CarCast+Edmunds - Tesla sales pick up and negative equity on car loans continues to increase.
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negative equity on car loans
Negative equity means your car is worth less than what you still owe on the loan. If you try to sell or trade it in, you may have to pay extra out of pocket—or add that extra amount to a new loan.
leasing and buying
Leasing and buying are two different ways to finance a vehicle. Leasing typically means paying for the car’s depreciation over a set term with mileage/condition rules, while buying builds ownership equity and you keep the vehicle after the loan is paid off.
Tesla
Tesla is one of the biggest electric-vehicle companies. Here, they’re talking about Tesla saying sales improved and how the company’s reputation and stock price keep staying strong.
autonomy
Autonomy means the car can do more of the driving itself. Instead of you doing everything, the car handles steering, speed, and other driving tasks—at least more and more over time.
software updates
Software updates are like phone updates, but for your car. They can add new features or improve how the car drives without you buying a totally new vehicle.
trade it in and get a newer version with the latest hardware
This describes a common EV/tech-car strategy: autonomy and advanced features may depend on newer sensors, compute, and wiring—so older cars can become “outdated” even if they receive software updates. The implication is that owners may need to upgrade hardware to keep up with the newest autonomy capabilities.
Rivian
Rivian is an EV maker known for trucks and SUVs, and it’s mentioned here as another company taking a technology-first approach. The hosts compare Rivian’s autonomy focus to Tesla’s, contrasting both with “traditional manufacturers.”
robotaxi
A robotaxi is a car that drives itself and you summon it like an app-based ride. The company makes money by charging for rides, not by selling you the car.
aging vehicle fleet
An aging fleet means there are lots of older cars still being used. If those cars have older hardware, it can be harder for the company to deliver the newest self-driving features to everyone.
Tesla Model X
The Tesla Model X is Tesla’s electric SUV, positioned above the Model Y. The comment that “The S and the X are going” implies Tesla’s strategy or sales mix may be shifting away from these models.
Tesla Model S
The Tesla Model S is Tesla’s bigger, higher-end electric sedan. The hosts are implying Tesla is moving away from it and the Model X in favor of other models.
Tesla Cybertruck
The Tesla Cybertruck is Tesla’s electric pickup truck. The hosts are saying people aren’t as excited about it as they are about some of Tesla’s other cars.
Tesla Model Y
The Tesla Model Y is Tesla’s compact electric crossover/SUV. The segment groups it with the Model 3 as still strong sellers, but “older vehicles” whose appeal may be challenged by newer technology and competitors.
Tesla Model 3
The Tesla Model 3 is Tesla’s popular electric car. They’re saying it’s still selling well, but it’s getting older compared to newer options.
FSD take rates
“FSD take rate” means how many people buy or activate Tesla’s self-driving software. If the take rate is low, it suggests fewer owners are willing to pay for it.
FSD full-soft driving
“FSD” refers to Tesla’s Full Self-Driving software package, which aims to automate more driving tasks than basic driver assistance. The hosts mention it on a Model Y as a “test vehicle,” highlighting how software capability is being used to evaluate real-world usefulness.
commuting
The hosts are discussing commuting as the use case where driving-related technology can deliver the most value. They argue that if automation lets drivers spend less time actively driving (or less time focused on the road), the perceived benefit becomes much larger—especially in traffic-heavy cities like LA.
get the volume up, you can get the price down
The idea is that if a company sells and builds more cars, it usually costs less to make each one. That can make the cars cheaper for buyers.
license this technology
Licensing technology is when one company shares its tech with another company so they can use it in their own cars. It’s like a permission/contract to use someone else’s innovation.
Volkswagen
Volkswagen is a large car company. The hosts are talking about whether it could get access to EV or software technology through licensing deals.
market share
Market share is how much of all car sales a brand gets. If Tesla’s market share goes up, it means more people are buying Teslas compared with other options.
Wall Street
Wall Street is where investors and analysts look at companies and decide how they’re doing financially. The point here is that investors want Tesla to make money now from car sales, not just promise future tech.
Dodge Charger
The Dodge Charger is a performance-focused car with four doors. The podcast is specifically referring to the Charger EV, which is the electric version. It’s mentioned because its sales numbers were unexpectedly strong.
lease rates
Lease rates refer to the cost of financing a vehicle through a lease, typically expressed as the interest/“money factor” and reflected in the monthly payment. Very low lease rates can artificially boost demand because the monthly cost becomes easier to afford.
EV adoption split: affordable everyday EV vs statement EV
They’re describing two types of EV buyers. Some people want an EV that’s practical and affordable for everyday life, while others want a flashy, high-status EV.
bridging from hybrids to full EVs
This means some people start with a hybrid first, then later switch to a full electric car. The hybrid experience can make the full EV feel less intimidating.
EV sales
EV sales just means how many electric cars people are buying. If sales are “struggling,” it usually means not enough people are choosing EVs right now, often because of cost or how they compare to gas.
federal tax credit
The federal tax credit is a government incentive that can reduce the effective purchase price of qualifying vehicles, including certain EVs and plug-in hybrids. Incentives can temporarily boost demand, but sales may still depend on broader affordability factors like loan rates and fuel/energy costs.
gas price
Gas price affects whether people feel EVs are worth it. If gas gets expensive, driving a gas car costs more, so EVs can start to look like a better deal.
price threshold for buying an EV
The “price threshold” idea is that there’s a certain gas price where the savings from switching to an EV become compelling enough to influence buying decisions. Hosts are discussing how fuel costs can shift consumer behavior, even when EVs are often marketed for technology and driving experience.
powertrain
Powertrain is the “mechanical system” that makes the car move. In this context, they mean people are choosing EVs mainly because it’s electric, not necessarily because of the car’s other features.
fuel cost vs EV cost
They’re comparing the cost of driving with gas versus driving with electricity. If gas is much more expensive where you live, EVs can feel like a better deal.
saving $2 a gallon
They’re estimating how much money you save on fuel compared to a gas car. The argument is that the savings might be too small (or too slow) to justify the higher purchase price.
EV average price of $55,000
They’re using an average EV price to see if the cheaper “fuel” cost makes up for what you pay to buy the EV. If the car is expensive and the loan is costly, the savings may not be enough.
lease return
A lease return is when your lease ends and you give the car back. It can be easier to change cars at that point because you’re not starting from a brand-new loan.
In 2008
They’re pointing to 2008 as a time when car buying changed a lot. The idea is that when gas got expensive, people switched from big SUVs to smaller cars.
full-size SUVs being traded in for very small vehicles
When gas prices spike, people often trade big, thirsty SUVs for smaller, cheaper-to-run cars. The hosts are using this as a comparison point for today’s EV market.
EVs weren't around then
They’re saying EVs weren’t common in 2008, so people couldn’t have switched to EVs the way they might today. Back then, the shift was mostly to smaller gas cars.
bought over MSRP
MSRP is the sticker price the automaker suggests. “Over MSRP” means you paid more than that, often because the car was hard to get.
average interest rate is 7%
Interest rate is the “price” of borrowing money. If it’s higher—like 7%—you pay more each month for the same car.
monthly payments too high
Even if a car might make sense overall, if the monthly payment is too high, people can’t buy it. Higher prices and higher interest rates both push payments up.
sunk cost
Sunk cost means money you already spent and can’t change. The point is that a monthly payment can feel “already decided,” while buying gas feels like a fresh hit every time.
psychological impact
They’re describing how the way costs are presented and experienced changes consumer behavior. Fuel purchases happen repeatedly at the pump, so they can feel more immediate and “real” than a monthly payment, even if the math is similar.
affordability is such a challenge
In car shopping, “affordability” usually refers to whether monthly payments and operating costs fit comfortably in a household budget. When fuel or charging costs rise, they can quickly change the total cost of ownership and influence buying decisions.
average price of charging an EV
This is basically how much it costs, on average, to charge an electric car. Home charging is often cheaper, while public charging can cost more depending on the network and rates.
charging an EV either at home or on public networks
Charging an EV at home usually uses your regular electricity rate, while public chargers can have different pricing. To understand what you’ll actually pay, you need to look at both.
kilowatt
They’re quoting electricity cost using a unit called a kilowatt. In practice, it’s the price you pay based on how much energy you use to charge your car.
Edmunds fleet
They’re saying Edmunds tracks real-world driving and charging costs using a fleet of cars. That’s how they estimate what charging typically costs.
charge at home
They’re recommending you charge your EV at home because it’s typically cheaper and easier. Charging overnight can take advantage of lower electricity rates.
schedule charging
Scheduling charging means telling your car when to start charging. People do this so they can charge during cheaper electricity hours, like overnight.
peak time
Peak time is when lots of people are using electricity at the same time. Utilities usually charge more then, so charging your EV during peak hours costs more.
fast charger
A fast charger is a higher-power EV charging setup that can add significant energy in less time than standard home charging. Because it’s typically priced higher (and may use different rate structures), it often costs more per charging session or per kWh.
charging overnight at home
Charging overnight at home usually means you’re using cheaper electricity hours. If your utility has time-based pricing, charging later can cut your EV charging bill.
trade in
A trade-in is when you use your current car to help pay for the next one. If your car isn’t worth as much as your loan balance, that gap can carry over into the new deal.
CVs
“CVs” seems to mean smaller cars. The episode’s point is that when negative equity is added to the new loan, even smaller cars can end up costing a lot more than you’d expect.
rolling negative equity into a new loan
When you owe more than your trade-in is worth, that leftover amount can be added to the financing for the next car. That means your new loan starts out bigger than it should.
loan terms growing
Longer loan terms (more months) can reduce the monthly payment, but they also extend the time you’re paying interest. When negative-equity borrowers take longer terms, they may stay “underwater” longer and pay more overall.
72 months
72 months is six years of payments. It can make the payment smaller each month, but it usually means paying interest for longer.
rolled into this loan
When they “roll” negative equity into the new loan, they add the amount you still owe on your old car to the new car loan. So you end up financing more than just the new car. That usually makes the monthly payment and total cost higher.
84 months
An 84-month loan means you’re paying for about 7 years. It can make the monthly payment smaller, but you pay interest for longer. If you owe more than the car is worth, that problem can last a long time too.
bridge this $15,000
“Bridging” the $15,000 means you have to cover the gap between what you owe and what the new deal needs. If your trade-in doesn’t cover your old loan, you may need to pay extra cash or finance that gap too. Either way, it costs more to switch cars.
effective purchase price
The effective purchase price is what the car really costs you after you factor in your current loan. So even if the new car is $30,000, you might end up paying much more because of what you still owe on the old car.
loan terms to be so long
Longer auto loan terms (like 72 months) reduce the monthly payment by spreading it over more time. The tradeoff is you usually pay more total interest and you may stay “underwater” longer if the car’s value drops.
Volkswagen Tiguan
The Volkswagen Tiguan is a compact SUV. Here it’s brought up as an example of a gas car someone might consider when they’re trying to keep the monthly payment lower.
whole life cycle
“Whole life cycle” means thinking about the total cost over the entire time you own the car. Looking only at the monthly payment can miss bigger costs later, like depreciation and what you’ll owe if you sell early.
Ford F-150 Lightning
The Ford F-150 Lightning is an electric Ford truck. If you owe more than the truck is worth, that’s negative equity—especially if you want to sell or trade it.
CarMax
CarMax is a used-car company that gives you an offer for your vehicle. If your car is worth less than what you still owe, those offers can make negative equity feel very real.
buy and hold
“Buy and hold” means you keep the car you already have instead of trading it in right away. If your loan is underwater, waiting can help the situation improve as you make payments and the car’s value changes.
72 plus months
“72 plus months” refers to long loan terms (typically 6 years or more). Longer terms lower the monthly payment but increase total interest paid, and with negative equity they can keep you locked into a high-cost situation for a long time.
EV depreciation
EV depreciation means how fast an EV’s value drops over time. If it drops quickly, it can make it easier to end up owing more than the car is worth.
car manufacturer
The car manufacturer is the company that makes the vehicle. Sometimes they help set up lease deals or incentives, which can change who absorbs the financial risk when a car’s value drops.
residual value risk at lease-end
Leases assume the car will be worth a certain amount later. If the market value ends up lower than expected, you can owe more than the car is worth when the lease ends.
buyout rate
A buyout rate is the price you pay to buy the leased car when the lease ends. If that price is too high compared to what the car is worth today, it can erase the advantage of having positive equity.
lease deals
A lease deal is a special offer that lowers the monthly payment. It’s based on what the car is expected to be worth later, so the “best” choice depends on whether you’ll keep the car for a long time or not.
the economics
“The economics” here means the real total cost, not just the monthly payment. It includes things like interest, fees, and what the car will be worth later, which can be very different for EVs versus gas cars.
leasing becomes a more viable option
Leasing can make more sense if you think you’ll only keep the car for a short time. Instead of worrying about what the car will be worth later, you’re paying mainly for using it during the lease.
leasing for an EV
They’re saying EV leases can be a pretty good deal, even if buying a used EV might be even better. That’s because lease payments depend on what the car is expected to be worth later.
internal combustion engine vehicle
An “internal combustion engine” vehicle is basically a normal gas-powered car. They’re comparing how good the lease deals are for gas cars versus EVs, and saying the gas-car deals aren’t as strong.
own the car for only a few years
If you only plan to keep a car for a few years, you might not get the benefit of buying. The costs can be harder to “win” because the car could lose value before you’re ready to sell or trade.
buying or leasing used EV vehicles
Buying and leasing used EVs can be priced differently than new EVs. That’s because lenders and leasing companies look at how much the car will be worth later. If EV values are dropping fast, the deal terms can change.
residual value curve
Residual value is what the car is expected to be worth later. If EVs lose value faster than people expected, the “residual value curve” drops, and used EVs can look like a great deal. It also changes how leasing and financing deals are priced.
battery pack warranty (eight year warranty)
Many EVs include a long battery warranty, often measured in years and/or mileage. An “eight year warranty on their battery packs” can reduce the financial risk of buying used, because battery degradation or failure may be covered. However, coverage details (terms, mileage limits, and what counts as a failure) vary by brand and model.
Volkswagen Id
Volkswagen’s “ID” cars are their electric vehicles. The hosts are talking about how the battery warranty can shape what the car is worth later, especially when the warranty is getting close to ending.
battery warranty
EVs come with a warranty that covers the battery for a number of years. When that warranty is close to expiring, people may assume the battery could become expensive to fix, which can lower what the car is worth later.
EV resale value tied to warranty end
The hosts are saying that when an EV’s battery warranty is about to end, used-car buyers may pay less. It’s partly because people worry about what happens if the battery needs expensive work after the warranty.
EV battery pack failure leading to write-off
They’re talking about the worry that if an EV’s battery breaks, the car could be too expensive to repair. That fear can make people hesitant to buy older EVs, even if battery problems aren’t that common.
fear factor / unknown long-term EV data
They’re saying people are nervous because EVs are still new, so there isn’t as much long-term data as there is for older gas cars. That uncertainty can make buyers assume the worst, even if real-world results end up being better.
battery would fail at year eight
They’re talking about whether an EV battery might fail after several years. In real life, batteries usually last a long time, and there are often warranties that protect you if something goes wrong.
sticker price
Sticker price is basically the “new” price the car is advertised for. They’re saying you can often buy the same EV used for way less than that new price.
longer-term running costs
They mean the costs you’ll keep paying after you buy the car. Even if the price is a bargain, tires, insurance, and other expenses can make it less of a deal later.
EV
EV stands for electric vehicle. Instead of gas, it runs on electricity stored in a battery, so your costs can change from gas to charging.
certified pre-owned
A certified pre-owned car is a used car that a dealer checks and then “certifies” as being in good shape. It usually comes with extra warranty protection compared to a regular used car.
extended warranty
An extended warranty is extra protection that kicks in after the original warranty ends. Dealers may bundle it into the price so you’re paying for it as part of the deal.
engine oil changes
Oil changes are something gas cars need to keep the engine healthy. EVs don’t use engine oil the same way, so that particular maintenance concern is much smaller.
Mercedes
Mercedes is the car brand being used as an example in the conversation. The hosts are saying some Mercedes owners may run into issues like interior trim and suspension components.
headliner is going to probably fall off
The headliner is the material on the ceiling inside the car. If it starts falling off, it’s usually because the glue or clips that hold it in place have worn out.
air suspension
Air suspension is a suspension system that uses air bags to control how the car rides and how high it sits. Because it has extra parts like compressors and air lines, it can sometimes break and get expensive to fix.
Land Rover
Land Rover is another brand the hosts bring up as an example of vehicles that have had reliability problems over time. They’re using it to make a general point, not to review a specific car.
electrified vehicles come back off of lease
When leased cars are returned, they usually get sold as used cars. The hosts are saying more EVs will be coming back in 2026, which could change the used-car market and how people think about owning them.
Lexus Gx
The Lexus GX is a luxury SUV. In this discussion, it’s mainly there to show how a non-EV depreciated compared with an EV over the same timeframe.
depreciated $2,000 after 20,000 miles
Depreciation is how much the car loses value. They’re comparing value loss after about a year and 20,000 miles to see which vehicle is holding up better.
price differential
A price differential just means the difference in price. They’re saying two cars that cost the same at the start ended up very different in value later.
Honda
Honda is being mentioned as a brand whose cars tend to keep their value better. That can help if you want to trade in later.
Toyota
Toyota is mentioned as a brand whose cars usually hold their value well. That can make it less likely you’ll owe more than the car is worth later.
Toyota Tacoma
The Toyota Tacoma is used as an example of a model that tends to have strong resale value, putting owners in a better position financially. The host implies that Tacoma owners are less likely to end up underwater on their loan compared to vehicles with weaker depreciation.
vehicle choice
Vehicle choice matters because some cars hold their value better than others. If your car keeps its value, you’re less likely to owe more than it’s worth later.
incentives turn up
“Incentives turn up” means the manufacturer or dealer is offering more deals, like discounts or better financing. It can make buying easier, but it doesn’t necessarily change how much the car will be worth later.
slow Q1 in terms of sales
Q1 is the first three months of the year. Saying sales are “slow” in Q1 means fewer cars are being sold than expected, which often leads to more promotions.
spring and summer selling season
Dealers often sell more cars in spring and summer because more people are shopping around. If sales don’t pick up as expected, companies may offer bigger discounts to attract buyers.
interest rates
Interest rates are what lenders charge for borrowing. Higher rates usually mean higher monthly payments and more money paid overall.
total cost of ownership
Total cost of ownership means looking at what a car really costs you over time. It’s more than the monthly payment—it can include fuel, insurance, and other ongoing expenses.
positive equity
Positive equity means your car is worth more than what you still owe. So if you sell it, you can pay off the loan and keep the difference.
long-term test
Edmunds is describing how their vehicle evaluation is structured as a long-term test, even if it’s branded as a “one year test.” The idea is to capture real-world ownership effects—like wear and maintenance—over time rather than just short-term driving impressions.
one year test
A “one year test” is a testing format where a vehicle is kept for roughly a year so evaluators can measure durability, reliability, and costs that show up with time and mileage. It’s essentially a standardized ownership simulation rather than a quick drive.
Used EV reliability (real-world ownership vs. forums)
With used electric cars, it’s hard to know how reliable they’ll be just from ads. Real owners’ stories—like what they’ve had to fix after a few years—can be a better clue.
Facebook groups
Facebook groups are online communities where people talk about their cars. For used EVs, they can share what problems showed up over time and whether the car was worth the money.
Ford Lightning
The Ford Lightning is an electric pickup truck. In the used market, buyers look at things like battery condition and whether the truck has needed expensive repairs as miles add up.
warranty soon
If the warranty is about to end, you may have to pay for repairs yourself. That’s why buyers pay extra attention to what’s covered and what could cost money after the warranty expires.
cabin filter
A cabin filter is a small filter that cleans the air coming into the car. It’s usually a routine maintenance item, not a major repair.
Recurrent
Recurrent is a service that looks at EV battery information to estimate how batteries are aging over time. The hosts are saying they use that kind of data to talk about battery life.
battery life
Battery life is how long an EV battery can keep working well before it starts losing capacity. They’re saying EV batteries usually don’t degrade as fast as many people fear.
degradation more to do with time than mileage
EV battery degradation is often influenced by calendar aging (time) as much as by usage (miles). That means an older EV can be affected even if it hasn’t been driven much, changing how buyers should think about “wear” compared with internal combustion vehicles.
Nissan Leaf
They use the Nissan Leaf as an example to show that EV batteries can wear out from time, not just driving. So a newer Leaf might be a better buy even if it has more miles.
EV pages
They’re talking about a part of the website that focuses on electric cars. The point is that you should look at battery-related info when judging an EV, not only how many miles it has.
it's not like your phone
They’re saying EV batteries don’t usually get worse in the same sudden way phones can. Phone performance changes can feel abrupt, but EV batteries generally wear out slowly over time. So you shouldn’t assume an EV will suddenly “only go half as far” after a couple years.