10.13.25 The Cost Of Streaming TV / Can You Trust CPO Vehicles?

Summary

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The Clark Howard Podcast – October 13, 2025

Episode Theme:
This episode is dedicated to two pressing consumer finance topics:

1. The rising costs and evolving options in the streaming TV market—how to cut through the confusion and save money on your entertainment.
2. The truth behind Certified Pre-Owned (CPO) vehicles—can buyers really trust the CPO label, or has the industry lost its way?

Clark Howard and his producer Krista engage in lively discussion, answer listener questions, and break down how to spend smarter and avoid getting ripped off whether you’re paying for TV or buying your next car.

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I. The Cost of Streaming TV: Are You Getting Entertainment or Being Taken for a Ride?

[00:36–11:51]

The Big Picture

• Streaming TV is now considered a "monthly essential" by many Americans, but costs have soared. According to both a Credit Karma survey and Clark’s own polling, people increasingly see services like Disney+, Hulu, and Netflix as necessary expenses (00:36–02:40).
• Major price hikes and the emergence of ad-supported vs. ad-free plans are confusing consumers and squeezing budgets. Disney, for example, has raised prices multiple times in recent years, with a 50% premium to avoid ads (02:40–04:50).

Key Discussion Points

• Clark’s View:
  Streaming is not an essential compared to food, shelter, health, or safety, but media companies have successfully created the perception that it is.

  "What's essential? Your health, food to eat, right? Roof over your head... Being able to watch Hulu, oh man. That's an essential thing, apparently." — Clark Howard [01:04]

• Price Comparisons:

  • Disney+ with ads: $11.99/month; without ads: $18.99/month—a 50% increase.
  • Bundles (e.g., Disney+ and Hulu): Same pattern—~50% more for no ads.
  • Netflix and others follow similar structures, with significantly cheaper ad-supported options (03:08–04:05).

• Consumer Preferences:

  • Clark’s own survey found two-thirds preferred cheaper, ad-supported streaming over higher-priced, ad-free versions (04:39).
  • Krista and teammate James emphasize their strong dislike for ads, even stating it would make them unsubscribe (05:05).

    "I tried the Hulu with ads for a long time... I wanted to really watch one show... I subscribed without ads... watched it so much faster, then I killed the subscription. It's brutal." — Krista [05:11]

• Finding Savings:

  • Clark uses ad breaks productively—walking, grabbing snacks, etc. [04:15]
  • Free, legal alternatives:
    • Free Ad Supported TV (FAST) services offer tons of content at no cost, sometimes including live channels.
    • Using a traditional antenna can unlock many live, free local channels, just "like it's 1970." [09:21]
    • Full guide to FAST available at Clark.com.

    "Don't feel that you are a prisoner to these giant monster media companies... There are alternatives." — Clark [10:33]

• Budget Advice and TV FOMO:

  • Krista purchases a one-month, no-ads subscription to binge a show quickly, then cancels—"I always weigh it—what is my entertainment budget for the month?" [11:28]
  • Clark admits sometimes he's "too cheap" and suffers consequences—like having several car break-ins because he refuses to pay for parking [11:51].

Memorable Moment

• Krista's Dog Injury Tangent (06:02–08:11):
  Briefly off-topic, Krista explains she’s receiving IV antibiotics at home due to a dog fight injury. In a financial twist, she pays cash because it’s much cheaper than using insurance—even at the cost of not applying to her deductible.

  "It's $50 a day without insurance and $150 a day with insurance... I'm doing it for many weeks." — Krista [08:36]

  • Clark’s advice: Always compare cash-pay vs. insurance prices on medical treatments.

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II. Listener Q&A (Consumer Protections, Cars, and Travel)

[12:16–31:30]

1. Package Delivery Scam—How to Protect Yourself

• Issue: Smokey in New Hampshire fell for a fake UPS scam and gave out personal information.
• Clark's Guidance:
  • "Do not respond" to package delivery texts. Always check independently.
  • Most crucial: Freeze your credit at Equifax, TransUnion, and Experian for free.

    "Do credit freeze. It is completely free and easy to set up." — Clark [13:23]

  • Never pay for “credit lock” services.

2. Window Seat Wars—Who Controls the Shade?

• Tim’s Dilemma: Paid extra for a window seat and wanted to view Greenland, but flight crew and another passenger wanted the window closed ([14:26]).
• Clark’s Take:
  • It’s your right as the window passenger to enjoy the view, especially on a daytime flight.
  • Clark praises Tim’s consideration with his makeshift shade but disapproves of other passengers policing his blind.

    "It was disrespectful, actually, in my opinion of the passenger... Not their right." — Clark [16:12]

3. When Should You Say Goodbye to an Old Reliable Car?

• Ron’s 2001 Honda Civic with 274,000 miles needs a $3,000 clutch.
• Clark’s Advice:
  • The repair exceeds the value of the vehicle; time to buy a new (or newer) car.

    "To spend three grand on a repair on a vehicle that is worth maybe a thousand or so dollars, I would let it go." — Clark [18:59]

  • Prepare for a learning curve with modern cars’ tech features.

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III. The Truth Behind Certified Pre-Owned (CPO) Vehicles

[21:53–26:42]

The CPO Illusion

• History: CPO started with luxury brands to maintain a stream of new-vehicle buyers through leases, then reselling those cars with refurbishing, inspections, and warranties (21:53–22:51).
• Current Risks:
  • Now, nearly every brand and price level offers a CPO program, but quality and trust have eroded.
  • Dealers—not manufacturers—often handle certification, leading to unchecked abuses and shortchanging customers (23:42).

    "The problem is in the details… The vehicles are supposed to be fully refurbished... but what keeps happening again and again... is people buy CPOs and… it turns out they bought something that has not been properly checked out, not properly reconditioned." — Clark [23:42]

  • Some CPO cars have serious, undisclosed damage. The promised inspection/warranty often proves hollow.

Clark’s Hard Rule:

• ALWAYS have any used or CPO car inspected by your own mechanic before purchase.
  • If the dealer resists, "You do not want that vehicle, you cannot trust that purchase." — Clark [25:34]
• Outcome: The CPO label no longer guarantees quality. Buyer vigilance is still required.

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IV. More Listener Questions: Warranties, Subscriptions, & Costly Repairs

1. Are Tesla’s Extended Warranties Worth It?

• Brad in Ohio’s Dilemma: Should he pay $50/month for Tesla’s manufacturer-extended warranty on a Model 3?
• Clark’s Reasoning:
  • It’s more acceptable if purchased from the automaker—not a third-party—as Tesla repair costs can be high and options for independent repair are limited.

  "If the $50 a month gives you that peace of mind to keep it on the road, then I'd say in this case that would be worth doing." — Clark [28:01]

2. Car Wash Memberships—Worth It?

• Listener Pushback: Robert in Oklahoma argues he uses his car wash membership enough to justify the cost.
• Clark’s Response: You are the exception; most consumers don’t use it enough to offset the price.

  "You're being subsidized by all the people that don't benefit from it... For you, this works. Just know you are the exception to the rule." — Clark [29:44]

3. Costly Car Repairs on High-Depreciation Models

• Rick in Oregon’s Audi A6: $10,000 repair needed on a 2017 with 78k miles—what to do?
• Clark’s Considered View:
  • If the cost is less than the post-repair value and you plan to drive for a year or two, proceed.
  • Check Consumer Reports or similar resources for reliability data before deciding.

  "The tipping point is generally when the cost of a repair exceeds the [car’s] remaining value... You're not close to that down at like 50 cents on the dollar." — Clark [31:12]

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V. Final Thought: Empowerment Through Knowledge

• Clark wraps up by reminding listeners about Team Clark’s free resources, including the Consumer Action Center for personalized financial help ([31:48]).

"Everything we do is about empowerment through knowledge... so you can save more, spend less, and never let anybody rip you off." — Clark [end]

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Notable Quotes Quick Reference

| Timestamp | Speaker | Quote | |-----------|-------------|------------------------------------------------------------| | 01:04 | Clark | "What's essential? Your health, food...watch Hulu...That's an essential thing, apparently." | | 05:11 | Krista | "I just...I'd rather just not even have it and just, like, watch without ads sometimes." | | 08:36 | Krista | "It's $50 a day without insurance and $150 a day with insurance...I'm doing it for many weeks." | | 10:33 | Clark | "Don't feel that you are a prisoner to these giant monster media companies. There are alternatives." | | 13:23 | Clark | "Do credit freeze. It is completely free and easy to set up." | | 16:12 | Clark | "It was disrespectful, actually… Not their right." | | 18:59 | Clark | "To spend three grand on a repair on a vehicle that is worth maybe a thousand or so dollars, I would let it go." | | 23:42 | Clark | "The problem is in the details… people buy CPOs and… it turns out they bought something that has not been properly checked out..." | | 28:01 | Clark | "If the $50 a month gives you that peace of mind to keep it on the road, then I'd say in this case that would be worth doing." | | 29:44 | Clark | "You're being subsidized by all the people that don't benefit from it... Just know you are the exception to the rule." | | 31:12 | Clark | "The tipping point is generally when the cost of a repair exceeds the remaining value... You're not close to that..." | | [end] | Clark | "Everything we do is about empowerment through knowledge... save more, spend less, and never let anybody rip you off." |

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For More:

• Visit Clark.com for guides on streaming TV, credit freezes, and more.
• Check out Clark's Consumer Action Center for one-on-one financial advice.

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This summary captures the episode’s rich financial advice, witty banter, actionable consumer tips, and cautionary tales—ideal if you missed the show or want a fast reference for Clark’s latest insights.

Transcript

[Shingles Patient]

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[Clark Howard]

The Clark Howard Show. You know, our mission is to serve you with advice and information that empowers you so you make better financial decisions in your life. And today's episode. Is streaming TV a monthly essential? Is it something you just gotta have? You wouldn't believe how many people say, yes, it's essential. So how are you going to pay less? We talk about that and later. Cpo, big deal in the car business. Certified pre owned. What does it mean? More importantly, what does it not mean? So credit karma did a survey. Survey says people consider streaming to be an essential, non essential. What? Okay, what's essential? Your health, Having food to eat right? Roof over your head. I mean those are things that are essential. Being safe, being able to watch Hulu. Oh man. That's an essential thing. Apparently. I mean the content that's available from the various streaming services we now look at as something that is core and essential to our lives. And so look what's happened. I mean Disney's been much in the news for raising prices. Is it four times in four years or five times in five years? Something like that. And what was a deal is now a non deal deal. So they've got their new increases that are confusing as all get out because you can get standalone things or you can get bundled things. But then again, what's happening? And it's not just Disney, it's from the various streaming services. There's this new wider and wider split between the ad supported version and the non ad supported version. Commercial free or in the case of Amazon where they have limited commercials or no commercials for their prime. So you got to make that choice. Like for example, Disney plus. Gosh, remember it was like nothing when it first launched and Disney lost. I don't know if they lost more than a billion dollars or whatever trying to get people hooked on Disney. And now The Disney with ads, 11.99amonth. Disney without ads, 1899amonth. Come on. I mean 50% more. 5, 0% more to not watch ads. And then you look at the bundles. The Disney Plus Hulu bundle with ads 12.99 without ads. 1999 again, 50% more. You're getting the pattern right? And this, again, not a Disney thing. This is. Everybody is going this kind of thing. We have Netflix with ads, and it's less than half the cost, if I remember right, of Netflix without ads. And so I'm happy to put up with the ads because I use the ads as a break. Go get a snack or go use the restroom or go. I'm always walking steps because my goal is to walk seven and a half miles every day. Used to be nine, but my knee was bothering me. Doesn't bother me at seven and a half miles a day. But anyway, I make good use of the commercial minutes. But we did a [e-mail] and roughly two to one people preferred the lower prices with ads than the higher prices without. Now, Krista, you spoke very strongly that you'd rather not watch than have to put up with ads.

[Krista]

In our show meeting first, James on our team said that, which might be obvious. He was like, I'd rather just whatever, but I hate the ads. I do. I tried the Hulu with ads for a long time, and I was like, you know what? I wanted to really watch one show a series. So for one month, I subscribed without ads. I paid the higher price. I watched it so much faster, and then I killed the subscription. I just. It's brutal. So I'd rather just not even have it and just, like, watch without ads sometimes. Because when I watch, like, if I watch live tv, like, you know, football right now it is. Yeah, but you're really right. I know I'll get a bunch of Krista stinks whatever comments on this, and that's fine.

[Clark Howard]

No, it was 2 to 1. So a lot of people in our poll were with you. A third of people were with you that, that they would rather not have ads.

[Krista]

But I like your ads.

[Clark Howard]

Don't bother me. I learned from them.

[Krista]

But I like your idea. I hate them. And it's always the same ads over and over and over. But I like your idea of, like, coming up with something. I'm like, why don't I do, like, crunches or something during the ads? Like, that's. That's a good idea. If I had a challenge, I'd probably be more patient with it.

[Clark Howard]

So Krista is exercise and strength training obsessed.

[Krista]

Oh, my God. Not right now. I can't do it right now.

[Clark Howard]

Well, Krista has not been able. Can you show your little pinky for people who watch the YouTube show.

[Krista]

My pointer finger. Yeah.

[Clark Howard]

Yeah. So Krista tried to break up a fight between her two dogs and almost lost the index finger.

[Krista]

That's not true. Did not almost lose it.

[Clark Howard]

Were you, were you not told that you could end up losing part of your finger?

[Krista]

That if I didn't do the treatment, I'm doing that. It is a possibility because a tooth went through my nail bed and then also chipped my bone. Chipped the bone inside. So once you have a bone involved, then they really worry about an infection with the bacteria that dogs carry on their teeth. And so I am doing IV antibiotics for several weeks.

[Clark Howard]

Yeah, you have a pick in you?

[Krista]

I have a pick line. And yeah, lots of fun. Had. No, don't ever try to break up a fight between two dogs. That's the lesson.

[Clark Howard]

Your own dogs.

[Krista]

But yeah, they said if I didn't do all this, then sometimes, as the infectious disease doctor said to me, sometimes we have to. And he made like a snipping, snipping thing toward the top of my finger when I was like, do we really need to do this heavy of an antibiotic for that long? And he was like, yeah, do you like your finger?

[Clark Howard]

So that's why for those of you who watch the YouTube show version, that's why Krista is wearing long sleeves.

[Krista]

Yeah.

[Clark Howard]

Because she doesn't want people seeing all her medical gear.

[Krista]

Right. It's not pretty.

[Clark Howard]

Does it hurt?

[Krista]

No.

[Clark Howard]

Does your finger hurt a little bit still?

[Krista]

Yeah. I mean, it is, you know, it's going to take a while to heal probably. And I'm left handed, which kind of stinks because it was on my left hand, but whatever. First world problem for sure. I mean, how cool is it that we can do antibiotics at home now? I mean, years ago I would have had to be in the hospital.

[Clark Howard]

Wait, wait, another. Another point. And I wasn't done with the streaming stuff.

[Krista]

Oh, I'm sorry. How did this happen? I apologize.

[Clark Howard]

So Krista is paying for these treatments in cash?

[Krista]

Yeah.

[Clark Howard]

Because as so often with the weird economics of medicine, it's cheaper for you, as you explain, to pay in cash than it is to use your insurance and pay the patient portion through insurance that the cash price is actually cheaper.

[Krista]

It's a third of the price. I mean, the only disadvantage is it doesn't go toward my deductible. But I mean, it's $50 a day without insurance and it's 150 a day with insurance and I'm doing it for many weeks. So I decided I would rather just forego Worrying about my deductible.

[Clark Howard]

So now that is the thing. I'm glad you mentioned that because as people posted before, don't forget, you're not building up money towards fulfilling your deductible for the year. Krista's hoping she doesn't get anything else.

[Krista]

Oh my God, the year on. There's no real word here. I'll knock on my head because my head's made of wood.

[Clark Howard]

Yeah, the plastic. Plastic. Anyway, going back to streaming really quickly, wanted to say, and I don't mention fast enough, free ad supported television. You can watch so much content. A lot of it is actually, there's actually live content you can watch now through free ad supported TV. We have a, a [e-mail] that walks you through fast. So it's not just a matter of I'm going to pay or I'm not. And obviously I'm going to pay because I want to watch this, that and the other. There's so much you can watch in this gray area that's legal with the free ad supported streaming services. And then as we've talked about, we talked about Friday, the antennas, how much free content you get just going back to like it's 1970 and plugging an antenna into your TV. There's so much you can get free. So don't feel that you are a prisoner to these giant monster media companies. Disney, Comcast, who else are there? Paramount, who am I missing? I don't know. I don't know the big, I don't know all the streaming things.

[Krista]

But I mean there's the, well, Netflix and all those. Hulu, but they're all like Hulu's own.

[Clark Howard]

Netflix is his own thing. Hulu's owned by Disney. Yeah, yeah. So you got these very small number of gigantic corporations that own the funnel of the various paid streaming services. And there are alternatives. And that's what I want you to think about if your budget's tight or TV's not that important to you. And you know, Krista said, well, I had to sign up for. What was it? For the month? Hulu. Hulu for a month.

[Krista]

I wanted to watch the bear, whatever that.

[Clark Howard]

I don't know what that is, but if you waited two years, you'd be able to watch on one of the fast services for free.

[Krista]

That could be true.

[Clark Howard]

And would it matter if you saw it two years from now versus now?

[Krista]

But then again, I probably paid for one month what I'd pay to go to a movie. And I got all this ser. I watched this entire series of shows and it was very entertaining. So I always weigh it, like, what? You know, what is my entertainment budget for the month? And then I did kill the subscription. I mean, whatever. I'm not Clark Smart. Okay?

[Clark Howard]

I didn't say that.

[Krista]

It's true though. I'm saying it about myself.

[Clark Howard]

No, I, I, There are times that I am too cheap.

[Krista]

What? Who did I send that to? Lane?

[Clark Howard]

No, I just have to know that about myself. Think about the fact that I've suffered six car break ins over my adult lifetime because I don't like to pay for parking. And I'll park in very marginal areas, then I'll come back and the car has been broken into.

[Krista]

That's true. Okay, let's go to questions. Yeah, Smokey in New Hampshire says I fell for a ups, tried to deliver a package scam via text message and gave the scammer my name, email, phone and credit card info. I can't believe I was so dumb. Fortunately, I know, I know we shouldn't say that. Smokey, you're not dumb. No, they're. And we're fine too. All right. Fortunately, I realized quickly what had happened and canceled my credit card before anything was charged. However, I'm worried about my personal info being out there. What other steps should I take to protect my privacy and financial well being? My adult children have already scolded me. What I need now is advice. We're not going to scold.

[Clark Howard]

Scold you. We're not going to scold you because this is such a common scam where people will get a text saying their Amazon package that was unable to be delivered or UPS or FedEx, whatever, trying to deliver. I got one just recently that Walmart was trying to deliver me a package.

[Krista]

Very possible.

[Clark Howard]

But it was phony.

[Krista]

Right? I know.

[Clark Howard]

And so any of these you get, do not respond to them. Do not respond. If there's actually a real package, one of the package delivery services is trying to get to you, then they'll leave a note or whatever. Don't believe the text. The only thing I would do in addition now Smokey, is if you don't have your credit frozen because the information the criminal has, they have a lot of what they need to be able to apply for credit as if they're. You freeze your credit files. It's free to do. Take you about, oh, 10, 10, 12 minutes to set up the three credit freezes, one each. Equifax, TransUnion, Experian. And if you don't know how to do that, go to clark.com credit freeze. When you get to Equifax, TransUnion or Experian, they will all try to con you into signing up for a vastly inferior thing called credit lock. Don't fall for it. Do credit. Freeze. It is completely free and easy to set up.

[Krista]

Okay, I've got a flight etiquette question for you, Clark. Oh, Tim in Arizona says, I recently flew nonstop from London Heathrow to Phoenix, Arizona. Our flight departed London at 11:15am London time. In the middle of the day. About an hour into the flight, about 1pm London time, the flight crew crew dimmed the lights and said that passengers should close the window blinds. Well, I'm a geography nerd. I had a window seat and had a bucket list. Item of mine was to see Greenland. Sure enough, we flew over Greenland. In sunny weather, I would very gently raise my window blind halfway up. I tried my best to block any glare with my shoulders. I also held up my backpack as a sort of makeshift blind. I I saw you are so considerate.

[Clark Howard]

That's really something.

[Krista]

I saw some amazing views. After a while, a fellow passenger about four seats over asked me very loudly to stop opening the blind. I thought about this later. I paid $27 extra for a window seat solely for the view. Is it right for the airline to tell us to close the blinds in the middle of the day if we paid extra for a window seat? Should I dispute the $27 window seat fee? And. And P.S. i wonder if the closed blinds request is a tactic to make passengers low maintenance during the flight.

[Clark Howard]

So I'll tell you, this is a big change in flying that I've noticed over the decades is that passengers used to want a window seat and they'd keep their eyes glued out the window because they were so excited by the experience of flight. The affordability of flights has made flying somewhat routine for very large swaths of population and so people no longer seem to care about the view out the window. And it has become common even on daytime flights that you see all the blinds down. And the request on a daytime flight to close the blinds, I've not had that before. I've just seen that passengers do close the blinds. It is your right on a daytime flight obviously to look out the window. You paid for that window to take in the scenes and the flight attendants requesting it to go down. Don't know what the motivation would have been for that, but you have the right to do what you did. I thought you were incredibly thoughtful and considerate trying to block the light with your shoulder but have your view using your backpack and don't feel guilty at all. And it was disrespectful, actually, in my opinion of the passenger four seats away saying, put that window down. Not their right.

[Krista]

Ron in Colorado says, my car is a 2001 Honda Civic. I bought it from a private party in 2005 and it had 45,000 miles on it. Of course, a buyer's inspection was done beforehand. It's been a great car.

[Clark Howard]

20 years later, we're still talking, man.

[Krista]

Honda Civics, man. It's been a great car. Reliable, easy to maintain and keeps on rolling. The mileage is now at 274,000. It's a manual transmission. And the local service shop, they work on only Hondas and Acuras and they've been in business since 1978, has recommended a new clutch, which would cost $3,000. The past few years, I've thought of getting a new vehicle such as a hybrid Camry. A newer car certainly has more conveniences and greater safety features. Cost is not an issue. I love taking road trips. Is it time to say goodbye to the Civic?

[Clark Howard]

I mean, this car is 25 model years old. It has provided fantastic service to you. The cost of the repair exceeds the value of the Civic at this point. Go get yourself your Camry hybrid. Go enjoy it. Because you're obviously someone who is so careful with money and what will shock you. I was talking with somebody else who had an ultra old vehicle that finally died on them and she for the first time ever, bought a new vehicle and she's overwhelmed by all the devices that are in vehicles now, having been driving one that was from 20 years ago. And so just know that there's going to be an initial adjustment to driving that Camry highway.

[Krista]

You'll feel like a spaceship.

[Clark Howard]

Yeah, but you've done it. You've gotten incredible value out of it. And to spend three grand on a repair on a vehicle that is worth maybe a thousand or so dollars, I would let it go. Just my opinion. Coming up ahead, we're going to talk about something with cars. It's very important. Cpo certified pre owned. Is it a scam? Is it a con? Or is it actually a good thing for you to look at a vehicle that the dealer and manufacturer say, trust us, we've certified this. Wait till you hear the answer.

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[Shingles Patient]

The pain from the shingles rash would affect simple everyday tasks like bathing, getting dressed or even walking around. I was wrong though. Not everyone at risk will develop it. 99% of people over the age of 50 already have the virus that causes shingles and it could reactivate at any time. I developed it and the blistering rash lasted for weeks. Don't learn the hard way like I did. Talk to your doctor or pharmacist today. Sponsored by GSK Certified Pre Owned.

[Clark Howard]

It's something that the automakers invest so much money in and started originally with luxury brands that very heavily when they would manufacture new vehicles got them in customer hands with three year leases instead of with purchases is what the luxury brands were trying to do was create a predictable cycle of new vehicle demand by doing these three year leases on the news and then to get the value to hold the value up higher on when the manufacturers would end up back with these three year old vehicles to stand behind them with a quality check, refurbishing and then a warranty available on the pre owned sale. So not call them used sales, call them pre owned stood behind by the manufacturer and so you could buy the item used with peace of mind creating two revenue streams from the same vehicle and keeping the new vehicle owners coming in over and over again every three years instead of A longer cycle. It's worked out beautifully for the manufacturers, but what started out as a clean kind of thing has really gotten messy. Now pretty much every brand, all price points offer certified pre owned programs. The problem is in the details. The vehicles are supposed to be fully refurbished. They're supposed to have not been in any serious accident. There's a long list of things that are supposed to be checked out and all that. But what keeps happening again and again. And if you follow the auto blog Motor1, they write about this, about people who buy CPOs and then it turns out they bought something that has not been properly checked out, not properly reconditioned. And then the manufacturer and the dealer like huh? Because see the manufacturers, these programs are so widespread now they just trust the dealers to do it and allow the dealers to sell it as certified selling it for a higher price because the buyer thinks they're buying something that's actually been checked out, is being stood behind by the manufacturer. And the problems again and again. This guy I just read about who bought a used Chevy truck, bought it under a CPO program, takes it on a road trip. The week after he buys it, it dies. Two hours down the road, it's still dead in a shop. And Chevrolet's like yeah, not our problem. The dealer's like huh, Who Us? This is the problem. I'm not picking on Chevrolet because this is an industry wide problem. I've been asked and questions people posted for me here. If I'm buying a certified pre owned, do I still need to have it checked out by a mechanic? Absolutely nothing changes. As we've had the question before from somebody who bought a cpo. Remember they're being sold supposedly not having been in a bad wreck and the vehicle had had serious frame damage, but was being sold as a cpo, which they didn't know till problems started appearing with the vehicle. This is something that could have been so good and was but now is corrupted. It is not working like it's supposed to. And you need to know that that dealer marketing something as a CPO certified pre owned and telling you it's worth more because we've done this 182 point check or 124 point check and we've got this warranty for you that comes with it and all that, you still have it checked out by a mechanic of your choosing. And if they're like hemming and hawing about you doing that, you, you don't want that vehicle, you cannot trust that purchase and this is stupid of the manufacturers and the dealers because they're degrading the perceived value of what this means, buying a certified pre owned when they don't stand behind it and they don't do what they say they're going to do. So do not trust it.

[Krista]

All right, we'll go to questions. Brad in Ohio sent this one in. I know you usually don't recommend extended warranties, but it would be great to hear your thoughts on Tesla's extended Service Agreement. My 2023 Model 3 is about to hit 50,000 miles and Tesla offered extended coverage for $50 per month until 100,000 miles or eight years with a $100 deductible per repair. I wasn't planning to take the offer, but one of my headlights just went out. Thankfully still covered under the original warranty. This the tech said it would have cost $1,100 without coverage and that most repairs are either inexpensive or very costly since they replace parts rather than repair them. I drive about 20,000 miles per year, so I'd likely hit 100,000 miles in two and a half years, about $1,500 total. If I keep the $50 per month plan that long, it's month to month transferable if I sell and cancelable anytime. So much more flexible than a typical extended warranty. Do you think this one is worth considering?

[Clark Howard]

Brad, this is a great question and it feeds right into what I've said about any kind of extension of a manufacturer's warranty on a vehicle. If you can buy one directly from the manufacturer and you can get that peace of mind, I'm neutral on it, but that's just fine to do. It is true with a Tesla that they are almost 100% proprietary. It's not like although in California, where there's so many Tesla registrations, there's independent shops that repair Teslas. That's rare around the United States. And so you're in a situation where the cost of repairs make you a captive of them and they can be very high. So you're going to keep this vehicle on the road for a substantial period of time. There's been a lot of depreciation on the 23 model threes, so you're going to get more value out of it by continuing to drive it. If the 50amonth gives you that peace of mind to keep it on the road, then I'd say in this case that would be worth doing. Again, it's from the manufacturer and that's when an extension of a warranty can be a good idea.

[Krista]

Robert in Oklahoma sent this in hi Clark, I really enjoy your daily emails, but I must take exception to your article why Car Wash Memberships Aren't Worth It. My membership allows me to have a sticker placed on my vehicle like a Pike Pass or toll tag, and I can go through the line without waiting behind someone who's fumbling around with their credit card or cash and trying to get the machine to take their input. I just zip through and I do this multiple times per month. My situation, it's totally worth it.

[Clark Howard]

So Robert, thank you for reading the car wash column that we had on.

[Krista]

Subscribing to the newsletter.

[Clark Howard]

Because this is something that you are the person who truly benefits from the car wash subscription and you're being subsidized by all the people that don't benefit from it. And all the car washes push the subscriptions because it's so profitable for them. Because people think oh I'll stop all the time and then they never do. And so that's free money for the car wash service. If you're someone who you know you're using it enough to make it work, which is generally you go past break even. The way the prices are set at most of these car wash subscriptions, at about two car washes a month, you're doing more than that. So for you this works. Just know you are the exception to.

[Krista]

The rule Okay, a different repair replace question from Rick in Oregon. Should I repair my vehicle? Is it worth it? I bought it from a lease return in 2020 pre Covid. My original intention was to drive it for three to five years and move on to the next fun car, a two seater Covid and new and used car prices interrupted this. I do really like this car, but I don't want to throw good money after bad bad depreciating asset. It's a 2017 Audi A630T Quattro with 78,000 miles on it. The Kelley Blue Book value is $18,000 and private sale of a similar cars is 20 to 25K. The repair cost would be $10,000 from an Audi dealership. A two year warranty included requires significant labor to repair and I explored the cost with replacing the engine instead as the labor is similar. My soft plan if I do repair it is to keep it for one to two years and move on to another used fun car.

[Clark Howard]

Okay, so great question. And this is when you get with a vehicle that's now nine model years old and it needs a substantial repair, if you don't repair it, it's going to hurt those values that you think you can earn. If I understood the scenario you were laying out, the value you're saying the Kelley Blue Book is, is based on it not needing a major repair. I'm assuming from the scenario you laid out. So you're in a bit of a bind because the cost of repair is roughly half the repair remaining value of the vehicle. So the smarter decision, if the scenario is as I understood, is to repair it, drive it for the next six months, year, whatever, and then you sell it and get into something else that you'd prefer to have. You know, the tipping point is generally when the cost of a repair exceeds the remaining value of the vehicle, you're not close to that down at like 50 cents on the dollar. But at the age your vehicle has, it could have other problems that would pop up. One thing I would suggest is go to your library. Maybe you can do it online and look at the repair record. If they have enough data on the Audi A6 going back as long as yours is to see if it tends to be more reliable as an older vehicle or less reliable. Consumer Reports does it with a simple scale you can see, and maybe that would help you make a decision. But based on the numbers you've given me, if I understand them right, I would do the repair, drive it for a while longer, then move on to something else. Just my opinion, and I hope that today something you heard was helpful to you, something was useful. I want to tell you something we do to empower you. In addition to the podcast, YouTube show, our websites, our social media, what I do, if you're in a TV market or radio market, you can see or hear me. Everything we do is about empowerment through knowledge. But let's say you've tried to fix a problem, you don't know what to do. We have free one on one advice for you. It's available every week from the Team Clark Consumer Action center. And you can see how to get that one on one [e-mail] cac all part of what we do to improve, empower you so you can save more, spend less, and never let anybody rip you off.