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Episode #1320: Today we unpack how CarMax is leaning into older inventory, Rivian is powering plants with old batteries, and resale is becoming the new customer acquisition engine for brands.

Show Notes with links:

• CarMax is leaning into lower-priced, higher-mileage inventory and looser credit to tackle affordability—but Wall Street isn’t buying it yet. Despite solid earnings, shares slid as investors question the cost and timeline of the turnaround.
  • CarMax stock dropped 14% after earnings, even with results meeting expectations.
  • The company is pausing share buybacks to preserve cash for a turnaround strategy.
  • CarMax is increasing its mix of older, higher-mileage “value” vehicles to meet affordability demand, now ~35% of inventory.
  • Its finance arm is working with stretched buyers, noting most customers outside top-tier credit are struggling with payments.
  • “This year we have absolutely increased our sales of older cars to meet the customer where they want to be met on affordability,” said CFO Enrique Mayor-Mora.

• Rivian is tapping into its own retired EV batteries to power its Illinois plant, partnering with Redwood Materials in a move that cuts energy costs and grid reliance—while hinting at a bigger long-term infrastructure play.
  • Once completed, the factory will draw power from 100+ reused EV batteries in a footprint the size of a small parking lot.
  • The setup will reduce reliance on the power grid, especially during peak demand hours.
  • The system is expected to deliver 10 MWh of energy, roughly equal to 1,000 home battery units.
  • Rivian sees potential to expand battery reuse across facilities, with more projects likely as it scales production.
  • “There’s hopefully a lot more… and there’s going to be a lot of batteries we’ll have access to,” said CEO RJ Scaringe.

• The global resale market is surging as affordability pressures push consumers toward secondhand goods—creating a powerful new customer acquisition channel for brands.
  • The global resale market is projected to hit $317B by 2027, up from $256B in 2025.
  • 84% of resale shoppers use secondhand platforms to discover new brands.
  • 58% of shoppers who first buy a brand secondhand go on to purchase new items from that brand.
  • “This is an interesting way for higher-price-point brands to acquire new customers,” said McKinsey’s Colleen Baum.

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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