So that’s one is I think it’s good to keep our expectations reasonable there. On margin. Again, we’re doing a really great job. I’d rather — until we’re significantly higher end units. We still, at the end of the day, we still deliver a margin profile and transport that’s blended with both mature markets and less mature. So instead of getting into a tangent here, I’d rather just say that for at least the next few years, I’d like to keep our expectations where they are. And I think that gives us the opportunity to invest in the lanes that we want to invest in and still take the revenue and margin we want in another lane. So that’s giving you a little bit behind the scenes of why. I didn’t think that post 2026 in that dialogue, at least from now to 2026, I’d rather keep the expectations where they are and then kind of go from there.
William Zerella: Yes, I think I would add just one of your questions was, will the growth in EBITDA margins to be linear. The answer to that question is no, I would not expect them to be linear. Obviously, we haven’t provided 2024 guidance yet. We’ll do that on our next call. But I think in terms of the leverage of our model, which is very significant. And as we start to accelerate our growth due to continued share gains, market recovery over time over the next several years, penetrating commercial, continuing to expand our ARPU, there will be a lot of leverage that will flow through to the bottom line in the out years, right? So I think kind of acceleration through ’25 and potentially significant acceleration through ’26 as we get the benefit of that leverage.
So again, we didn’t, at our Analyst Day, break down what it would look like each year, obviously. But that’s the overall concept and the reason why we’re confident that we can execute on that path assuming we can drive the top line revenue growth that we articulated a few months ago at the Analyst Day.
Michael Graham: Okay, thanks. Those are helpful answers. Thank you both.
Operator: Thank you. One moment for our next question. And our next question comes from Rajat Gupta of JPMorgan Chase.
Rajat Gupta: Great. Thanks for taking the question and congrats on the execution in the quarter. I just had one on — just first one on you talked about the supply challenges getting a little better. You talked about dealers moving, reducing more trades than what they’re doing right now into next year. I mean, we’re going to see some challenges like from the off-lease supply challenges hitting starting middle of next year from the low penetration in ’21 and then after that? How do you overcome that in context of your market expectations? Or maybe another way to ask is, what is your expectation of just used car retail industry volumes improving next year that gives you comfort around the recovery in your market next year? And I have a follow-up. Thanks.
George Chamoun: Yes. Certainly, Rajat. I mentioned some of this earlier, and not be repetitive too much. But when you think about our primary supply today coming from franchise dealers. Granted, we have new channels that we’re also building that we talked about at Investor Day. But just to focus first your first question on our primary channel. I would at least today out predict new car sales should at least marginally improve, if not improve better than marginally year-over-year. That would be like sitting here predicting next year, right? Just like the rest of us trying to predict all these macro things going on. We’ve got better — the actual OEMs aren’t having the challenges building vehicles. So most of that is behind us.
We have incentives starting to come out. I would say better expectations from OEMs. I mean, we’re not hearing you all ask questions like maybe OEMs will never do incentives again. I mean, all those questions are all gone, right? We all know we’re going to go back to incentives. So you kind of go into next year, say, okay, consumers are going to be incented to buy a new car. Meanwhile, cars are aging. We have cars. Consumers are driving, at least from an age perspective, the oldest cars we’ve seen on record, and it’s getting worse. And for the everyday consumer out there, that’s not a good thing. It’s getting more and more expensive to fix these cars. If any of you have friends or family have gone through this, you’re probably all hearing the stories every day right now.
It’s challenging. When you go in there and you’re getting a repair that’s $1,500, $2,500 for repair. It’s tough. I’d much rather get in there, do a $400 or $500 payment or a lease or something like that. You’ve seen most recently in the TV commercials. I noticed even yesterday, watching television, Chevy was promoting their cars that are brand-new vehicles between $25,000 and $30,000. There was a reason why they were showcasing, right, that specific commercial right now. They’re trying to tell consumers. There are cars. There are new cars they can buy. It might not be the one they wanted, but there are cars. So when I think about next year, I think we’ll see new cars come back in favor. I think we’re going to have consumers that can afford and have the credit and means to buy those new cars.
And I think what that’s going to mean for the used cars that are being traded in, dealers are only going to keep the ones they know they’re going to make money on. I think it’s going to — dealers are going to go into the year, not saying we need to keep everything like they have been in the last couple of years because they know interest rates might stay high. They’re not going to think they could — not every single one of these used cars is going to be the champion they bought the last couple of years. It’s going to be a much more realistic mindset, which I think will press these trades to end up at a dealer, an independent dealer or someone else who’s got a much lower cost of labor, they can fix these things cheaper than some of the franchise dealers.
And I think some of the old trends will come back again. So again, long-winded answer. I think, important question. But I feel good that at least sitting here right now, now how much — whether or not next year is just marginally better than this year or materially better, I’m not ready to say. But it feels like we should at least improve year-over-year. That’s at least my current professional guess.
Rajat Gupta: Got it. That’s helpful. And then maybe just a quick one on the price increases. The September price increase a little faster than we had expected. Last year it was December. Should we expect you to continue to do this at a higher frequency or was it just more of a timing shift this year and we need go back to like once a year next year? Just maybe any thoughts on that would be helpful. And that’s all I had. Thanks.
