George Chamoun: Yes. I mean our main goal is to hit the objectives we’ve shown you all in ourselves that get up to about $500 and buy and sell these between now and ’26. The rate will always be determining how fast we do that. But our look at it as same goal we’ve been outlining $500 in ’26, again, will be lower than our typical traditional competitors are today. So there’s room here for us to increase fees incrementally, and we’ll decide when the right time is between now and then. But as Bill told you, this last one was about $25-ish box. We’ll just keep incrementally getting there until we have our pricing be competitive because today, it’s really a little bit lower than it should be.
Rajat Gupta: Got it. Thank you so much
George Chamoun: Yeah, certainly. Thank you.
Operator: Thank you. One moment for our next question. And our next question comes from Daniel Imbro of Stephens Incorporated.
Daniel Imbro: Hey, good evening, everybody. Thanks for taking our question.
George Chamoun: Certainly, Daniel.
Daniel Imbro: Maybe one on the volume backdrop haircut. I’m just curious with floor plan rates this high for your dealer customers, are you seeing dealers be more disciplined about moving aged inventory off the lot? And I think some of your peers maybe have tools to help with this, but do you have specific tools to maybe help dealers not only source cars, but determine, okay, like this is how long to hold this car for and this car should be wholesaled now. How is that adoption going just as floor plan rates are 7%, 8% now, not the 1% to 3% we saw a few years ago?
George Chamoun: Yes, Daniel, great question. Dealers are getting more and more disciplined. So we’re seeing it definitely with the larger groups, we’re seeing dealers — you’re all hearing that you’re seeing disciplined return in the ecosystem. The last couple of years, dealers really, in a way, paused all their aging policies. And for those of you that are new to this concept that Daniel is bringing up. Historically, if a car was on a dealer’s lot for over 90 days, the owners of the dealership or the operators would push the dealer to them, wholesale the vehicle, and they would deem it aged. That’s the category Daniel’s bringing up. So those policies are starting to come back in play. Some of them have been additive, likely said, hey, we’ll give you 120 for now, but we’re going to push to 90 by the end of this year.
And some dealer groups have gone right back at it and going right back to discipline. And your — second part of your question. Yes, we have tools. We have a product within our MAX Digital offering to help dealers both know their sweet spot and also help dealers manage what dealers they’re — what car is doing well, what cars they should really just be wholeselling right now. So that intelligence is currently in our MAX offering, and we’re always brainstorming how we can get some of this out to all of our dealers sort of iteratively. But yes, part of what you’re asking, we provide those services for somewhere around 1,000 rooftops out there today. So — but yes, I think both great questions. We are starting to see the discipline come up.
Daniel Imbro: Great. And then maybe just one follow-up on Rajat’s question on pricing. Curious how did your competitors respond? I think over the last 18 months, I think your large peers have raised fees, but you — each time fees have come up, how have you seen the market respond so far to your fee increases?
George Chamoun: Yes. As far as I can tell, we’ve been very fair to our end customers on our fee increases. I don’t know if we’re keeping up with everybody or not, honestly. If you went around and definitely looked at like the traditional physical auctions, these fees have gotten really high across the country. So we’ve been fair where — our buyers think we’re fair. We got really very little negative reaction and just as much positive reaction to the buy fee increase than we had negative. So our objective right now is not be a pig. Yes, our fees are low. We’re trying to increase these incrementally over a long period of time. And just do this well is fair to our buyers. I mean, these guys are all trying to — and gals are trying to build a business.
They’re all trying — they got their own struggles going on and yes, our fees are low. But we’re trying to do it incrementally to also be fair to our buyers. And so far, the team’s recommendation to me and others, the team’s recommendations have been thought on. The planning has been spot on. I’m just really, really proud of how we just keep doing the market intelligence, where are we compared to the market. And you just know when you do these things if you’re doing it well because your end customers even tell you, you’re really handling it as well. So I’m really proud of how the team has done this so far.
Daniel Imbro: Great. Appreciate all the color. Best of luck.
George Chamoun: Thank you.
William Zerella: Thanks.
Operator: Thank you. This concludes the question-and-answer session. I would now like to turn it back to Tim Fox for closing remarks.
Tim Fox: Thanks, TD. I’d like to thank everyone for joining us on the call today. Please note that we will be participating in several investor conferences in November here. You can find all the details on our IR website. We look forward to seeing you on the conference circuit, hopefully, this quarter. And again, thank you for your interest in ACV, and have a great evening.
Operator: This concludes today’s conference call. Thank you for participating and you may now disconnect.
