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Episode #1324: Rising gas prices are pushing renters toward EVs, negative equity hits near-record highs, and JPMorgan’s AI tracking shows how fast workplace expectations are shifting.

Show Notes with links:

• Rising gas prices tied to Middle East conflict are nudging rental customers toward EVs, giving the segment a short-term demand boost—even as broader U.S. EV sales remain soft.
  • Hertz saw EV rental requests jump nearly 25% month-over-month, with strongest demand on the West Coast where gas prices hit hardest.
  • Turo reported an 11% booking increase in late March, with a 47% spike the day gas topped $4/gallon.
  • Fuel prices have surged over 30% since late February due to Strait of Hormuz disruptions impacting global oil flow.
  • While new EV sales are down 25% YoY, used EV prices and rental demand are climbing as consumers seek short-term savings.
  • John Coles of ACV Auctions said, “We have seen EVs get a second lease on life due to the sustained pressure at the pump.”

• Negative equity is making a serious comeback, with Edmunds reporting more car buyers rolling bigger chunks of debt into new loans—tightening affordability and reshaping the trade-in cycle across the industry.
  • Nearly 31% of trade-ins in Q1 2026 carried negative equity, approaching record highs as used vehicle values normalize.
  • The average amount owed hit $7,183—up 42% from five years ago—showing how much debt is being carried forward.
  • Longer loan terms are a key driver, with over 90% of these deals stretching to at least 72 months.
  • More buyers are deeply underwater, with 26% rolling over $10K+ into their next loan, pushing monthly payments to record levels.
  • Edmunds said, “Many consumers who rolled debt into their last purchase are now finding there is no easy exit.”

• JPMorgan is turning up the heat on AI adoption, tracking how often engineers use tools like Copilot and ranking them internally—raising concerns about performance pressure and workplace surveillance.
  • The bank is pushing its 65,000 tech employees to show “meaningful improvement” in code output using AI tools.
  • Internal dashboards rank engineers by AI usage, with categories like “non,” “light,” and “heavy” users visible across teams.
  • Some employees worry they’ll be labeled underperformers if their AI usage doesn’t increase, despite unclear metrics.
  • The tracking reflects a broader trend as companies try to prove ROI on massive AI investments.
  • One developer said, “I thought this AI tool was supposed to make our lives easier, but it really seems to have stepped up how much we're expected to do.”

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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