The Clark Howard Podcast Summary Episode: Clark Answers His Critics on Clark Stinks / Bumpy Ride For Car Buyers
Release Date: May 16, 2025

Introduction

In this engaging episode of The Clark Howard Podcast, host Clark Howard addresses feedback and criticisms from his listeners in the segment titled "Clark Stinks." He delves into various personal finance topics, providing insightful responses and valuable advice. Additionally, Clark navigates the complexities of the current car market, offering guidance for both new and used car buyers.

Clark Stinks: Addressing Listener Criticisms

1. 401(k) vs. Roth 401(k) Employer Matching (00:40 - 04:30)

A listener highlighted an unexpected issue regarding their employer's retirement plan:

Listener [02:00]: "I made the decision to put all my future 401k contributions in my employer's Roth 401k plan. Soon I noticed stopping getting the employer match... there is no match for a Roth 401k contributions."

Clark expressed surprise at this practice:

Clark Howard [02:42]: "I've never heard of an employer doing that distinction. What would be their motivation? That's weird."

After further discussion, Clark acknowledged the unusual nature of this policy and provided clarification on Social Security benefits, emphasizing the importance of optimizing spousal contributions:

Clark Howard [08:25]: "...if your spouse earned less than you did over the years, there's a direct benefit to a spouse taking Social Security at 62 regardless of when the other takes Social Security, which is usually a benefit to later for you to take it."

2. Buy Now, Pay Later Concerns (03:08 - 05:27)

Another listener critiqued Clark's stance on installment payment schemes:

Listener [03:09]: "I agree with your disdain for pay in four schemes, but one small correction on the doordash thing..."

Clark responded by highlighting the risks associated with such payment methods, including impulsive spending and credit issues:

Clark Howard [04:30]: "...paying for gets people to spend money impulsively... it's messing up their credit... It's just all part of one big blob of a problem with people borrowing for lifestyle."

3. Virtual Credit Cards for Settlements (05:27 - 06:19)

A listener suggested using virtual credit cards for settlements:

Listener [05:27]: "...use mine to buy an Amazon gift card... get a reduction on my next purchase."

Clark addressed this by explaining the drawbacks and potential fraud risks associated with stored value cards:

Clark Howard [05:43]: "...these are stupid stored value cards... this was in response to somebody having an idea of how to offload a small amount of money."

4. International Travel Phone Plans (06:19 - 07:41)

Joanne highlighted alternative phone plans for international travelers:

Listener [06:19]: "My T Mobile plan has free Internet and texting in 125 countries... Fidelity has a debit card with no foreign transaction fees."

Clark acknowledged these alternatives but pointed out limitations, such as data caps:

Clark Howard [06:47]: "The problem with the T Mobile International is you're capped at five gigs of data overseas... Google Fi just doubled the amount of data you could use to 100 gigabytes."

5. Health Insurance and Social Security for Retirees (07:41 - 09:35)

CJ expressed disappointment in Clark's previous response regarding health insurance for a retiree's spouse collecting Social Security:

Listener [07:41]: "...you never answered if it might be advantageous for my spouse to collect at 62."

Clark rectified his earlier oversight by providing a comprehensive answer:

Clark Howard [08:25]: "...if your spouse earned less than you did over the years, there's a direct benefit to a spouse taking Social Security at 62... it works out for both of you."

6. IRA for Charitable Giving (09:29 - 11:29)

Kristen pointed out an omission in Clark's advice regarding IRAs:

Listener [09:29]: "...use the IRA, RMDs and distributions to do all their charitable giving... planning to do with my IRA once I reach the RMD age."

Clark expanded on the benefits of using IRAs for charitable donations, mitigating tax implications:

Clark Howard [10:21]: "Using the IRA for people who aren't aware required minimum distributions... you have to start taking money from your traditional IRA... you are allowed this escape hatch if you are in a position to do so, to give a charitable donation... it doesn't increase your tax bill."

7. Paying Bills by Check (11:29 - 14:23)

Deborah raised concerns about Clark's strong stance against paying bills by check:

Listener [11:29]: "...you don't need comp and collision coverage on an older car. But what if... you have to write down your card number... making me think that the bulk of a population is having their mail stolen daily."

Clark underscored the dangers of mailing checks compared to electronic payments:

Clark Howard [11:54]: "...writing a check that gets stolen in the mail can actually end up with you being arrested... we are the only country in the developed world where people still routinely write paper checks... Any way you can avoid writing a paper check... is better than sending a paper check."

Bumpy Ride For Car Buyers

1. Current Car Market Challenges (16:23 - 21:58)

Clark discussed the tumultuous state of the car market, influenced by tariffs and White House policies:

Clark Howard [16:23]: "Car markets rough, tough the tariffs, how they're going to play out... it's hard for manufacturers, hard for dealers, hard for you and me as consumers to know what in the world to do."

He advised listeners to assess their current vehicle's condition before considering a purchase:

Clark Howard [16:50]: "If your vehicle that you're driving now works just fine, don't go to a car lot... usually, let's face it, we tire out of a car before it's tired out."

2. New vs. Used Car Purchases (16:23 - 21:58)

For those needing a new car, Clark highlighted the benefits amidst high inventory levels, except for brands like Toyota:

Clark Howard [16:23]: "Except for Toyota, which has no inventory of pretty much anything, you have an opportunity... it's going to take a while to wean off that inventory."

Regarding used cars, Clark emphasized caution, especially with Certified Pre-Owned (CPO) vehicles:

Clark Howard [19:10]: "The dealers, the manufacturers push CPO so hard... Why do manufacturers have certified pre-owned? Because they're trying to boost the value of the vehicles coming back from lease."

3. Certified Pre-Owned (CPO) Vehicles (19:00 - 21:58)

Clark explained the dual nature of CPO programs, acknowledging both trustworthy dealers and those that might cut corners:

Clark Howard [19:50]: "There are dealers that really thoroughly check the vehicle... and then there's the dealers that don't do those things and sell it as certified pre-owned."

He offered strategies to protect oneself when purchasing a used vehicle:

Clark Howard [20:50]: "With any used vehicle you have it checked out by an independent mechanic... run a vehicle title history... unless you're buying where they provide total coverage... the mechanic is your true serum."

Clark also compared return policies of major used car dealers:

Clark Howard [21:00]: "CarMax has gone from a 7-day return rate... Carvana is 7 days... but most dealers, when you buy a used vehicle... you're stuck with whatever problems it has."

4. Listener Questions on Car Buying and Ownership

a. High Documentation Fees on Lease Buyouts (21:58 - 24:51)

Tom from Colorado inquired about excessive documentation fees when buying out a leased car:

Listener [21:58]: "The fee ranges between dealers with the highest being $800... can I contest this fee or am I out of luck and have to pay it?"

Clark critiqued the dealer practices and suggested broader shopping as a potential solution:

Clark Howard [22:39]: "Unless there's a geographic restriction in your lease, you could fee shop elsewhere... think about all the people that are buying new vehicles anywhere in the country... This shows why the dealer system is anti-consumer."

b. Insurance for Older Family Vehicles (24:51 - 25:36)

Kate from Virginia sought advice on whether to maintain comprehensive and collision coverage on an older family truck:

Listener [24:51]: "Do you think it makes sense in our situation to have more coverage even though the truck is old?"

Clark evaluated the value of the vehicle and the cost-benefit of maintaining coverage:

Clark Howard [25:31]: "Depending on the condition on a 2010, you get somewhere between about six to ten grand... dumping collision comprehensive at this point on that Tacoma would not be a good idea."

c. Paying Off Car Loans Early (25:31 - 27:51)

Fiona from California asked about the impact of paying off a car loan early on her daughter's credit score:

Listener [25:31]: "...how would paying off this car loan quickly affect her credit?"

Clark encouraged paying off the loan, noting minimal impact on credit scores and highlighting the benefits:

Clark Howard [27:51]: "Pay that thing off, be done... She paid the loan as agreed. She'll be good. She has other forms of credit. She's good to go."

He also addressed dealer incentives to keep loans active and reassured listeners about credit implications:

Clark Howard [27:51]: "...kickbacks they get from the manufacturer only may stay in effect as long as the loan stays in effect for a certain period of time... her credit score is already likely good, but getting it higher."

Conclusion

In this episode, Clark Howard adeptly navigates listener criticisms, providing clarifications and enhancing his financial advice. He offers pragmatic solutions for navigating the uncertain car market, emphasizing the importance of informed decision-making whether purchasing new or used vehicles. Clark's blend of addressing personal finance concerns and practical car buying strategies equips listeners with the knowledge to make empowered financial choices.

Notable Quotes:

• Clark Howard [04:30]: "It's all part of one big blob of a problem with people borrowing for lifestyle."
• Clark Howard [11:54]: "We are the only country in the developed world where people still routinely write paper checks."
• Clark Howard [22:39]: "This shows why the dealer system is anti-consumer."

For more insights and personal financial advice, visit Clark Howard's website and explore resources tailored to help you save more, spend less, and avoid ripoffs.