The Clark Howard Podcast – Episode Summary: "Pay Less For A Vehicle / Power Bills: Smart Meters Vs Regular Meters"

Release Date: March 17, 2025

In this episode of The Clark Howard Podcast, host Clark Howard delves into two significant financial topics: strategies to purchase vehicles more affordably and the implications of switching to smart meters for managing power bills. The discussion is enriched with listener questions, providing practical advice on a range of consumer-focused issues.

1. Affordable Vehicle Market Trends

Clark Howard begins by addressing the shifting landscape of the automotive market. Following supply chain shortages during the COVID-19 pandemic, automakers became accustomed to selling high-end, option-laden models, resulting in dealer lots brimming with premium vehicles that remain unsold.

“Automakers got addicted to selling high end models optioned out and those vehicles are sitting there unloved...”
(01:30)

He explains that this oversupply has led dealers to seek incentives from manufacturers to move these high-end models, creating an opportunity for consumers to purchase more affordable vehicles.

2. Consumer Reports’ Recommendations

Highlighting the importance of informed car buying, Clark references the annual Consumer Reports Auto Buying Guide, which identifies reliable and affordable vehicles. He provides specific examples of recommended models that offer good value for money:

• Nissan Sentra: Retailing between $18,500 to $19,600, significantly below the MSRP of $21,500.
• Subaru Crosstrek and Forester: Starting around $25,000.
• Toyota Camry: Starts at $28,000.
• Ford Maverick Pickup Truck: Begins at $27,000.
• Toyota Highlander Hybrid and RAV4 Plug-In Hybrid: Higher-end models priced at $46,000 and $44,000, respectively, praised for their exceptional fuel economy.

“Consumer Reports recommends that are more affordable. They recommend a Subaru Crosstrek that starts at 25 grand...”
(04:15)

Clark emphasizes the guide as an essential resource for prospective buyers to evaluate vehicle options based on reliability and value.

3. Costco Auto Buying Program

Introducing the Costco Auto Buying Program, Clark highlights its benefits for consumers seeking a transparent and hassle-free car purchasing experience. This program enforces a non-negotiated pricing policy, eliminating common dealership tactics like pressure selling and hidden fees.

“Costco has terms and conditions that the dealers have to live by non negotiated price. No games, no gimmicks, no cons...”
(07:45)

He praises the program for its straightforward process, allowing buyers to know the vehicle cost upfront and ensuring dealers adhere to fair practices. Clark directs listeners to a guide on his website for more information on leveraging this program.

4. Dealing with Dishonest Dealers

Clark warns listeners about unethical dealership practices, specifically addressing a tactic known as "roofing your keys." This involves dealers intentionally losing a customer's car keys to prolong the sales process and pressure the buyer into an unfavorable deal.

“Roofing is a trick that car dealers use. Not all car dealers, just crooked ones...”
(09:15)

He advises consumers to negotiate deals online to retain control over the buying process and avoid falling victim to such deceitful maneuvers.

5. Listener Questions and Advice

The episode features several listener questions, each tackled with Clark’s characteristic practicality:

a. Car Repair Decision: Catalytic Converter Replacement

Listener: Steve from Connecticut
Issue: Whether to replace a catalytic converter costing up to $3,350 on a high-mileage 2006 Honda Accord.

“If you spend three grand on this catalytic converter, how many months payments is that on a typical vehicle loan? You know, four.”
(10:40)

Advice: Clark suggests that the vehicle’s value exceeds the repair cost and recommends proceeding with the replacement, especially if the car is mechanically sound otherwise.

b. Electric Vehicle Trade-In Considerations

Listener: Dwight from Maryland
Issue: Timing the trade-in of a 2021 Model X for a 2025 Gen 2 Rivian 1S amid depreciation concerns and existing incentives.

“Do we know how many miles the Model X has?”
(13:17)

Advice: Clark advises consulting the Consumer Reports on Rivian's reliability and considering the depreciation trends of Tesla vehicles. He suggests waiting for a used Rivian if concerned about rapid depreciation but acknowledges the benefits of current incentives for new purchases.

c. Avoiding Scams After Public Complaints

Listener: Mark from Florida
Issue: Nearly falling victim to a scam after publicly complaining about Hertz on social media.

“I thought I was okay because I had initiated contact, but then I realized I hadn't.”
(14:54)

Advice: Clark highlights the dangers of exposing personal grievances publicly, as it can attract scammers. He recommends using reputable organizations like Elliot.org for executive-level contacts at problematic companies to resolve issues without falling prey to fraud.

d. Smart Meters vs. Regular Meters

Listener: Sally French
Issue: Evaluating the benefits and drawbacks of smart meters for managing power bills.

“Your power company likely has installed what are known as smart meters at your residence...”
(19:49)

Advice: Clark explains that smart meters offer time-of-use pricing, which can be advantageous for individuals who can shift their energy usage to off-peak hours. However, for households with high daytime energy consumption, traditional plans might be more cost-effective. He underscores the importance of assessing one’s lifestyle and energy usage patterns before deciding.

e. Home Safety Devices from State Farm

Listener: Ken from Michigan
Issue: Considering the installation of TING fire safety devices offered by State Farm.

“Take the ting. The ting.”
(26:58)

Advice: Clark endorses the TING devices for their ability to provide early warnings of electrical fire hazards, enhancing home safety without additional insurance discounts.

f. Term Life Insurance for Spouse

Listener: Kimberly from Tennessee
Issue: Whether to purchase term life insurance for a spouse who had a recent heart attack.

“At 69, the term life policy that will normally be available...”
(27:27)

Advice: Clark advises evaluating the financial necessity of the policy, considering factors like potential income replacement. He notes the challenges of obtaining affordable coverage at older ages and recommends consulting with a life insurance agent to explore options.

g. Long-Term Disability Coverage

Listener: Nick from Iowa
Issue: Deciding on supplemental long-term disability insurance given existing employer-provided coverage.

“...you may be able at a very low additional cost with the existing policy to add on that additional 10%...”
(30:29)

Advice: Clark suggests maximizing employer-provided disability benefits before considering supplemental policies. He recommends directing additional funds towards savings or a Roth IRA if supplemental insurance premiums are prohibitively expensive.

6. Conclusion

Clark Howard wraps up the episode by reiterating the importance of informed financial decisions, whether it’s purchasing a vehicle or managing energy costs. He encourages listeners to utilize available resources, such as the Consumer Reports Auto Buying Guide and the Costco Auto Buying Program, to enhance their financial well-being. Additionally, he reminds listeners of the free one-on-one advice available through the Team Clark Consumer Action Center for personalized financial guidance.

“I hope that you have learned something that will help you pack a punch in your wallet...”
(32:45)

This episode offers valuable insights into making smarter financial choices in vehicle purchases and energy management, supported by practical advice and real-life listener scenarios.