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.

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.

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.

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.

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.

Clark has received calls for years from Toyota owners complaining about “engine sludge.” No matter how many complaints come in on the show or in general, the company has always blamed drivers for the problem and it’s frustrated Clark to no end. Well, finally Toyota is changing its tune. From now on, certain models will be covered for “engine sludge” for 8 years. The company has not accepted responsibility, but a statement reflects that defects in two of Toyota’s engines caused the sludge. The included models and years are: Camry (1997-2002), Solara (1999-2002), Sienna (1998-2002), Avalon (1997-2002), Celica, (1997-1999), Highlander (2001-2002), Lexus ES-300 (1997-2002) and RX-300 (1999-2002). Even if you’ve gotten the problem fixed and paid for the problem yourself, you could get your money back. The courts and the law prevailed in this case, which doesn’t always happen. Toyota’s luck eventually ran out and you are the beneficiary.

We are in a difficult spot in the automobile industry right now. The three American automakers – GM, Ford and Chrysler – are struggling to sell cars. At the same time, dealers have tons of cars on their lots that aren’t selling. Dealers have what are called “flooring plans,” which means they pay another company to put cars on lots. And, there are liens on the entire inventory. Every day that a car is sitting on a lot, the dealer is paying for it. So, flooring costs are going up at the same time interest rates are going up. As a result, dealers are making all kinds of deals. If you check out Edmunds.com, you can see the “true market value” of a car. It gives you a target of what you should pay. Warehouse clubs and credit unions have car buying programs, as well. The car market does not have deals on fuel efficient cars, however. These days, people want cars that get 30 miles to the gallon or more, so getting a deal on those kinds of cars is tough. But you can get great deals. You can even go to carsdirect.com, where someone will help you buy the car you want for the price you want. Consider traveling if you’re going to buy a car. Prices vary quite by region. You can save as much as $2,500 depending on where you buy.

It’s a tough market right now for GM and Ford. GM has reported car sales down 20 percent this year and Ford is having the same difficulties. As a result, these companies are offering huge incentives. For example, Ford’s Expedition is the biggest gas guzzler out there, getting between 9 and 11 miles to the gallon. That’s awful and people simply aren’t buying them. So, Ford is offering a combination of incentives of up to $13,000 with its “Drive on Us” program. When you buy a vehicle, you need to know up front all the incentives that are out there. The incentive packages are available at Edmunds.com, so check them out. It’s also a good idea to check out carsdirect.com, which gives prices and the ability to buy right on the site. It may not be the best price, but it will be convenient.

GM is trying to come up with ways to make sure people are still buying big SUVs. Sales trends show that people are interested in smaller cars these days. The shock of gas prices has people buying smaller cars. So, GM is trying to hook people in California and Florida with cheap gas. The company is guaranteeing unlimited gasoline for $1.99 a gallon for the first year of ownership. If you drive a lot or must commute long distances, this is a huge deal for you. A few years ago, $1.99 seemed like an outrageous price for gas. Today we have a different outlook. But GM needs to sell cars and $2 must be the price point that works. In Florida, the deal pertains to the Chevy Impala, Buick LaCross, Chevy Monte Carlo and the Pontiac Grand Prix. Those are all mid-sized cars. In California, it’s the Chevy Suburban, Tahoe, the GMC Yukon and the Yukon XL. If it works, GM will certainly expand this program around the country. We’ll keep you posted.

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.

We are all drawn in by the word “sale.” It seems it’s all over the auto industry today, with every discount and mark-down you can think of. The problem is that after a big sale, there are no more customers and dealerships don’t make any money. No one has suffered more from this than GM, which owns Buick Cadillac, Pontiac, Chevrolet, Saturn, Saab and Hummer. In fact, Wall Street says GM has a 40 percent chance of filing for bankruptcy. GM obviously doesn’t want to go belly up, so the company has decided to offer sale prices all the time. Basically, it means everyday low prices and honest prices, like Saturn has done. GM will reduce the price on three-fourths of its vehicle by about $1,000. They hope that these “real” will draw in buyers all the time.

Auto incentives are continuing through the month of January. So if you’re in the market for a new vehicle, listen up! First of all is GM’s “Red Tag” sale, where there is a maximum price on the vehicles. It’s different from the “employee pricing” sale from earlier in the year because you can try to negotiate a lower price. Before you go to the dealership for the Red Tag sale, you want to go first to carsdirect.com and see what price you may get. Ford has also started a new incentive program known as the “Keep It Simple” plan. There is a maximum price on vehicles, and cash incentives are added in. But the price is negotiable after that. Clark looked into it and invoice prices are substantially lower than the manufacturer suggested price, some as much as $12,000 below. Chrysler is not as generous with the discounting, but is giving two years of free gasoline, two years of free scheduled maintenance and an increased warranty of 5 years and 60,000 miles. So, Chrysler is they’re trying to appease people who have fears about American-made vehicles. American cars are made much better than they were three or four years ago, but people still want peace of mind. The free gas is capped at roughly $2,400. But these incentives are great if you willing to work at it a bit.

GM, which owns Pontiac, Buick, Cadillac, GMC and others, is in a tough spot right now. The company has temporarily shut down assembly lines around the country and there are rumors that GM is about to file for bankruptcy. On top of that, GM is having a very difficult time selling cars. GM has discovered that it can only sell cars when the company offers huge discounts. So, GM is now back at it and has launched a new sale known as the “Red Tag Sale.” So, when you go to a dealership, you’ll see the Monroney label on the car and, next to it, a “red tag” price. This is the no negotiation, maximum price, so the car can’t be sold any higher than that price. Then, if you’re a savvy shopper, you’ll be able to negotiate below that price.

The second largest expense for most people is a car, and the car market has been turned upside down because of employee pricing discounts. It started with GM and then Ford and Chrysler got involved. In the month of June, sales were up about 50 percent more than last year because of these programs. So, this no-haggle promotion is the most successful one in history. The interesting part is that the amount someone saved on a car overall was the same, according to several studies. But, once the employee pricing model was introduced, sales took off. People hate the car buying process, so they were willing to spend more – or at least the same – when the price was the price. If you want more proof, think about CarMax. The company has a no-haggle sale policy, and people can get their money back if they decide to take the back in the first three days. CarMax may not be in your town yet, but if it is it’s worth checking out. People in the car business need to wake up and realize despise the grind. The average car dealership keeps people in limbo for two days before the sale happens, and people are sick of hearing, “Let me go talk to my manager.” They’re voting with their wallets and it’s going to continue.

Car sales have been extremely generous over the past month. It started when GM announced it would offer the “employee discount price” to customers. It was very successful because the prices were better and because there were no games. You knew exactly what you’d be paying. It caused Ford and Chrysler to match the deal. GM has now realized that people will buy more cars if they don’t have to play games over prices. So the company will now adopt much lower list prices on cars and try to get dealers to adopt no haggling policies. Old habits die hard, so we’ll see how this goes. But be aware that GM is at least trying to have lower prices and fewer games from now on.

GM used to be dominant in the American car market, but now the company only has about one-quarter of the American made cars on the road. GM has 1.25 million new cars that they have not been able to sell. The only thing GM can do to try to sell these cars is offer customers deal after deal. They are now offering a deal that says if you own a GM, they will let you buy a new GM and they will give you $1500 off. This just goes to show how much control the consumer has in the car market.

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.

The three major Detroit automakers – GM, Ford and Chrysler – have come up with a new strategy for pricing cars. These companies are pushing through very large price increases on the 2005 models, even though the 2004, 2003 and 2002 models did not sell very well. In fact, these companies are raising the prices of vehicles AND increasing incentives. That is because there is a percentage of car buyers who purchase strictly on emotion. These people do no homework and they get caught up in the thrill of driving a new vehicle. The car market is basically splitting into three categories: people who do no research, people who do some research on the Internet and get a somewhat better price, and finally those people who do lots of homework. The third group treats buying a car like a part time job, but it’s a very small percentage of the pot. Automakers realize that only about 10 percent of buyers will really work for a good deal. So they can still mark up vehicles and increase their profit margins. Remember that knowledge is power!

The car market is wheezing these days because cars are piling up on dealer lots and in factories. If you’re a stockholder in or you work for one of the automakers, you are not happy. But for consumers, this is great news. The automakers are actually victims of their own success. In 2001, GM and other companies offered zero percent financing and special rebates, and people bought cars like crazy. Today, they have run out of buyers and are now offering three great incentives for you and me. The first is massive rebates – up to $5,000per vehicle in some cases. Secondly, they’re offering zero percent and very low percent financing. Lastly, dealerships are willing and ready to negotiate because they desperately want these cars off their lots. Every day a vehicle sits unsold on a lot, the dealer has to pay finance charges. The Detroit News reports that GM has 1.5 million unsold vehicles right now. It’s reasonable to have a 55 day supply of cars on your lot, but. Ford has a 90-day supply right now. Chrysler has a 72-day supply. Honda has had to double its incentives, and Nissan has increased its cash incentive to almost $2,000 per vehicle. It’s up to you to know the deals and shop around. At detnews.com, there is a complete list of incentives. You can plug in variables and see which offer is best for you. The company also has a top ten list for you. If you’re a credit union member, you may be better off getting a rate with your credit union along with a small incentive from the dealer. But financing through the dealership with a large incentive could work, too. It’s up to you. Also, get instant prices at carsdirect.com.