George Chamoun: Hey, John, it’s George. I’ll go with your second question first, and Bill can go to your first question. So we’ve been — if you look at our last six quarters, we’ve been between 16% and 17% average. So 15% is pretty consistent with that range. And keep in mind how you even do this math is — math, where it’s not perfect, right? Talk about this. So number two, if you do a little homework on the competitive environment, I think you’re going to see that 15% was really good. So one, I think, compared to our competitors, we really did a great job. And two, I would say — I would call that rather consistent with the 16% to 17% for the last 16 — or last six quarters. I’d go to — so I feel great on the fact that when you look at what we’ve been putting up there in any given quarter, let’s is generally say between 15% and 17%, I feel really good about that. So no change. Bill, do you want to go to the first question?
William Zerella: Yes. So John, in terms of Q3 and the price increase, it was roughly about $25 in terms of sizing. So also relatively small, similar to the price adjustments we passed through last year. And that was only for one month in the quarter. So roughly 1/3, about $8 worth of impact on our auction ARPU. And then obviously, we will get the full quarter benefit of that in Q4. That’s all other things being equal. Obviously, what ultimately impacts ARPU are other factors, including average car prices, right? So that’s the biggest variable. But if you just want to isolate the price increase by itself, those would be the numbers, that would be the math.
John Colantuoni: Very helpful. Thanks so much.
William Zerella: Yeah. Thank you.
Operator: Thank you. One most four our next question. And our next question comes from Bob Labick of CJS Securities.
Bob Labick: I wanted to start with the exciting discussion earlier on ClearCar and self-inspection and maybe tell us — expand a little bit on the uses. Is it right now just for dealers — for consumer sourcing? Or is there an opportunity to use this self-inspection for perhaps some more remote dealerships that a VCI can’t get out to efficiently and therefore, just have a dealer inspecting their own cars and loading them on the network as well? Or how is it being used now? And what are the opportunities for this self-inspection that you’re pioneering?
George Chamoun: Yes, certainly, Bob. We — I would say so far, what you heard us talking about is the first category you open up, which is dealer sourcing more consumer cars. We’ve been pressing that as a problem we want to solve, number one, because it’s the biggest complaint we hear from dealers is they need more inventory, especially late model inventory, the cars that they would normally keep. And they need help, right? So they’re keeping cars that they typically would wholesale primarily because they still need the right inventory. So we think by them sourcing more consumer cars, we’ll actually wholesale more, right? So you’re seeing us focus there. And the second part of your question. Even today, dealers do self-inspect some cars.
It’s low today, low single-digit percentage of our cars today. Dealers are inspecting and selling, first, ACV is inspecting. These new tools we’re doing will make it easier. Probably not ready to talk about that until somewhere around Q2 or Q3 of next year. Somewhere in that timing, we’ll probably sort of talk about that a little bit more. But already something we support. So if a dealer does want to inspect a car, launch it, that’s already something that we support. But the category would be dealers asking if we could make that a little bit more efficient and easier for them to do. So that would be the category that you’re — you got here for the call, which is a good one but something we would be probably — I would be more comfortable to talk about sometime in maybe the first half of next year.
Bob Labick: Okay. Very fair. Please remind me to ask you how much that will increase your TAM at some point in the first half of next year. And so just for my other question then. If you could give us an update on your penetration into the large dealer groups. Obviously, that’s another driver of your units and your opportunity and your growth. And just kind of where you stand now and where you want to be.
George Chamoun: Yes. No, it’s a great question. I don’t think we’ve been giving any data about our growth rate there. But what I will say this is our growth rate with the major dealer groups has been materially higher when you compare that compared to the growth rate we share with you all. The growth rate with the major groups is a higher percentage. So it’s going well. We continue to focus on adding more value, whether it be ACV private marketplace, whether it be products like ClearCar. One of the large dealer groups out there want to top three or four, I would say, at least the only top five is using us. Private marketplace. They’re using us for MAX Digital. Now they’re using us or ClearCar. So this is a top five dealer group using us literally all of our value-added services, and we’re starting to have a material piece of their overall wholesale share.
So feeling really good. The strategy we’re doing is working, where our value-added service strategy is working and we’re able to build a relationship with several of these dealer groups.
Bob Labick: Super. Thanks so much.
George Chamoun: Thank you, Bob.
Operator: Thank you. Once moment for our next question. And our next question comes from Michael Graham of Canaccord.
Michael Graham: Hey, thank you. I just wanted to ask two. The first one was on the transport attach rate in margin, which is going great. Do you have any updated thoughts on like terminally where that transport margin can get to? And I just wanted to ask, as we inch a little closer to the new year here, when you think about achieving your 2026 targets, any updated thoughts on whether over the course of like 2024, 2025 and 2026, any updated thoughts on whether you think that expansion on the margin side is expected to be linear or back-end loaded? Or just any high-level thoughts you could share would be great.
George Chamoun: Yes, certainly, Michael. We — obviously, we’re ecstatic about how well ACV Transport has been going, both from take rate and margin. It’s going really, really well. We’d really rather keep everyone’s expectations about what we’ve been doing for a couple of reasons. One is look at the addressable market as 70%, right? So when you look at the addressable market at 70%, hitting the take rates we’ve been hitting is really incredible, right? Because there’s always going to be a portion of your dealers who are local and who can just go and pick up the car. So one is when I look at the overall take rate for transport, we’d rather not create higher expectations we’ve created. And even if we do, in any one quarter be a little higher than that, I’d rather you all keep the expectations where we’ve had it, okay?
