The Clark Howard Podcast
The Clark Howard Podcast

09.21.26 HELOCked Into A Debt Trap / New Vehicles Under $40,000

September 21, 2026

AI Summary

5 min read

The average new car now sells for close to $50,000, but a handful of brands still sell vehicles at an average price of $34,000 to $39,000. That is one of the two main threads in this episode of the Clark Howard Podcast, which also spends significant time warning listeners about a resurgence in home equity lending that Clark calls a "con" and a "curse." The throughline is about protecting the financial ground you have already gained—whether that is home equity or a paid-off car—from being eaten up by high-cost debt or unnecessary payments.

The HELOC Comeback: A Good Position Turned Into a Problem

Clark opens by describing a "plague" that has returned to American banking: the aggressive marketing of home equity lines of credit (HELOCs). He compares it directly to the period twenty years ago when banks pushed HELOCs everywhere—through TV ads, billboards, and mailers urging homeowners to "tap your home equity" for vacations, boats, cars, or credit card consolidation. The same thing is happening again now, online and everywhere else.

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What you'll learn

  • 1 (01:04) **Welcome & Mission** - Clark introduces the show’s mission and previews two topics: the danger of tapping home equity and the high cost of new cars.
  • 2 (01:47) **The HELOC Trap: Banks Pushing Floating-Rate Debt** - Clark explains why banks are aggressively marketing home equity lines of credit (HELOCs) and why they are dangerous for consumers.
  • 3 (05:21) **When to Tap Home Equity: The 36-Month Rule** - A caller asks about the least expensive way to access home equity, and Clark clarifies the rare instances where it makes sense.
  • 4 (08:28) **Paid-Off Mortgage Paperwork** - A caller asks how long to keep mortgage documents after the loan is paid off.
  • 5 (08:47) **Travel Tips: The 240-Hour China Visa** - A caller asks about a 10-day visa-free transit through China, and Clark confirms it works.
  • 6 (14:17) **The New Car Price Problem** - Clark explains why Ford, GM, and European brands have intentionally kept new car prices high by limiting supply.
  • 7 (15:07) **Affordable New Cars Under $40,000** - Clark lists the brands where the average transaction price is well below the industry norm.

+ Full timestamped outline available in the app

Show Notes

The banks are at it again, and Clark wants to make sure you don't fall into a dangerous debt trap. Home equity levels are at record highs as financial institutions aggressively push homeowners to tap equity with HELOCs and cash-out refinances to pay off credit cards or fund lifestyle expenses. Clark explains why turning your home's equity into high-interest debt is a massive financial risk, how it mimics the harmful bank tactics of 20 years ago, and why keeping your low fixed-rate mortgage intact is critical for long-term stability.

On the auto front, while major manufacturers continue prioritizing high-margin luxury vehicles over budget-friendly models, smart options still exist. Clark highlights nine major auto brands still averaging under $40,000 per sale, and reveals why the absolute best financial move you can make today is simply keeping your current vehicle on the road as long as possible.

Plus, Christa shares your #AskClark questions and Clark gives his take. All this and more on the September 21, 2026, episode of The Clark Howard Show.  Submit your questions: Ask Clark.

  • Home Equity Guidelines: Segment 1
  • Ask Clark: Segment 2
  • New Vehicles Under $40,000: Segment 3
  • Ask Clark: Segment 4

Mentioned on the show: