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.

Here on The Clark Howard Show, we have something informally known as "Car Call Mondays." Every Monday, Clark's staffers have to ration the car calls because people flood the phone lines after buying suspect used vehicles over the weekend.

With used car purchases, you buy "as is" -- no matter what condition the car is in. The vehicle and all its warts become your problem. If it comes with any warranty, it's usually very limited.

So Clark wants you to do your homework when you're buying used.

First, make sure the vehicle is worth what you're paying. Check Edmunds.com for the true market value so you come up with a feel for the price.

Second, run the vehicle number through CarFax.com to find out if it's a flood vehicle or if it's been in a horrible accident. For the past 15 years, the insurance industry has been able to block a proposed federal database that promised to give instant access to records about known calamity cars. But no more -- look for the database coming soon.

Finally, have the vehicle checked out by a mechanic as a condition of purchase.

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.

People are buying sub-compacts vehicles like crazy these days. Clark loves to ride around in sub-compacts when he's overseas in Asia. Foreign markets are all about the economy of packing as many people into a vehicle as possible. For example, Clark's Scion XB seats about 5 people over here, while 12 people will squeeze into the same vehicle over in Japan. Even high-end manufacturers like BMW and Mercedes are getting into the sub-compact market with their 1 Series and SmartCar brands, respectively.

Because of the sub-compact sales frenzy, you may now be able to buy one size larger for less than you would pay for a sub-compact. The fuel economy losses in going bigger may only be a couple hundred bucks a year. Even Clark who is obsessed with dinky cars knows there's more comfort in compacts like a Toyota Corolla. While Clark has pre-ordered the SmartCar, he may still decide to go with a compact instead. Dinky-mobiles deprecate at a faster rate than compact cars. Plus, the additional fuel economy they give may not offer you as much bang for your buck as you'd get by stealing a deal on a compact.

Clark recently overheard a man at the studio talking about shopping for a new car. One question that popped out of his mouth surprised Clark: "When did the average cost of a vehicle become $35,000?" It got Clark to thinking, "What kind of cars is he looking at?" Vehicles are the best deal they've been in a long time. We choose to gingerbread them with extra features and gussy up the price. But you can still get a fantastic new car for no more than $15,000.

There's a huge market for affordable auto transportation, and Clark means really affordable. Several years ago, he told you about a vehicle called the Logan by Renault. This 4-door sedan is available in Europe fully equipped for $6,000-8,000. Meanwhile, India has a $2,500 car entering its marketplace on Jan. 10. The vehicle is being introduced by Tata Motors, a company that's set to buy Jaguar. Talk about the opposite extreme of vehicle price!! Unfortunately, these kinds of affordable vehicles aren't available stateside yet. Many people are stuck in the '80s when it comes to thinking about affordable vehicles. If the terms "low cost" and "cars" make you automatically think "Yugo," you owe it to yourself to re-examine the new wave of today's low-cost cars. But keep in mind that, as Clark recently told you, the real deals in '08 will be with used cars.

Car prices are headed into a free fall. Records show that sales were anemic in 2007 -- the lowest they've been in 9 years. Now comes word that '08 sales are expected to be even worse! So the opportunity for car buyers right now is tremendous. Car dealerships are in complete turmoil because there are simply too many of them in the United States. Manufacturers, meanwhile, are trying to guess how much they should slow production. But they won't be able to dial back quickly enough. The Financial Times reports that the best opportunities in '08 will be in used vehicles, not new vehicles. There's a huge surplus of used vehicles because of repossessions, trade-ins or leases that have ended.

While Clark loves used cars, the only danger is that you'll buy someone else's trouble. So do it right from the start: Get the vehicle inspected by an independent mechanic -- even if it's been "inspected" at a dealership such as CarMax. Always beware that you buy as is when you buy a used car. In fact, salespeople in some states may be allowed to lie to you about the past history of a vehicle. So which dealerships are trustworthy? CarMax is one company that's beloved by Clark. They researched what people hated about the industry and eliminated it from the buying process. In Europe, a man who heard about Car Max opened a clone. Now it's the fastest growing dealership chain over there. You can't go wrong when you treat people right and make everything simple, honest and clear.

Over the holiday break, Clark's executive producer Christa was in a car wreck. While she's fine, her SUV was injured. This is the same vehicle that she bought used and paid for in full about 4 years ago. While the SUV was being repaired, her insurance company gave her a minivan to run around in. Christa is one woman who normally wouldn't be caught dead in a minivan. But after driving it for 3 weeks, she fell in love with the roominess and safety features it offered for parents with young children. She phoned Clark in Las Vegas and asked him if he thought it was a good idea to buy a minivan. Clark didn't think so, nor did Christa's husband Mike. Then she saw an article in the paper about how buying 2007 minivans is a smart move right now. That's partly because this is the last year manufacturers will make surplus vehicles; going forward they'll be making them only when orders come in. When Christa looked at the byline on the article, it said Clark Howard! Turns out Clark wrote this article several weeks before the holiday season and didn't remember his own advice. So mama went ahead and got herself a Honda Odyssey minivan. She went through the Sam's Club buying service and loved the no-haggle process. She also got credit union financing that was just under 5 percent, and then the dealership was able to match the rate and offer additional incentives. But now she has a 60-month loan, which definitely pains Clark to hear!

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!

Clark continues to receive many questions about the used Honda Civic GX he just purchased. Typically, a new GX runs about $25,000 versus $17,500 for a standard Civic. But some folks have been wondering if the extra investment is worth it. One boon to buyers is that you receive a $4,000 federal tax credit when you purchase this no-pollution natural-gas vehicle. Meanwhile, operating costs are about $1.20 per "gallon," though you don't fill up with traditional liquid gas. Clark instead uses compressed natural gas, which is largely produced here in the United States. He'll report back and let you all know if his GX purchase proves to be crazy or not. Meanwhile, the government has issued new fuel economy numbers for automobiles at FuelEconomy.gov. The push to get new numbers really gained momentum when people bought the Toyota Prius and found their sticker numbers could be inflated by 30 percent. But all 2008 vehicles going forward will feature the true miles per gallon figures. Note that you get greater value for your buck when you go from a vehicle that has 15 mpg to one that has 25 mpg -- rather than going from 25 mpg to 35 mpg. It's all about ratios. So it may make sense to buy a car with good mpg versus great mpg. It's that initial leap in fuel economy that gets you the biggest bang for your buck.

Last winter, Clark first started talking about natural-gas vehicles (NGV). He loves them because they don't pollute the air and they use domestically produced fuel. His wife encouraged him to get one, so he searched on the Internet and a found used 2007 Honda Civic GX. Clark admits that this could either be a really dumb purchase or a really smart one. Honda is making about 400,000 of these cars per year, but they're only for sale in California and New York. The cost is about $25,000 for an NGV versus about $17,500 for a standard Civic. One of Clark's challenges in having an NGV is finding a place to fill it up with specially compressed natural gas. There are a lot of filling stations on the West Coast and on the Eastern seaboard down through Richmond, Virginia. But in the Atlanta area there's only one single station in a more than 200 mile radius! Luckily that station is about seven miles from Clark's home. Clark believes that as a nation we need to start thinking outside of the box about our energy needs. Relying on foreign energy suppliers who want to harm us can only weaken our nation. Clark's Honda GX is his answer to this dilemma. What's yours?

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. 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.

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.

Clark recently spoke on the show about how what happens on Wall Street affects what happens on Main Street in America. One way you may feel a pinch is in the credit card field. Dow Jones recently reported that credit card companies are starting to tighten their standards. This will happen in a number of ways: Credit limit increases won't be so common; potential customers who may have previously qualified for a card may no longer qualify; and you'll probably be seeing less balance transfer offers.

Credit card companies have historically borrowed money short-term at very low interest rates. Then they turned around to lend that money to you via your credit card at an average interest rate of about 16 percent. But now their ability to borrow at ultra cheap rates -- what's known as commercial paper -- is being squeezed. Since they don't have such easy access to money anymore they can't offer their deals to you. The credit card companies are also worried about people's ability to pay their debts. A Dow Jones survey found that a number of banks are tightening their standards one by one. This is not being done across the board, it's more of an industry trend -- so you still may see some low-interest transfer offers in your mail. The car loan field will also be clamping down too. You may be expected to have higher credit score, pay a higher interest rate or come in with a down payment on your vehicle if you want to qualify. All of these trends are signs that the pendulum is swinging back in the business world. For years we've had very low terms for borrowers. Now things are changing and some us are going to get pinched in the process.

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.

Diesels cars and other vehicles are poised to make a big comeback, according to the latest findings from J.D. Power and Associates. The survey said that one in four Americans would consider buying a diesel car; a year ago, that figure was more like one in 10. Clark remembers the diesel station wagon his family had when he was growing up. That automobile shook like crazy, had terrible acceleration and belched smoke and odor. But today's diesels are not like your daddy's diesel. Clark's driven some modern diesels throughout Europe and enjoyed great acceleration, quiet operation, good gas mileage and less pollution than a regular gas-engine car. So if you're looking for a car next year, diesel could be part of the picture. On a related note, J.D. Power also revealed stats about the reliability of vehicles after three years of ownership. Two brands tied for the top spot: the foreign-made Lexus and, somewhat surprisingly, the American-made Buick. In fact, several other American brands were toward the top of the tally, with Cadillac placing fourth and Mercury placing fifth. Meanwhile, Japanese standards like Honda and Toyota placed fifth and sixth, respectively. On the bottom of the heap were some foreign cars like Suzuki, Isuzu and Saab. But the single least reliable automobile -- based on how many problems were reported per 100 vehicles -- proved to be a Land Rover. Clark thinks it's interesting that some Japanese and European cars were selected as least reliable, while a lot of domestic rides are back on top. But perceptions take a long time to change, and people who grew up on foreign cars sometimes won't even consider a domestic vehicle.

The latest American Customer Satisfaction Index from the University of Michigan has been released. This quarterly survey has been around since 1994 and keeps tabs on the good, the bad and the ugly in multiple industries. The big news this year is that American automakers did very well. While the top automaker was foreign (Toyota's Lexus division), homegrown companies like Cadillac, Buick and Lincoln-Mercury all tied for second place. Meanwhile, Toyota's namesake division fell way behind on the tally. Clark thinks the Japanese automaker has been taking its eye off the ball lately. The Toyota business model is now geared toward growth and quantity, not quality. That accounts for why they've been issuing more recalls than ever. Fortunately for Toyota, there are some corporate initiatives in Japan to raise the quality of their namesake line of vehicles. In the computer industry, Apple is tops in customer satisfaction; Clark's wife has an Apple Macintosh that she loves. In the PC world, Hewlett Packard's HP line makes a beloved machine, yet HP's Compaq division has been voted the worst company in the industry. Meanwhile, Whirlpool continues its dominance in the appliances field, racking up its largest lead yet over the competition.

Clark made a prediction in January that ended up wrong. He said gas prices would be a lot lower by this summer. He says he really blew it on that one. However, he made another prediction several years ago that may just be turning out to be true. He predicted there would be increasing demand in the US for shared cars services. Two companies who are doing this are Zipcar and Flexcar. These are services where you can rent a car by the hour just to do your errands, and just return it to where it was parked when you're done. Gas and insurance are usually included. It's kind of like "public transit, private driving," and it's much cheaper than adding another car to the family fleet! It's expanding like wild fire to many American cities, and even to some suburban markets. Since cars are such a huge part of our daily budget, it can save you a lot of money. It's like owning 1 and 1/4 cars, instead of 2 cars, or a time share for a car. But everyone knows that's not a term Clark likes to use -- so he prefers to call it "shared ownership!"

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.

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.

Certified used cars have become overwhelmingly popular these days. With everything that the dealer’s say about their “certified used cars,” you would believe that they are a safe bet. Don’t count on it. In a recent story, one lady bought a GM certified pre-owned car that turned out to be two cars welded together! And GM has said absolutely nothing about it. The average extra price paid for a “certified used car” as opposed to one that isn’t certified is $2,000. When you are paying “certified” price but aren’t really getting a “certified” product, it is just wrong. So avoid some of the pains you can have and pay an ASE certified mechanic to take a look before you buy. It might cost a little up front, but save you a lot in the long run.

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.

More than half of all car loans in the United States are five years or longer, according to recent data. Just a few years ago, only a tiny percentage of people took out loans that long. And loans can be as long as 7 or 8 years! When you take out a long-term car loan, you always owe more on the loan than what the car is worth. It’s just how it works. Then, if you buy another car, you’ve got that loan on top of it. It’s never a good idea to take out a loan longer than five years. The longest you should have a loan is 42 months. If you can’t make the payments on a 42-month loan, you need to buy a cheaper car. That is Clark’s rule. Please put it into practice or you will be sorry.

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.