Episode #1351: Today we talk about the growing affordability squeeze facing car buyers, why dealerships are now negotiating with customers and ChatGPT at the same time, and the Kansas Ford dealer whose sold F-250 is temporarily protected by federal bird law

Show Notes with links:

New-vehicle demand is holding strong, but affordability is still doing consumers no favors. Higher prices, rising monthly payments, and stretched loan terms continue shaping how buyers shop and finance in 2026.
- Cox Automotive says the average new-vehicle monthly payment climbed to $757 in April, while the average new-vehicle loan rate increased to 9.45%. Buyers now need 35.2 weeks of median income to afford the average new vehicle.
- JD Power projects May average monthly payments will trend even higher toward $810 as consumers continue battling affordability pressure.
- Buyers are leaning harder on longer loan terms, with 13.4% of loans now stretching to 84 months or longer.
- Negative equity is becoming a bigger issue too, with more than 30% of trade-ins carrying negative equity year over year.
- Despite all of that, demand remains strong. JD Power forecasts May retail sales will rise 6% year over year as incentives increase and interest rates slowly improve.

AI is officially part of the showroom process. More shoppers are showing up armed with pricing advice from ChatGPT and Claude, pushing dealers to sharpen how they explain value beyond the numbers.
- A customer at Beaver Toyota of Cumming tried to renegotiate a Grand Highlander deal after consulting ChatGPT and Claude overnight.
- The dealership kept the deal alive by focusing on added value including a lifetime powertrain warranty, oil changes, and roadside assistance.
- Cox Automotive says 17% of new-car shoppers and 11% of used-car shoppers are already using AI tools during the buying process.
- Vincue executive Daniel Govaer is developing a white paper to help dealerships respond to AI-driven objections and pricing conversations.
- “I’m trying to get the word out that there is life in negotiating with AI. This is just another opportunity for us to adapt.” — Daniel Govaer

One Kansas Ford dealer sold an F-250 that can’t be delivered yet because a robin built a nest on the truck, laid eggs, and now the whole thing is federally protected. Somewhere, a customer is financing both a pickup and a tiny wildlife preserve.
- Employees at Olathe Ford Lincoln discovered a robin’s nest on the front passenger-side tire of a black F-250 back in early May.
- The eggs hatched on May 14, and under the Migratory Bird Treaty Act, the dealership legally cannot move the truck until the birds leave the nest.
- The dealership thanked the customer for being patient while the baby robins grow up and move out.
- Staff say they’ve become emotionally invested in the birds, joking that the dealership is slowly turning into an animal rescue.
- One employee told local news: “We found some cats in the cars before… and just today, someone came in to get their oil changed, and we lifted up the hood, and there was a mama possum with about seven baby possums.”

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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