Clark Howard Warned GM Would Rather Sell Fewer Cars for More Money, and Then GM Reported Its Quarter
Consumer advocate Clark Howard called out Ford and GM for choosing profit over sales volume, and then GM released numbers that seemed to prove his point. Here is what that strategy costs a buyer who walks into a showroom without…
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On his September 21 podcast, consumer advocate Clark Howard accused Ford (NYSE:F | F Price Prediction) and General Motors (NYSE:GM) of shrinking supply on purpose: “Ford and GM had both made a decision along with some of the European brands, that they would rather sell a lot less metal. They call it metal. A lot fewer cars for a lot more money than get market share.”
GM reported its sales ten days later. According to CNBC’s coverage of GM’s third-quarter sales, unit sales fell 6% from a year earlier and are down 6% year to date. In the same report, GM said the industry sales rate stayed strong in the upper 16 million range. So GM is selling fewer vehicles in a healthy market.
This matters to anyone walking into a showroom. Howard said the average American-brand vehicle now sells for 50 plus thousand, while Subaru and Honda (NYSE:HMC) average 37 grand. If you expect the market to hand you a discount, you will overpay.
GM’s Own Earnings Back Up Howard’s Charge
Howard is right, and GM’s quarterly results show it. In the first quarter of 2026, North American wholesale volume fell to 793,000 units from 827,000. Even so, adjusted EBIT rose 22% to $4.3 billion. Fewer trucks left the factory, and GM made more money on each one.
Management described the strategy itself on its July call. GM said its incentives run one and a half to two points below the industry average. It also said per-unit profit on full-size pickups is up over 25% since 2020.
To be fair, part of the third-quarter fall has another explanation. EV sales dropped more than 50%. GM blames the EV tax credit that expired in September 2025, which pulled demand forward, plus discontinued models like the Chevrolet Malibu. Gas-powered sales were up fractionally. Pricing discipline is still stated policy, though. It added 600 million in first-half profit.
Shareholders got the “more money” half of the deal. GM’s quarterly dividend went from $0.12 to $0.15, then to $0.18. That’s a 50% increase.
Even so, shares sit near $79, down about 8% over the past month.
How a $13,000 Sticker Gap Turns Into $15,000
Here’s an example. Say you compare a $50,000 domestic SUV with a $37,000 rival. The sticker gap is $13,000.
Assume both are financed over 60 months at an sample 7% APR.
The pricier vehicle costs about $990 a month, compared with about $733. That’s an extra $257 every month.
You’d pay roughly $9,404 in interest on the first loan and $6,959 on the second.
Over the full loan, the real gap is about $15,445, and interest grows it every month. Small incentives add to the gap. Two points of MSRP on a $50,000 vehicle is $1,000 in discounts you’d likely see at a brand that discounts like the rest of the industry.
Your Loan Rate Decides How Much the Premium Hurts
The variable that matters most is your interest rate. On that same $13,000 premium, a 1.9% loan makes the total gap about $13,638. A 10% loan drives it to about $16,573.
Borrowers with excellent credit pay roughly the sticker difference. Borrowers with weaker credit pay the premium plus thousands more in interest. If your rate is high, buying from an automaker that limits supply costs you the most.
How to Shop When Automakers Limit Supply
- Compare across brands in the same category. Howard’s list includes Buick at 36 grand and Kia at 38. Price at least two of them against any vehicle you’re considering, and compare total loan cost instead of the monthly payment.
- Get a preapproved rate before you visit a dealer. Enter that rate into a loan calculator for each vehicle. Seeing the total cost over five years makes the true price gap clear.
- Skip the end-of-model clearance plan for trucks. New Silverado and Sierra pickups arrive in December, but GM says it hasn’t seen the “typical heavy discounting at the end of the cycle.” Don’t build your budget around a markdown that may never come.
- Negotiate the out-the-door price by email. Ask several dealers for a written total that includes fees. This avoids the showroom pressure tactics Howard has criticized for years, and it makes dealers compete on the one number that matters.
GM decided to sell fewer vehicles at higher prices, so the savings come from comparing total costs before you sign.
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Jake has been been working in financial media for almost 15 years. He focuses on all things personal finance for 24/7 Wall St. with high hopes to educate and entertain. Most recently, Jake spent 12 years working various roles at The Motley Fool. He started copy editing fool.com content, worked on premium and marketing campaigns, and helped launch The Ascent, a personal finance brand.
His work has been featured on platforms like MSN, Yahoo Finance, USA Today, and more. He's written about credit cards, social security, ETFs, savings accounts, and just about anything else you can imagine when thinking about money. Jake love to cook, play golf, and tell people he's never had a cavity. (It's true!)
