The Clark Howard Podcast: Episode Summary

Title: Clark’s Auto Loan Directive / Skimmer Scam Prevention
Host: Clark Howard
Release Date: June 2, 2025

Introduction to the Episode

In this engaging episode of The Clark Howard Podcast, host Clark Howard delves into two pressing financial concerns: the alarming trend of extended auto loans and the increasing sophistication of skimmer scams. Throughout the episode, Clark provides actionable advice, answers listener questions, and shares insights to help consumers make informed financial decisions.

Clark's Take on Extended Auto Loans

Timestamp: [00:57]

Clark opens the discussion by addressing a concerning trend in vehicle financing. Referencing a report from Edmunds, he reveals that "one in five vehicle loans being taken out are seven-year loans" ([00:57]). He emphasizes the financial pitfalls of such long-term loans, highlighting that borrowers often end up "always owing more by many, many, many thousands of dollars than what the vehicle is worth."

Clark criticizes the auto industry's response to rising vehicle costs, advocating for more affordable vehicle options. He praises initiatives like Jeff Bezos's Slate project and Ford's Maverick pickup truck, both aiming to offer reliable new vehicles under $20,000. "There's a hunger in the marketplace for more affordable vehicles," he asserts, urging consumers to either keep their current vehicles or opt for cheaper alternatives to avoid financial strain.

Listener Questions and Advice

1. Transferring Gift Card Balance

   • Caller: Nancy from Alabama
   • Timestamp: [06:12]

   Nancy shares her positive experience with converting a Verizon gift card balance into cash, attributing her success to listening to Clark's advice. She states, "I love that I've never seen this with any other gift card." Clark responds by expressing his disdain for refund cards due to the concept of "breakage", where unused funds go unclaimed. He acknowledges innovative methods, like transferring balances to pay utility bills or converting them to Amazon gift cards, enhancing their usability ([07:07]).

2. Jewelry as an Investment

   • Caller: Anonymous
   • Timestamp: [07:37]

   An anonymous listener discusses the appreciation of his wife's jewelry, noting a 386% increase in appraised value over eight years. He inquires about jewelry as a viable investment. Clark advises caution, explaining that while jewelry can appreciate in value, the buy-sell spread is typically unfavorable for consumers, making it a less reliable investment compared to other assets. He recommends insuring jewelry for replacement rather than viewing it as a financial investment ([09:10]).

3. Selling a Term Life Insurance Policy

   • Caller: Cindy from Georgia
   • Timestamp: [10:04]

   Cindy seeks advice on selling her $1.2 million term life insurance policy, which is set to expire in three years after her business loan was paid off. Clark clarifies that selling policies is generally feasible for permanent life insurance, not term policies like Cindy's. He suggests either continuing the policy until expiration or exploring options to convert it if available, emphasizing that selling a term policy isn't typically practical ([10:22]).

Skimmer Scam Prevention

Timestamp: [15:01]

A significant portion of the episode focuses on the rising threat of skimmer scams. Clark explains that criminals attach skimming devices to card readers, such as those at gas pumps, to capture card information and PINs. He warns that debit cards are particularly vulnerable, as compromised information can lead directly to unauthorized access to one's checking account.

Key preventative measures discussed include:

• Using Credit Cards Over Debit Cards: Clark advises, "Unless your finances only permit you to use a debit card, do not use a debit card," due to the limited protections compared to credit cards.
• Ensuring Cards Have Chips: He emphasizes the importance of chip-enabled cards, stating, "If your debit card provider will not provide you a card with a chip in it, they don't care about you at all." Using chip-and-PIN transactions greatly reduces the risk of skimming.
• Avoiding Pay-at-the-Pump: Clark recommends entering gas at the counter to minimize the risk of using a tampered device.

Nancy adds to the discussion by highlighting the dangers of QR code scams in parking payments, where fraudulent codes redirect payments to criminals instead of legitimate services. She suggests verifying the parking app through official channels rather than solely relying on scanned codes ([19:44]).

Additional Listener Questions

1. Renting a Car vs. Taking a Ferry to Nova Scotia

   • Caller: Susan from Maine
   • Timestamp: [20:27]

   Susan contemplates whether to rent a car in the U.S. or Canada when taking a ferry to Nova Scotia, which costs $400 for a round trip with her vehicle. Clark advises using services like Costco Travel to compare rental costs and suggests that renting in Canada is likely more economical. He recommends calculating all associated costs, such as potential parking fees at the ferry terminal, to make an informed decision ([20:38]).

2. Annual Travel Insurance Policies

   • Caller: Dennis from Florida
   • Timestamp: [22:00]

   Dennis asks about the benefits and drawbacks of annual travel insurance policies versus per-trip policies. Clark points listeners to an article on Clark.com that delves deeper into the topic. He notes that while annual policies can save money for frequent travelers, the claims process can be more complex. Clark emphasizes the importance of understanding what each policy covers and aligning it with one's specific travel needs ([22:22]).

3. Airline Fare Sales Across Different Classes

   • Caller: James from Georgia
   • Timestamp: [23:27]

   James inquires whether airline sales discounts apply uniformly across all service classes or if they're restricted to economy classes. Clark explains that discount patterns vary by airline and route. For international flights, especially to regions like Europe, sales often span all classes, including business. However, for domestic flights, discounts are typically focused on economy, with premium classes seeing fewer deals. He highlights a trend where business class fares to Europe are dropping significantly, making them more accessible due to decreased business travel demand ([23:50]).

Conclusion

In wrapping up the episode, Clark reiterates the importance of being vigilant against financial pitfalls, whether it's avoiding exorbitant auto loans or protecting oneself from sophisticated scams. He underscores his mission to empower listeners with knowledge to "save more and spend less and always avoid getting ripped off." The episode serves as a comprehensive guide for listeners to navigate complex financial decisions and safeguard their personal finances effectively.

Notable Quotes

• Clark Howard: "If you can't afford the payment on a 4-2 month auto loan, you can't afford that vehicle, period. Cold fact." ([00:57])
• Nancy: "I love that I've never seen this with any other gift card." ([06:12])
• Clark Howard: "Unless your finances only permit you to use a debit card, do not use a debit card because you don't have the protections with it that you have with a credit card." ([15:01])
• Clark Howard: "There's a hunger in the marketplace for more affordable vehicles." ([02:30])
• Clark Howard: "Don't be taken this summer by [the skimmer scam]." ([20:27])

This detailed summary captures the essence of the episode, highlighting Clark Howard's insights and the valuable advice provided to listeners on managing auto loans and protecting against financial scams.