Doug Campbell : Yeah. I think Vickie touched on that in her remarks there about there being less predictability today. And I think that’s really driven by — partially by the rollout of the LOS. Our teams and our stores are learning how to use the system. It’s new. We haven’t changed it in over a decade. And so there’s a learning curve there, which does impact some productivity, right? We’re aware of that. The best thing we can do is continue to roll it out, roll it out quickly to support the stores as best as we can and then get that behind us. In addition to that, there was some softness in the environment. And what we’re trying to do is reconcile okay, we were up again in online credit apps, 19%. Our unique visitors to our website was also up 23%.
So like there’s no shortage of demand right? What we’re trying to do is balance the right customers in our portfolio and roll out this new system. There was a little bit of softness in showroom traffic. And so we’re trying to figure out, is that an us problem, right? Or is that driven by the environment. And it’s really, really early to tell. It was a sort of sharp drop off in October. And so it sort of remains to be seen. We’re trying to give ourselves some elasticity on the sales volume for the third quarter here because it’s important to us to get the right customers in our portfolio, and that’s the most thing — that’s the most important thing we’re really focused on.
Vickie Judy : Yeah. And there is still the affordability challenge. I think Cox has come out that there’s somewhere around 50% of the market that may be setting out due to affordability. So the improvements that we’re working on in terms of the vehicle should help with that also.
Doug Campbell : Yeah. I think that’s a great point, Vicki. The — I touched on that, the ability to sell more of our repossessions — when we do that, our early indicators and our pilot is, we can shave a couple of thousand dollars off the transaction price for our consumer that we can generate demand when we scale that. And so that’s why it’s so important, and we’re really focused on that. And that does roll out here in the third quarter. So I’m not really answering your question directly, but these are all the things that are sort of in play. We know we can drive some of that. We know the top side demand is really strong. And we know we’re also looking at underwriting restrictions and guidelines and trying to balance all of that with onboarding new stores. So I wish I could give you a more clear answer, but it’s not on the demand side.
Vincent Caintic : Okay. Understood and that’s very helpful. Thanks so much.
Doug Campbell : Thank you, Vincent.
Operator: Thank you. One moment please. Our next question comes from the line of Kyle Joseph of Jefferies. Your line is open.
Kyle Joseph : Hey, good morning. Thanks for taking my questions. Just a few more on credit, if you will. I think you referenced that kind of we’re back at kind of pre-pandemic average loss rates for the second quarter. But if we look back at kind of pre-pandemic reserve levels, I think they were more in the 24.5%, 25% range. Obviously, you’re above that now. Is that a function of the portfolio duration or just the uncertain outlook? And then kind of in addition to that, any specific macro changes that trigger the reserve? Or is it more just a function of performance in the enduring inflation.
Vickie Judy : Yeah. I would say that most of it is based on the performance the severity is a piece of that increased reserve as well. And then there are qualitative factors, such as the inflationary environment that also play into that. So it’s a combination of all of those things, Kyle that causes that reserve to need to be at a higher percentage.
Kyle Joseph : Got it. And then, yes, I think this was referenced earlier, but obviously, early-stage DQs [ph] continue to perform well. So is this the back book? And then is it just ongoing inflation that’s driving lot less curing back book?
Vickie Judy : Yeah. I think that’s a piece of it, just the consumer and the environment they’re in, but I think where we ended the quarter, especially, like I said, our closing on a Tuesday, which is typically our highest delinquency day of the week and then looking at both our 30-plus being lower as well as our less than 30-day delinquencies being lower was a really positive sign.
Kyle Joseph : Got it. Thanks very much for taking my questions.
Kyle Joseph : Thank you.
Operator: Thank you. I’m showing no further questions at this time. I will turn the call back over to Doug Campbell for any closing remarks.
Doug Campbell : Well, I’d like to thank everybody for joining the call. We have obviously a lot going on, a lot of positive things for our company. We’re really excited about our future and really focused on some of these high line items like our ERP and our LOS, which are tech investments that we’ve made over the last couple of years, all of which will help our customers be more successful. I think the affordability is a key part of this equation and knowing that we have a path to help engineer more affordable vehicles for our consumers and generate demand despite the external environment is also a big piece of that. And then lastly, we’re really excited about our acquisition posture. We were able to get one of these done. And when you can add stores that are on par with some of your larger stores in the country, how can you not be excited about that and the other ones that are in our pipeline, and some of them are two and three times the size of that.
So we couldn’t be more excited about our future. I appreciate everybody for joining the call, and thank you very much for your interest in America’s Car-Mart.
Operator: Thank you. Ladies and gentlemen, this does conclude today’s conference. Thank you all for participating. You may now disconnect. Have a great day.
