Answer is: The heat is unusable and lost to the surroundings.
Gasoline is a mixture of many different hydrocarbons: alkanes (paraffins), cycloalkanes and alkenes (olefins).
Balanced chemical reaction of gasoline combustion:
C₈H₁₈ + 25/2O₂ → 8CO₂ + 9H₂O + energy.
One part of energy produced in combustion of gasoline is used for car ungine (kinetic energy) and other part of that energy (in form of heat) is lost to the surronding and engine does not use it.