the consumer champ has to recant that statement completely.

Here's why: Toyota faced a huge drop in market share following their sudden acceleration issues. So they responded by dramatically lowering prices. Practically overnight, Toyotas became so much cheaper when someone went looking for a car and compared the Honda Accord vs. the Toyota Camry (or the Honda CRV vs. the Toyota Rav 4 or the Honda Odyssey vs. the Toyota Sienna).

The Japanese nameplate's deep discounting worked. Toyota's market share has now climbed back up to where it was before their fall! And the flip side of the equation is that Honda sales have declined by an enormous amount.

So now Honda is rolling out all kinds of sales -- including amazing leases -- as part of their Really Big Thing sales event. Visit Honda.com for further details.

Typically, a lease is a flawed, defective way to get into a car. But these new Honda leases are so heavily subsidized that they are a real deal. One key bit of advice: Stick to leasing terms of 36,000 miles over three years. Any longer than that and you're doing yourself financial harm.

Look for a ripple effect among other Japanese brands like Nissan, as they seek to offer matching deals over the next week or two.

In spite of these Honda deals, if your car runs just fine, resist the temptation to get into a new car and keep driving what you've already got.

Are you among those investors who ran to bond funds for safe harbor when the stock market went topsy-turvy? Those who did so generally saw nice rewards from making the move. But there is a hidden danger that Clark wants to make you aware of.

When interest rates rise, the value of your bonds will fall. In some cases, the value may fall by enormous amounts.

Let's say you put $100 into bonds earning three percent, and then the interest rate rises to four percent. Suddenly, when you want to sell, you have to sell at a discount so that the new buyer earns the equivalent of four percent.

Thankfully, there are two ways to lessen this risk:

• Trade down from long-term bonds to short-term bonds.
• If you're really worried about inflation, put money in Treasury Inflation-Protected Securities (TIPS).

Auto-buyers have lost all brand loyalty when they go to purchase a new vehicle, according to CNW Research.

Historically, it was almost a given that people would buy the brand they were already driving. Yet only one in five shoppers this past year replaced a vehicle with the same brand they previously had in their driveway. This is an unprecedented development.

Our loyalty to a particular nameplate has been broken. People want the best deal and the best vehicle for their money. This has been a disastrous development for auto marketers. The Detroit newspapers report that manufacturers are putting the blame on their ad agencies and firing them. But the real problem is that the market is too competitive and the quality of vehicles too good.

That's turned us into free agents with shifting allegiances. Our free agency puts continuing pressure on manufacturers to keep delivering quality vehicles at affordable prices.

But remember, you must be a non-emotional shopper and do your homework. Follow our step-by-step guide for tips. And be sure to consider multiple models from multiple brands to suss out the best deal.

Opportunity beckons in the car market. New data for September 2009 -- the most recent full reporting month -- shows that sales fell off a cliff in the aftermath of Cash for Clunkers.

Clark watches car prices continually and has noticed that they're starting to soften. During Clunkers, prices actually went up, but that trend has now reversed. The artificial stimulus of Clunkers is gone and now the marketplace has a collective hangover!

Dealers went from round-the-clock business to have nothing to do. Manufacturers put the factories back to work and now they've got to move that inventory. In addition, we're moving into a time of the calendar year when no one is interested in buying a new car.

As previously reported, the consumer champ had predicted that there would be a rough 60-day sweet spot in the market from just before Thanksgiving to just after the New Year. The new September stats now corroborate this.

The used car market is still disrupted from Clunkers. We're still short of inventory. After all, you can't just make used cars!

The result is that used cars will bring in more money at trade-in or if you sell it on your own, and your new car will be cheaper. All because of the market disruption of Cash for Clunkers.

Clark can't think of another time ever when he could say that new car prices are depressed at time that used car prices have firmed up. Of course, this will only be a temporary phenomenon.

Having said all that, should you be buying a car? That's the ultimate question. Just because something is a deal, it doesn't mean you should necessarily buy it. The true test comes when you honestly gauge your own financial situation and the reliability of your existing car. Getting new wheels simply because you want them is not a smart move unless you're in good financial shape.

If Cash for Clunkers was designed to help U.S. automakers work off excess supply, it's been a grand slam success. However, it's been more of mixed bag for dealerships.

Many dealers got a huge increase in sales. But those that were thinly capitalized now find themselves hurting as they wait for reimbursements from the federal government. In fact, GM has had to extend interest-free loans to certain car dealers so they can stay in business.

Now the Cash for Clunkers program will end on Monday. It was originally supposed to last until around Thanksgiving. This is now the second time the program ran out of money. The original billion went in a week. An emergency allocation of $2 billion lasted a little longer and is now gone.

Where does the overall car market stand in the aftermath of Clunkers? Right now, the manufacturers have lean inventories and will likely overshoot on production as they ramp up to build new vehicles. Couple that with the continuing weak economy and Clark thinks the next sweet spot for new car buyers will come from Thanksgiving until Jan. 31, 2010.

Our nation used to sell 17 million new cars a year. Now it's more like 9.5-10.5 million annually.

One of the other effects of the Clunkers program has been that the value of used cars has gone up, especially in the $6,000 or lower category. We're experiencing a shortage of these so-called "beater" vehicles, which drives their price up. Yet as the used car market replenishes with more beaters, their price will soften too.

The Cash for Clunkers program has already spawned its fair share of potential rip-offs online.

Unofficial websites are masquerading as the official Cash for Clunkers portal, according to an Associated Press report. These bogus sites will solicit personal information such as your Social Security number for supposed pre-registration…and then turn around and use it to steal your identity or money.

For those of you who may be unfamiliar, Cash for Clunkers is a new federal program offering rebates of up to $4,500 for trade-ins when you purchase a newer fuel-efficient vehicle.

The "cash for clunkers" program is taking form and promises rebates of $3,500 or $4,500 for trade-ins when you purchase a newer fuel-efficient vehicle.

The effective date for the program -- officially known as the Car Allowance Rebate System (CARS) -- has not yet been set. But Clark expects it to be sometime toward the end of July or the beginning of August. There should be a 2-month buying opportunity through October.

Let's say you start from a baseline of 18 mpg on your current vehicle. If the new car you intend to buy gets 22 mpg or more, then you'd get the $3,500 voucher toward the purchase.

Please note that participating dealers will apply this taxpayer-subsidized credit directly to your purchase.

You're only eligible for the full $4,500 voucher if your next purchase gives you at least 10 mpg more than your old vehicle.

Meanwhile, there's a lower threshold for SUVs and trucks. You'll get the $3,500 voucher if your new vehicle get 2 mpg or higher. If it gets 5 mpg or more, you then get the $4,500 voucher.

The vehicle you're trading in has to be drivable and the dealer has to agree to crush it. There are also several rules to prevent abuse of the program. For example, the car you're dumping has to have been registered and insured continuously for at least 12 months prior.

Other countries that have experience with similar programs saw an immediate big increase in sales as a direct result of the program. That's the hope for the American auto market too.

Remember, of course, that there are still some great deals on vehicles available regardless of the "cash for clunkers" program. The more shopping you do, the better the price you will get. See Clark's tips for buying a new car.

The deals on new cars are undeniably amazing because of vast oversupply. But has Clark's recent overwhelming enthusiasm about buying new left you exasperated with the consumer champ?

It's as if "Used Car Guy" is betraying his roots. Whatever happened to his advice to ride your old car until the wheels fall off?

Well, here's a rebuttal that may please you. AAA reports that the true annual expense of owning and operating a car is $7,800, according to an article in The Wall Street Journal. This figure takes into account insurance, gas, maintenance, interest, depreciation and other factors.

The real cost of buying a new vehicle comes when you take a huge hit on depreciation during the first few years of ownership. But that loss in value decreases each year until you're eventually practically driving for free.

So the math remains lousy if you buy a car and keep it for a short cycle. And it's even worse if you lease a car.

Are you one of the few Americans in the market for a car? There are more of you out there than you think.

CNW Research says 4 million used cars were purchased in the United States during the month of May. That's astounding when you consider that the market for new cars is only 9 million in the United States over the course of an entire 12 months!

Clark can't believe the advice he's about to give…but it's now possible to get a better deal on a brand new car than on a relatively new used car.

It's a classic case of supply and demand. The used car market is up about 25% and new car sales are down 34%, according to figures from The Boston Globe.

This is, however, a temporary phenomenon. Do not take this as gospel for the future! In most instances, a used car will almost always be a better buy. Just not right now!

Meanwhile, if you want to buy a new vehicle, Clark has new way to make the purchase easy. In the past, he's talked about CarsDirect.com and the wholesale clubs' buying programs.

But there's a new kid on the block known as Zag.com. This service gives buyers instant guaranteed up-front prices from a network of certified dealers. It also offers an easy delivery process that helps you avoid "the grind" at a dealership.

Zag is available to members and customers of Overstock.com, Capital One, UPromise and USAA at the moment.

So will Zag get you the lowest possible price? Well, it's a very good price, but a dedicated hard-working shopper can probably find a slightly better deal on his or her own.

It appears certain that General Motors is going bankrupt. The government was hoping to keep GM afloat with a private workout, but they're running out of time and it's unlikely that will happen now. Since we've already sent them over 30 billion in bailout money, the question remains as to who will assume control of the bankrupt company -- the government or the debt-holders. Either way, stock holders and bond holders will lose.

What if you own a GM or Chrysler car? The good news is the feds have agreed to back the existing warrantees for both, as well as the dealers' extended-service contracts. The bad news: some of you who traded in a car that still had an outstanding loan may face a problem. Dealers who are going bankrupt are not always paying off the loan on your old car as agreed. Unfortunately, that leaves you responsible to pay off both loans, even though you traded it in.

Another problem with these dealer closings is loss of your service records. Warrantee agreements rely on these records to determine whether owners are doing the required recommended maintenance. Without them, claims can't be processed.

What does this mean for you? In this market, Clark advises you to not to trade in a car that still has a loan. Also: if you don't have all your service records -- and your dealer is still in business -- go to the dealership, request copies of all your records and file those away. On the plus side, if you're a buyer, inventory overstock will allow you to steal a deal! But you'll need to buy with the intent of keeping the car a long time -- ten years or so -- since your car will have little to no value in the used-car market.

New data from Comerica Bank's Auto Affordability Index shows that new cars are now the most affordable they've been since records started being kept in 1979.

In fact, the average new car is now $1,700 cheaper than it was during the last quarter of 2008. That's a massive price reduction. And we've got more price cuts coming because of oversupply.

Speaking of oversupply, The Detroit News reports that Chrysler has rolled out new incentives that give an additional $6,000 back on a number of its vehicles. But remember, if you buy a Chrysler, you must keep it for a minimum of 10 years because resale value is greatly in doubt.

So if you are in a financially secure position, it makes sense to be in the car market right now.

Meanwhile, a hybrid is now the No. 1 selling car in Japan for the first time. This is the first year that hybrids are cost competitive with traditional gas engine cars. That's thanks in large part to the new Honda Insight, which has an MSRP of $19,000 fully equipped.

But U.S. auto dealers are running it up in price, so give it a few weeks before you try purchasing.

Finally, have you gotten a robocall about an extended car warranty? The Detroit News reports there are some 35 firms in the St. Louis area behind these automated calls.

Extended car warranties are problematic to begin with, but you'd never, ever want to consider one that's not directly from the car manufacturer itself. Period.

With all the talk about GM and Chrysler being on the ropes, there's another story that's not being told. The Asian automakers are ailing too. Toyota is down just as much as Chrysler, while Honda is down just a little less.

Here's the dilemma for the Asian automakers: They make a car in a foreign factory and then have to ship it to the United States. But while in transit, the domestic auto market just keeps bottoming out.

So now there are literally thousands of Asian nameplates that they're running out of room to park at the sea ports where they enter the country!

In one example, The Washington Post reported that Toyota had to rent a cargo ship to park 2,500 cars that they didn't have room for otherwise.

Cars are piled up at the docks, the rail yards and the dealer lots…and nobody wants them.

This means that in the next couple of months, you'll see deals on Asian cars that are unlike anything you've seen before. We're already hearing anecdotally about people buying new cars cheaper than they could a 1-year-old vehicle. Normally, that would be unheard of!

Just remember that this is a temporary window of opportunity because the Asian automakers had too many cars in production. Eventually that oversupply will be bought up. So you have to strike while the iron is hot.

Of course, Clark doesn't even want you to think about buying a new car -- no matter how cheap it is -- unless it's truly in your budget.

Vehicles now present the best affordability, best quality and highest level of safety ever since Henry Ford first rolled out the Model T.

The global oversupply of manufacturing capacity in the automotive sector is mind-blowing. The manufacturers built far too many factories in far too many countries around the world. That creates a lot of opportunity for anyone looking to buy new.

One particularly sweet spot in the market is the four-door sedan. Clark knows this isn't the "sexy" choice, but it is a Clark Smart one. You can buy a fully equipped sedan for under $20,000. Keep in mind that sedans will typically deliver 30% to 50% better fuel economy than a comparable crossover SUV.

A recent check of Consumer Reports' online database suggests a number of choices that offer both great value and a high safety rating. These include Chevy Malibu, Ford Fusion, Honda Accord and Hyundai Sonata to name just a few.

Looking for a little-known sweet spot in the car market? Clark has 2 suggestions to share.

First, try getting vehicle upgrades you want done aftermarket rather than paying the manufacturer. For example, Clark recently had DVD headrests installed in his Mazda 5 micro-van for $500. The same installation job could have been thousands of dollars had he gone through his vehicle manufacturer.

Second, manufacturers will have several models of what's essentially the same vehicle for sale at a variety of price points. So if you're in the market for a new vehicle, you want to buy the base model or no more than one model level up for the best value.

Clark often gets calls from people who wonder if extended warranties on cars are worth it. Though he's not a fan of them, extended auto warranties can make sense in some instances.

Now Clark is getting calls from people being offered a unique kind of extended vehicle warranty that seems to be a real bargain. They're told they can purchase the warranty, and then if they never use it, they'll get back the money they paid. Turns out it's just a ruse.

The Kansas City Star reports there is a lawsuit concerning the sale of these money-back warranties that's been going on for 6 years! The plaintiffs, obviously, are having difficulty getting their money back. The court has now ruled that the warranty company should give the money back but…surprise…the company has since filed for bankruptcy. Good luck getting your money back!

Here's the lay of the land when it comes to cash-back warranties: The warranty companies market directly to dealers and get them to sell their warranties -- instead of a manufacturer's own -- at huge profit margins to both parties. But the warranty company itself doesn't even have enough underwriting to pay for repairs. They just collect money with no intention of paying it back out. Then they do what's called a "bust-out," which is essentially like filing for bankruptcy, and disappear with their share.

The end result is that you as a consumer are stuck holding a worthless warranty. So don't believe the claim that you'll get your money back at the end. If you do buy a car warranty, you want to be sure it is the manufacturer's own. Otherwise, it only has a marketing company backing it up, and it isn't worth the cost of the paper it's written on.

Sales trends in the car market often move with the price of gasoline. As the latter has sunk, so has demand for small cars. Pity the poor automakers; they just got production up to meet increased demand and now there's a reversal in people's tastes!

The flip side, of course, is that the oversupply means deals may abound on small vehicles right now. Clark always wants you to zig when others zag. The average American could really benefit from better fuel efficiency, so this represents a real window of opportunity.

Financing from the American automakers may be hit or miss. GMAC is tightening up on credit by raising its borrower score requirement to a minimum of 700. That move reverses the industry's historical bias toward lending to customers that other businesses won't. Ford, however, confirms it's still loaning and leasing cars freely. So the chances are there to get a real deal on some smaller American cars.

The bigger news, however, is that the Japanese automakers also have oversupply of small cars in most categories except hybrids. No worry there, though; small cars typically offer much better payback than hybrids. Look for Honda to buck that truism next year with a new line of affordable hybrids.

In related news, The Washington Post reports that auto arson rates have doubled as people seek to collect insurance money. There's even a term in the insurance industry for someone who torches their own car -- "owner give-ups." With owner give-ups under increased scrutiny, you'll be suspected as a possible criminal even if you have a legitimate car fire.

Car sales are at their worst level since 1993, with sales down 27% in the month of September. We've known for awhile that American automakers have been hurting, but the latest figures show that even Japanese automakers are ailing. Toyota's sales are down 32%; Honda is down 34%; and Nissan is down 37%

There are 2 main reasons behind the death spiral in the auto business. First, we've lost confidence in the economy and are afraid to spend money on big purchases. Second, even if you wanted to buy a car right now, many banks won't write loans because of the tightening of credit markets. That should work itself out as the behind-the-scenes credit markets thaw out and more money starts flowing again.

One tip -- try your local credit union if you are looking for an auto loan.

Suffering sales means that this is a great time to buy if you're able. The news about the slowdown hitting Japanese automakers means that you may be able to steal a deal on some coveted foreign nameplates. Of course, the best opportunity is always to buy used, especially if you're looking for a luxury model.

In related news, Clark reveals that he's sold his natural gas car, the Honda Civic GX. He credits T. Boone Pickens with raising awareness about natural gas vehicles, allowing him to capitalize on the market scarcity by putting his up for auction online. Clark sold it on eBay for far more than he paid for it a year ago. Now he drives his old standby Scion XB!

The Norwegians have a new electric car coming to the United States in 2009 that's got Clark very excited. It's called the TH!NK City and it gets 110 miles on a single charge and goes up to 65 mph. The cost? About 2 cents a mile! And it doesn't eat up foreign imported oil like a gas-engine vehicle.

In other news, a group of researchers in the lab have developed an easy way to take sugar and turn it into a power plant for a hydrogen-powered vehicle. This development is not ready for the mainstream yet, but it's in the works. There are a lot of promising advances that are going to take a while to materialize in the marketplace.

In the meantime, Clark wants to encourage you to look at offbeat transportation alternatives. Washington D.C. has launched a Smartbike program. You pay $40/year for access to bicycles that are strategically placed around town. Users have a code to unlock the bikes and lock them up again at the other end of their commute. It's almost like a Zipcar program for bikes!

Worried about getting too sweaty during your ride? Buy an electric bike for around $600 and it will be no sweat getting around. Clark knows this all sounds kooky, but we need to expand our minds and realize we're not sitting ducks for foreign-oil interests. Christa has long had a fascination with a bicycle that runs on a weed whacker motor. If you Google "weed whacker bicycle," you'll even find videos that detail how to convert your bike.

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!

CLARKONOMICS: 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!

When it comes to research about reliable cars, there are two highly respected sources -- Consumer Reports and J.D. Power and Associates.

The latter's 2008 Vehicle Dependability Study shows that the most reliable cars are made by Lexus. They're followed by Mercury, Cadillac, Toyota and Acura.

When it comes to the worst of the worst, Land Rover is in last place -- again. Faring slightly better were Suzuki, Kia, Isuzu and Saab. In fact, Saab was named as the most-improved nameplate this year.

In addition to J.D. Power's tally, you should also check the April issue of Consumer Reports each year -- particularly if you're in the market for a used car.

Over the last few weeks, we've received hundreds of calls from people who wonder whether they should ditch their old gas-guzzling SUV/truck and buy a newer fuel-efficient vehicle to save money.

Clark usually says that it doesn't make sense to do so. But that's just general advice without looking at the numbers.

If you want to get really granular, Smart Money has a new interactive tool that features 11 variable fields where you can enter your trade-in value, gas mileage, daily driving distance, etc. The tool calculates how long it takes to start getting payback.

You may not like the answer you get. Sometimes the only way to make it work is to buy a used gas-sipper. In this respect, cars from Hyundai and Kia tend to depreciate much quicker than those from Honda and Toyota.

And if you're stumped on your trade-in value, know that Edmunds, Kelley Blue Book and others haven't stayed current with SUV/truck values. So deduct about 25% from whatever they say.

The car market continues to take a beating, with the latest blow coming from a horrible sales month in June. Fitch Ratings, meanwhile, has downgraded Chrysler and GM -- citing weak sales and rising fuel costs, among other things.

Ford is also struggling with collapsed sales. The F1 Series is falling further down the list, and Ford is delaying a new remake because they can't sell the old ones.

In short, any automaker that has had a heavy emphasis on unloved giant trucks and SUVs is hurting right now.

So what's a Big 3 automaker to do? Well, in the case of GM, they're offering sweeping rebates and great buying opportunities. Look for 0% interest on a 6-year loan and possible additional cash rebates.

Clark doesn't even like 5-year loans…and here they're pushing 6-year ones!

But here's the bottom line: If you are in the market for a new SUV or pickup truck, there's never been a better moment to buy one. You're also likely to steal great deals if you're looking at used vehicles.

One caveat: As Clark has mentioned before, you should try to get it in writing that your Chrysler warranty will be honored no matter what.

The car business continues its downward spiral. New figures for March show that GM and Chrysler are down 20% and Ford is down 14%, year over year. Ready for the stunner? After defying slowdown, Toyota now is down 10%. Honda is the only of the Big 5 automakers that emerged flat but unscathed. Be on the lookout for deals!

One word about Chrylser, but Clark wants to preface this by saying he's hasn't heard or read anything to substantiate his beliefs, nor is he trying to kill business at Chrysler dealerships. He's just concerned because the company was recently taken private and is being run by non-automotive people. So should the company go belly-up, he fears the owners might just shrug their shoulders and move on to managing other assets in their handsomely diversified portfolio. Chrysler dealers might want to get assurances from corporate that warranties will be honored even if the company goes bust. Again, Clark has no inside knowledge about whether Chrysler is ailing or not. He's just thinking ahead about possible future scenarios.

Finally, if you like fancy cars, this is a good time. Porsche sales are down 26% and Lexus is down around 20%. The theory that the rich would continue buying status automobiles through the lean times has proven false. And keep in mind that cash is king at the dealerships as loans become harder to get.

In Clark's TV work, he recently reported on a website that offers an interactive tool that should help the owners of old gas guzzlers. The site addresses that all-important question: Does it make sense to keep it or dump it and get a brand-new fuel-efficient vehicle? Before you play around with this tool, you should realize that the cost of a car is more than just the price of a gallon of gas or a barrel of oil. You have depreciation, maintenance, insurance, repairs and interest on the loan if you're not buying upfront.

What kind of gas mileage are you really getting? To find out, fill up your tank, set your trip odometer to zero and drive your normal route over a tank of gas. Then fill up again and divide the number of gallons you buy into the number of miles you drove. Keep in mind that if you replace your gas guzzler with a used car of similar age that gets great fuel economy, well, the math is irrelevant for you. You've simply bought like to replace like, in terms of age.

Clark's been hearing some interesting things in the car market. For the longest time, 4 cylinder engines were unloved. Now they're back with a vengeance. If your last 4 cylinder went from 0 to 60 in a day and a half, the technology has changed so much over the last few years. Today's 4 cylinder engines are more powerful and get better fuel economy than yesteryear. Meanwhile, sales of ultra-small cars like the Honda Fit have shot through the roof. So Clark's advice is look one size bigger for a steal of a deal. You'll get less depreciation over time and the slight decrease in fuel economy won't be much to outweigh the potential savings upfront.

There's great news for your wallet coming to a car lot near you. Automakers have been trying hard to scale back production to get supply and demand in sync. But it's not working; demand is dropping quicker than they can cut back production. There's simply too much product out there. Couple that with the fact that repossessions are skyrocketing and the housing slump is cutting into people's car budgets -- it all adds up to a perfect storm for the savvy car shopper. The Wall Street Journal reports that domestic, Japanese and European automakers are all offering great deals such as 0% or 1% financing and big rebates.

Edmunds.com will keep you up to date with the latest incentives. Keep in mind that sometimes a credit union car loan at 5% with loads of cash back from the manufacturer is a smarter move than an offer of 0% financing from the dealership with no cash back. So arrange your financing in advance, know the market and avoid "the grind" at the dealership. Start pricing vehicles at CarsDirect.com. They'll give you a fixed price that you can use as a reference point. You may even find that their price is the best. Surprisingly, people love the Internet for researching cars, but they always go to the dealership and face "the grind" when they want to seal the deal. Old habits die hard.

Consumer Reports' annual auto issue is out and Clark is giddy with excitement. The April '08 issue definitively says that extended warranties aren't worth the investment. Clark has historically been neutral on extended warranties for vehicles, but now he'll have to revise his opinion. Only 20% of people ever recoup the cost of the warranty vs. the cost of repairs over the lifetime of a vehicle. If you're buying a Mercedes, you'll have the best chance (about 40%) in that regard. Other vehicles where a warranty may be a smart move include Pontiacs, Jeeps, Chryslers, Buicks and Dodges.

In other news, there's a new champ when it comes to reliable small cars: Hyundai Elantra. Other top picks included the Honda Accord (family sedan); Toyota Prius (hybrid); Toyota Sienna (minivan); and Hyundai Santa Fe (SUV). American cars are getting more reliable, but they're not quite on par with the Japanese vehicles yet.

When it comes to the best used cars, they're all Japanese: Toyota's Prius, Highlander, RAV 4 (4 cylinder), Corrolla and Honda's Accord (4 cylinder). A new category this year was vehicles that are unloved, but good to own. This category was dominated by Korean vehicles such as the Kia Rondo and the MAZDA5.

Several automakers announced new plans for alternative energy cars at the recent Los Angeles Auto Show. Honda unveiled its Clarity, a hydrogen powered fuel-cell vehicle. The Clarity will emit zero pollution. A 3-year lease would run you about $600/month, so it's not exactly cheap. Honda will be marketing its vehicle in Southern California, where there are several dozen hydrogen-filling stations. Chevrolet/GM has plans to put around 100 of its hydrogen vehicles on the road in SoCal under the Equinox nameplate. Meanwhile, Ford is working to launch its plug-in hybrids. Those kinds of cars usually run on electricity for the first 40 miles before they kick over to a gas-powered engine. Clark salutes the entrepreneurial spirit of these automakers who are experimenting with new kinds of cars. Some of you may remember when Clark previously spoke about a car company called Tesla that's building a $100,000 electric sports car. Their goal is to use proceeds from initial sales to fund further research into developing alt-fuel vehicles that will be much more affordable for everybody. This is exactly the kind of entrepreneurial spirit that will help us move away from the environmental and national security dangers that go along with gas engines.

Your car is the second most expensive purchase you're likely to make after your home. So people often ask about which vehicles hold their value best after 5 years. To answer that question, Kelley Blue Book has just released its 2008 Best Resale Value Awards tally.

The winner is Volkswagen, which is making a comeback after some recent big losses. VWs keep just under half their value after a 60-month cycle. The other brands that round out the Top 10 are BMW, Acura, Honda, Porsche, Subaru, Lexus, Infiniti, Audi and Toyota.

On the other end of the spectrum, the worst brand to hold value has been singled out as Suzuki. With Suzukis, you only get about a quarter back for every dollar after 5 years. Other cars that really stink when it comes to holding value include Kia, GMC, Mercury, Dodge, Chrysler, Lincoln, Jeep, Ford and Jaguar.

On a related note, the Insurance Institute for Highway Safety (IIHS) says that the Subaru Impreza is the only small car that meets its strict safety standards. There were tons of midsized vehicles green-lighted by the IIHS, but not so in the large vehicle categories -- despite what you may remember from high-school physics!

Consumer Reports has released its annual vehicle reliability survey and Toyota has come out with a black eye. For the first time ever, the Japanese company's Camry has been dropped from the recommended list. Toyota made a corporate decision a few years back to become the world's largest automaker. In doing so, they had to take the focus away from making quality vehicles and shift it to growth. That explains why Toyota as a whole now checks in at No. 5 on Consumer Reports' tally of the most reliable vehicles sold in the United States.

Meanwhile, Ford has emerged as an unlikely hero in the report thanks to its enormous jump in quality. The "Not your Father's Ford" tagline is taking on a new meaning and people can no longer joke that Ford stands for "fix or repair daily."

The top carmaker remains Honda, followed by Acura and Scion. The first American nameplate on the list is Buick, followed by Mercury and then Ford. The least reliable car sold in the United States is Land Rover, followed by Hummer, Cadillac and Mercedes.

Cars speak to us emotionally. Clark's producer Joel bought a 2000 Nissan Altima recently that doesn't really stir his emotions; he simply views it as dependable transportation. Joel might have picked a Honda Element if he were buying on emotion alone. Christa, Clark's executive producer, has named the hybrid version of her standard Lexus RX 300 as her dream car.

Sometimes it's hard to step back from the emotional side and make a smart auto purchase. But think about the underlying hassle that comes with purchasing an unreliable vehicle.

When you're ready to go car shopping, get pre-qualified for a car loan from a credit union and then get Consumer Reports' annual auto buying guide. Try to find a balance of quality and that emotional X factor and you'll be on your way to a great car purchase.

Clark's associate producer, Joel, has been in need of new transportation and now he's got his hands on a great used vehicle. His old Honda Accord croaked on him and he'd been very patient looking online for a used car over the past few months. By checking Craigslist.org on a daily basis, Joel was able to snag a 2000 Altima with 139,000 miles for $3,200. Clark's executive producer Christa used AutoTrader.com to buy a Lexus EX 300 about three years ago. The car had 99,000 miles and looked like new. She initially narrowed her search to 10 cars, and eliminated five off the bat when she couldn't get the VIN number from the owners. A few cars she did get the VIN for had been in serious wrecks, so she was able to eliminate those ones early in the game too. The important thing to know is that you're less likely to have auto heartache if you're methodical and have the vehicle vetted by a mechanic and run the VIN number before purchasing. Both Joel and Christa paid cash, so they have no car loan. Meanwhile, Kim -- Clark's producer -- has had a pickup truck for about five years. She bought it on a whim when she wanted to take a road trip and got a zero financing deal. Within days she regretted her purchase -- she actually hates trucks! But she didn't compound her troubles by selling the vehicle and facing steep depreciation. Instead she's hung on to it and turned a not-so-great purchase into a financially viable one.

For years Mercedes Benz vowed that it would never bring its Smart Car to the United States. The luxury carmaker claimed there would be no market for it. But now that people wants smaller and more efficient rides, the Smart Car is set to hit our shores in 2008. The Smart Car is a two-person vehicle that Clark has been obsessed with since he first saw one in Europe. In fact, Clark and his wife have toured the factory in eastern France where these cars are made. Smart Cars were originally designed as a joint venture between Mercedes and the Swatch watch people before the latter company pulled out. A basic Smart Car has a list price of $12,000, but that can rise to $20,000 if you fancy it up. Clark recently had a chance to test drive a Smart Car for a TV story. He's not completely sold on the car yet -- even though he previously put a refundable $99 dollar deposit down. The fuel economy is great (between 40-60 miles around town), but it may be too small for his five-person family. Safety is another concern. The Insurance Institute for Highway Safety doesn't have a crash rating for the Smart Car yet. They think it may be too light to hold up well in a crash. While filming the Smart Car TV story at a Mercedes dealership, Clark couldn't help but notice some of the huge and fancy other vehicles on the floor. There was one Mercedes that cost $202,000. You could sure buy a lot of Smart Cars for that price!

The car market is going through some tough times right now. Sales are the worst they've been since the financial crisis of 1998. Toyota has reported lower sales for three months in a row, especially with their trucks. Ford's sales are down 20 percent over the last month and 14 percent over the whole year. GM is probably doing the best, which in this case means their sales are just on par with last year's figures. Meanwhile, dealers are scrambling because they're overloaded with '07s on their lots and the '08s are already in place. Add all of these factors up and it's clear that consumers are in charge of the car market.

People often ask Clark for a recap of what they should know when buying a new car. First off, get your financing in place before you buy. You'll usually get the lowest rates from a credit union or an online bank. Keep this rule of thumb in mind: If you can't afford a car on a standard 48-month installment plan, you're overbuying. Once you have your financing in place, check out Consumer Reports for recommendations about quality vehicles. Then check prices in the marketplace. Look at CarsDirect.com where you'll get a guaranteed price on a car. You should also test drive the car you want before buying. Visit a car rental business and see if you can rent one for cheap over the weekend. That way you'll have two days to decide if you like driving the car, not just 10 minutes. If you have to interact with a car dealer, try doing it by e-mail to avoid high-pressure sales pitches. And make sure the Internet price you get includes all junk fees like documentation charges.

It's no surprise that we Americans are energy hogs. But everyday there are new developments that help us reduce our energy consumption. Soon auto shoppers will actually be able to believe the gas mileage stickers found on cars in dealer lots! The feds used to put fake numbers on the stickers because the test used to calculate mileage efficiency was bogus. So you could purchase a vehicle expecting to get something like 26 miles/gallon (city) or 38 miles/gallon (highway) and get substantially lower real mileage. Now the government is enforcing a legitimate mileage test, so all cars shipped to dealers after Sept. 1 will have real numbers posted on them. Why the sudden change? The Toyota Prius really pushed this along. People were expecting to get 50-60 miles/gallon but the actual numbers were so much lower that people really ripped off and complained.

Another positive change that's a little further off involves LED (light emitting diode) lighting. Clark and his wife often battle over using regular or CFL (compact fluorescent lamp) bulbs in their home. He has a number of CFLs from the '90s when the technology still had a lot of kinks. In fact, once he was doing a TV story about energy-smart homes and he wanted to demonstrate his lighting for the camera crew. The CFLs took about 70 seconds to come on after he flipped the switch! Today's CFLs are much better (and faster to light up), so his wife is now more open to using them in their home. But CFLs may soon be a thing of the past when LEDs hit the market. LED are now used in new billboards and offer just about the best artificial light possible while eating up low energy. They don't release extra heat and they last for years. LEDs will probably be in offices, retail stores and industrial parks before they're available for home use. Clark thinks within four years LEDs should become a popular consumer product.

For 15 years, Clark has talked about the advantage of keeping a new car for at least 10 years or buying a used car and keeping it for at least four years. Cars lose about half of their value during the first three years, but then the loss ratio drops off pretty steeply after that time. Consumer Reports has now done a study on the virtues of keeping a car for 15 years. Bear in mind that most owners only keep their vehicles for three or maybe five years. But by keeping a car for 15 years or 225,000 miles, you save $31,000 dollars. The report found that during the course of 15 years, your average maintenance will be $18,000 and your insurance will be $18,000.

Consumer Reports also identified 10 vehicles that are reliable enough to last 15 years -- and they’re all Japanese! Among the top ones are Honda’s Civic, CRV and Element; and Toyota’s Forerunner, Landcruiser and Highlander models. So what vehicles should you not buy? A lot of European models, according to Consumer Reports, such as the BMW 7 Series, the Infiniti QX 56 and select models of Jaguar, Mercedes, Volkswagen and Volvo. Meanwhile, how should you decide when it does not make sense to repair a car? Clark typically tells people the cutoff should be when the cost of repair is 50 percent or more of the car’s trade-in value. Now Consumer Reports says you can push that up to the actual trade-in value. Other times you should junk a car is when it’s rusted out; really unreliable, in a flood or in an awful accident.

Over the past five or six years, there's just been one deal after another when it comes to buying an automobile. It goes back to the months after 9/11 when GM tried to jumpstart sales with offers of zero financing for five years. Other automakers quickly followed with similar deals. But now people aren't buying cars as readily because of the fallout from the stock and real estate markets. Overall the industry is having dismal sales results. So that means that you have so much bargaining power right now that it's not even funny. Yet two-thirds of consumers squander that power by not doing the right things.

So what should you be mindful of when you go to buy a car?

First, do research online before you buy. Check Consumer Reports and sites like KelleyBlueBook.com and Edmunds.com to find out about reliable cars that won't need much maintenance.

Second, arrange for financing in advance before you get to the dealership. Credit unions offer interest rates on car loans that can be one to three percent lower than other lenders. You may also want to check online lenders. Even your auto insurer may be able to give you a competitive interest rate. Whatever you do, don't go with a traditional bank or dealer financing. Also, don't tell the dealer you're a cash buyer or credit union customer because they'll factor that into the price in a negative way.

Finally, buy your car before you get to the dealership. By this Clark means you should avoid going to the dealer and negotiating the purchase of your car or you'll face "the grind." The grind is when the salesperson says he or she will go talk to their manager about getting you the best deal. Instead they go watch TV for five minutes and come back and tell you that the manager couldn't help out with a good rate despite their best efforts on your behalf. This is total baloney. When it comes to price, you want to stay in your ballpark, not theirs. After all, they have home field advantage because they sell cars everyday while you may only buy a handful of times over the years.

As a final thought, you may also want to purchase through a warehouse club if you're a member. There you'll enjoy a set price and no haggling.

When you use a car dealer to finance your auto loan, the dealer will mark it up as much as they can. But the average black customer buying a new car pays an interest rate that's 40 percent higher than the average white customer -- even after accounting for differences in credit scores. Hispanics, meanwhile, pay almost the same as non-Hispanic whites, just slightly higher. In the used-car market, one in three blacks pay an interest rate that is above 15 percent, while the average rate for a white person is less than 10 percent. Clark thinks it's a shame that this residual racism is still around in 2007.

If you dig deeper into this story, you'll really find that anyone who doesn't get pre-qualified for a car loan will pay more than they should. So Clark advises anybody seeking an auto loan to get pre-qualified at a credit union, which will offer lower rates than a bank. Think about it like this: You may have spent hours researching your car thoroughly, but you've got to do the same on the loan. Dealers are entitled to make money on a loan if you don't do homework and get pre-qualified elsewhere. Historically, that mark-up had been about 10 percent points. After all the legal settlements of the past few years, however, it now is usually three percent. That means if a bank offers you a car loan for 5 percent, the dealer will offer the same loan for 8 percent. So whether you're black or not, it pays to get pre-qualified for an auto loan.

Clark's daughter has his Honda Civic hybrid at school and she's happy to be getting about 45 miles/gallon. It seems that hybrids with good fuel economy are now selling like gangbusters. Remember back just a few years ago when this wasn't the case? Ford had to offer incentives just to move their Escape hybrids. Now The Washington Post reports the Escape is so hot that dealers can't keep up with the demand. In fact, the vehicles are selling for thousands of dollars above the list price because people want to save money on gas. Psychologically it may feel OK to pay a little more now with the promise of bigger savings down the road, but Clark thinks you should really crunch the numbers before you make this kind of purchase. Buying with your emotions isn't advisable, nor is overpaying for new technology. Take the rational approach by doing some smart comparative auto shopping on a website like Edmunds.com. The same thinking applies when deciding whether to dump your current gas-guzzling ride for a new and more fuel-efficient vehicle. Look for a similarly depreciated vehicle and try to do a trade where you get an older set of wheels that's more fuel-efficient than your current car.

The airlines are behaving so badly these days. Continental is often thought of as delivering the best customer service, yet something might be going wrong judging from the slew of recent horror stories Clark's been hearing. First there was the tale of Continental's sewage-filled flight from Europe to New Jersey. Apparently there was a malfunctioning toilet that wasn't fixed before takeoff. It spilled raw sewage up and down the aisles all across the Atlantic. The company's response to that incident was lame at best.

Now there's been another Continental snafu that's caught Clark's attention. This one concerns a passenger revolt that took place on a grounded Continental flight, and it was first reported in The Baltimore Sun. About two weeks ago, a flight from Venezuela to Newark, N.J., was diverted to Baltimore because of bad weather. Once the plane touched ground, it sat on the tarmac for five to seven hours. Worse still, the passengers had no food, no water and no working toilets or toilet paper. So some travelers began rhythmically clapping their hands in protest while others beat out an accompaniment on the overhead bins. The unrest caused the pilot to radio the police, who put the passengers in a hallway with what some have called an "attack dog." Continental doesn't even deny the facts. The airline only says that the airport couldn't make proper arrangements. But the airport denies this version of the story. What this all points to is the need for a federal passenger bill of rights that guarantees food, water and working toilets during a delay, plus the provision that after a plane is delayed for three hours on the tarmac the passengers will be brought back to the terminal. So far only JetBlue has even come close with its own passenger bill of rights that promises to pay customers if there are any delays.

The Chinese have come into almost every American market except for cars—until now! Starting in 2008, Chinese cars will be sold under the Chrysler name in the U.S. Mainland China has a goal to account for 10% of cars sold in the world. But quality is a huge issue with Chinese manufacturing. Hyundai started off with terrible products at first; China might too! China makes terrible toys, dog food, tires, and much more, because there aren't sufficient checks and balances in the manufacturing system. So it will be a challenge for them to get the quality right. But they'd better, because the quality of cars these days is top drawer. Cars are better, safer and more reliable than they have ever been, so it's a great time to buy.

Ford is working with the power companies in California for plug-in hybrids, which are electric-powered for the first 40 miles, after which the car switches to gas. These are awesome! They cost only 2 cents per mile, only a fraction of what you pay per mile for gas! And it's a great way to reduce our dependence on foreign oil.

While the big oil companies are the ones ripping us off, it's your local gas station that gets the heat from consumers. But did you know that gas stations actually like it when the price of gas is lower? When prices get too high, people tend to buy less of the expensive convenience store goods like beer, cigarettes and lottery tickets that are profit boosters for gas stations.

No matter how you look at it, fuel is just one cost associated with a car. If you were paying to ride in your car the same way you pay to ride in a taxi, you'd be spending some 50 cents a mile. But what if you could drive for as little as two cents a mile? There are a number of smaller companies such as Kurrent making electric cars offering that kind of fuel economy. Kurrent -- which was bankrolled by ad-agency people using their retirement funds -- makes an electric vehicle that will go up to 35 miles an hour with a 100-mile range on flat ground. You can charge the vehicle in an ordinary household outlet. And though it is very small, it's built strong enough to be substantial in a crash. They're making up to 10 of these cars a day. The primary market is in large retirement communities in Florida, California and the mountain states. But if you think you're too cool for a grandpa-mobile, just ponder these economics: In addition to running for just two pennies a mile, a Kurrent costs as little as $10,000 to buy. Now that's a Clark Car if ever there was one! Clark has been fixated on great fuel economy since the oil shortages of the '70s. As he says, we are the strongest nation on Earth, but we won't always be if continue to give our money to oil-producing nations that want to destroy us. We must be innovative as Americans, and going electric with your car is one way to do it.

The market for gas-guzzling vehicles is awful! Car companies like Chrysler and GM are trying 0% financing with rebates to try and pull consumers back in. You can get incentives on some vehicles, others will give you 0% financing, and some deals will give you both! Each company has a “summer drive,” so that they will advertise better deals for SUVs and trucks to make up for their high gas consumption. However, if you're thinking of buying an SUV but don't plan to own it for the life of the car, keep in mind that it is very tough right now to get rid of a used SUV. Practicality is now beating out style.

A few years ago a French inventor came up with the technology for an automobile that runs on compressed air! It generates no pollution at all, costs about $2 per fill up, runs 125 miles on a tank, and can go up to 70 mph. It looks like a micro-mini van, with a sliding door. Clark loves the idea. But so far, even though they're bringing 6000 of them to India, no one wants to bring them to the U.S. So until they're available here, Clark is considering getting a "GX", a car from Honda that runs on natural gas, the kind of gas that heats your home. It creates almost no pollution, costs about $1.20 a gallon, and about 97% of the gas supply would be from domestic sources. Honda is only bringing about 1200 in per year (to New York and California only) to see if there's a market for them. To fill up, you install your own gas station at your house and plug into it overnight. On road trips you'd have to do your homework to find out where natural gas filling stations would be. But Clark is really excited about these cars, and would even consider breaking his own rule of avoiding costly "new" technology in order to be an early adopter.

Actual demand for gasoline has gone up over the past year even though the price has gone up substantially. In America, more than almost anywhere else, we have really long commutes. This means that most of our driving is inelastic, which means we basically have to drive and we don’t often drive for leisure. Small cars and 4 cylinder engine cars are being bought in droves these days. BMW is even bringing their one series car over from Europe to the US as well. Clark rented a Chevy Aveo in Washington D.C. and loved getting 37 miles to the gallon in it as well as the ease of parking in the downtown area.

About a year and a half ago, after Hurricane Katrina and the big run up of gas prices, Clark proposed an idea: discourage people from buying gas-guzzling vehicles and encourage them to buy fuel efficient models. He suggested taking vehicles that got bad fuel economy (less than 20 miles per gallon) and hit them with a $5000 gas-guzzler tax. If you buy a vehicle that gets between 20-29 mpg there would be no tax, and if you buy one that gets over 30 mpg, you’d get a $5000 rebate from the government. Some people were furious with that position. But now, the State of California is considering doing this. (The California tax would be $2500 for guzzlers, a $2500 rebate for efficient vehicles, and no tax for autos that fall in between.) Americans use far more fuel, electricity and energy than other countries of equal wealth. He believes that we hurt our national security and our national defense needs when we remain dependent on foreign sources that hate our guts. That’s why in Clark’s opinion encouraging people to use less energy of all kinds is a big deal.

New statistics show that for the first time in almost 6 years, people are buying more cars than light trucks, which include SUVs, minivans, pick-up trucks and vans. That’s been the sweet spot in the car market for years, but now that’s shifted: Small cars are selling like mad, and big vehicles are not doing well at all. Cars.com does a list of the top ten cash back offers on the market, and Clark discovered that the discounts top 25% on several models. Number one is the Chevy Silverado, which is giving $4500 cash back (a 28.41% discount from the MSRP.) The Dodge Ram is giving a 28% discount ($6000 back) , the GMC Sierra a 27% discount, the Ford Freestar a 25% discount ($5000), and the list goes on. For those of you who want or need a large vehicle, there are some outrageously good deals out there for you. But the greatest deals are on the used ones - you can steal a deal right now. The flip side is that if you are buying a new SUV (or anything that’s not “in”), you’ll save a lot on your purchase, but you’ll get pinched on the trade-in value on your old one. If the vehicle you are trading in has enough years on it, however, the pinch you’ll suffer is not nearly as much in dollars as the benefit you get in dollars on the new one.

For years, Clark has heard various angles about how criminals are stealing identities. One that is increasing in number is involves restaturant workers and other retail employees who steal customer information when they hand over their credit cards or debit cards. They use a Palm Pilot, an older personal data assistant, to discreetly swipe your card and steal your identity. One single individual can pull it all off before anyone finds out. In the case of one Los Angeles waitress, she was paid $200 for each card she brought to the leaders of the criminal ring stealing the identities. She now faces 12 years in prison for theft. Meanwhile, the criminals running the ring got off scot free. Remember never to use your debit card in restaurants or places where your cards can be temporarily taken out of your sight.

Clark is having renovations done on his house so he gets to see a lot of pick-up trucks. For a while, people bought trucks as a fashion statement. They were almost considered luxury cars. Nowadays, they’re back to being work trucks, used for their intended purpose. That’s because they are gas guzzlers and only people who really need them are buying them. At the same time, there has been a slowdown in construction. People who may have traded in an old truck for a new one are holding off. The end result is not as many trucks are being sold. The trucking industry has a huge oversupply of cars. For example, GM has an oversupply of 129 days. The ideal amount is about 55-60 days. Anything over 75 days is not good for the dealerships. So what are they doing to get rid of the trucks? They’re offering zero-percent financing on new trucks. There is also an X-factor out there from Toyota. The company is building its own big truck called the Tundra. Some people are turned off by this; others love the idea of a reliable truck from Toyota. As a result, prices on the Tundra vary around the country. Check pricing at carsdirect.com.

People often buy a car this time of year. So, do you know about how much it takes to go one mile in a car? Typically, it’s more than 50 cents a mile. You probably think gas has a lot to do with that, but the big money is actually in depreciation. That’s a fancy way of saying your car loses value over time. The first year of ownership, it loses the most value. Then, after several years it levels out. In addition to depreciation, you have maintenance, insurance and repairs. So, Clark wants you to be smart when buying a car. First of all, buy Consumer Reports’ annual car buying guide. It comes out every April and is on news stands now. In it, cars are rated on the quality of car and the type of repair record the car has. Secondly, once you’ve figured out what cars you might want, test drive them. The best thing to do is rent a car for a few days – maybe from Enterprise or Hertz, which have neighborhood offices. A lot of rental cars sit in lots on the weekend and will cost you very little to rent. Once you’ve got it narrowed down, go to carsdirect.com and figure out what you should be paying. Once you’re at the dealership, pay only what the car is worth and no more. If you don’t want to deal with that often unpleasant experience, buy through one of the car-buying programs at a warehouse club or at carsdirect.com. Just make sure you have your financing all ready before you buy. In addition, if you buy from a dealership, the dealer is going to try and sell you an extended warranty. Clark is neutral on car warranties, but you should not need one if the car is reliable. And don't deal with the trade-in until you've negotiated a price on the car.

If you are interested in a new car, Clark has news for you. Edmunds.com has done an analysis of GM, Ford and Chrysler and has come up with news that is entirely different than the industry report most people see. Edmunds found that it would take at least three months to sell the cars sitting on dealer lots at these three companies if no more cars sold. That is a huge inventory and these companies have to pay when cars are sitting on lots, taking up space. On the other hand, Toyota has almost no cars sitting on its lots. So, what does it mean to you? American and German-made cars are a steal. What you don’t want to do is sell your somewhat new American car to buy a GM, Ford or Chrysler.

Ford Motor Company has decided that zero percent financing is what moves cars. The company is offering a new program over the next few weeks whereby you can get zero percent financing on a variety of Ford products. It doesn’t include everything in the Ford lineup, but if it works the company will probably keep doing it. Included in the list are also cars from other companies - Lincoln, Hyundai, Mazda, Suzuki, Toyota, Hyundai, Mitsubishi. For a full list of the models, go to smartmoney.com. Also, Edmunds.com gives incentives by various zip codes. So, check out areas other than your own. You may end up getting a great deal.

Clark has great news for you if you’ve been hit by new car fever! Spring is usually the time of year that car dealers shine. But this year is not syncing with that trend. GM and Ford have both suffered a 20 percent drop in car sales. Chrysler is down 15 percent. And Toyota and Lexus are down 10 percent. Overall, the auto industry is down 13 percent. So, in a time when supply and demand favor the dealer, it’s now the opposite. Car buyers are now in the driver’s seat. The one exception is BMW, which is doing quite well compared to a year ago. So, what do you need to do? First and foremost, get the loan first. This is especially true for new cars. Go to your credit union or bank (if you have to) and get pre-approved for a loan that is no longer than 48 months. Secondly, look at Consumer Reports’ April issue. That issue gives you the most reliable cars at various price ranges. Then, consider becoming a member of a warehouse club and get involved in their car-buying programs. Dealers clamor to be warehouse club dealers, so there are set prices that you want to know. It’s a no-negotiation way of buying a car. Also, look at carsdirect.com to compare car prices so you know what you should pay going in. once you have all your ducks in a row, go test drive some cars. Just make sure you don’t buy a car right away. Shop around and get quotes from various dealerships. When you have the price you want, take delivery!

Why does Clark prefer that you buy used cars instead of new? Well, according to Kelley Blue Book, the value of a new car drops like a rock as soon as you leave the lot. Let’s say you buy a new American car and trade it in five years from now. How much of the original purchase price is it worth? Between 22 and 25 percent. In five years, it loses between 75 and 80 percent of its value. What about Japanese cars? Two vehicles that hold their vehicle better than any other car are the Toyota Camry and Honda Accord. They hold about 60 percent. So, there is a benefit to buying a new Japanese car versus a new American car in terms of resale value. But there is still a large drop. If you buy a used car that is a few years old and have it checked out, the car will keep its value much longer. There may also be some of the warranty left on the car, which is great. Even better news is that car prices are now going down and car companies are adopting a “no-haggle” buying procedure. So, the process is easier and cheaper. GM is one of the companies that tried the no haggle deal, and it did not work so well for them. So the company is implementing special incentives on top of the deals. It’s basically a great time to buy a used car. Just remember to always have your used car inspected by a certified mechanic and research the title history on carfax.com. That goes for “manufacturer certified” cars as well.

There are a ton of “young” used cars sitting on dealer lots right now. The marketplace is overrun, in fact, and prices have dropped significantly. So, if you like a car that is a couple years old, you have found the sweet spot in the market. Even more fantastic are the deals on used SUVs. Of course, you’ll be paying a lot more for gas. But the SUV market is overrun with vehicles. The average price on a three-year old SUV is about $13,000! If you do buy one of these used vehicles, just remember to have it checked out by an independent mechanic. What about buying new cars? Well, GM has come up with a program to get more women in the door. Women hate the car buying process because of the way they’re treated and they talk about it openly. At the same time, women influence 85 percent of all car purchases, whether they are the ones buying or are the partner of someone who is. So, GM has started “Girls Day Out.” When women arrive there are massages, makeovers and cooking classes, along with cars that women can test if they want to. Clark thinks it’s crazy. What needs to change is how dealers do business, not adding fluff around it. Carmax has the business model other dealerships should emulate.

What would you think if Clark told you that you could get a fully equipped car for under $6,000. That is the promise from the former car maker known as Renault, which has come out with a new car called the “Logan.” It was designed for certain markets in Central Europe where people may have been under Communist regime and weren’t making a lot of money. But people were traveling all over Europe to get the cars, which cost as much as $9,000. So, the company decided to start selling in other places. And, it is not the only example. In India, a $2,000 car is in the works. The Chinese are working on a $3,000 car. The market for very cheap, but reliable cars is huge right now. Sales at GM have doubled since the company expanded its “employee discount” to regular customers. The cars cost so little to build because it’s such a mass production. But the quality is just fine. If you can figure out how to make a product reliable and affordable, the sky is the limit.

We are about to see some ingenious inventions when it comes to car manufacturing, according to the Detroit News. This will be the most exciting decade of innovation, not to mention the choice of models and the extra low prices that will be available. “Model turnover,” or how often a model is redesigned, is going to be huge. Nissan, for example, is going to replace 134 percent of its fleet in the next few years. That means it will change one model more than once. The same is true of Honda, Ford, GM and all of the other big manufacturers. Clark is not a big fan of buying a model the first year it’s produced. But what’s going on is phenomenal. There is no reason to overpay for cars in the next few years because it’s a buyer's market whether you’re buying new or used.

People used to have to barter when they bought a car. Deals could take up to two days. Now, younger people expect no hassles when they buy a car. People who are less than thirty-five gripe more, complain more, and insist more on an experience that is clean and simple. Car dealers are either adapting or dying. According to a JD Power survey, buyers under thirty give dealers horrible scores compared to older customers. Buyers under thirty expect to go into dealerships and buy a car within minutes. Another study dealt with the Toyota Scion. Customers under thirty-five are 40% more likely to find problems with their Scions then older customers. This means that younger customers are being picker, and forcing dealerships to adapt. Clearly, younger customers want a simple, easy, and pressure free car buying experience.

New data for the automotive industry shows that deals are even better than we thought they were. The overall prices of cars are the same as they were a few years ago even though our incomes are going up. As a result, the car market is way out of kilter and people who took advantage of the incentives of recent years won’t be buying again for a while. That could mean auto plants in Detroit shut down or even close. So, automakers are doing everything they can to stay in the game. New vehicles with much different looks that cost under $15,000 are the new sweet spot in the market. The heart of the market will hover in the $20,000 to $25,000 range. So, there are more brands, more types of models and more price points than ever. As a buyer, you have more power than you’ve ever had. Just remember to do your homework and get pre-approved for your loan. Used cars are also a real deal, but more work is required to buy one of these wisely.

Despite the claim from auto companies that incentive programs were going away, GM has come out with an incentive offer that is said to top any other previous program. The program, called “Lock & Roll,” includes zero percent financing on two vehicles. The deal is that you get zero percent financing on any GM vehicle. Then, when you’ve paid that car off and are ready to buy another, you get zero percent financing again. It depends on the type of vehicle, and you’ll always be in a car payment. But if you love to have new wheels every 3 to 5 years, this program could be great for you. You can lock in no financing until 2012 or 2014, depending on which offer you take.

Clark has long had a bias for used car purchases instead of new car purchases. But he wonders if buying new is sometimes the best idea. New cars can be great deals, especially with all of the sales incentives and financing rates out there. At the same time, used cars that are a year or two old are the best deal they’ve ever been. How can that be, you may be asking. The answer is that all of the sales incentives in the new car market have caused people to ditch old cars that they would have kept longer otherwise. And used cars dealerships have had to drop in price in order to be competitive. So, the first has led to be big effect on the second. It also means that new cars lose a huge percentage of their value in the first year of ownership. New cars lose more than one third of their value in the first 12 months. In the first three years, they lose 60 percent of their value. For this reason, buying used luxury cars is a growing trend. No matter what kind of car you’re going to buy, always have it inspected by an independent mechanic.