John Murphy: Good morning, guys. Just a couple of quick ones. David, first on Parts and Service, you indicated that integration stunted same-store sales a little bit. I’m just curious when you think that will resolve and how we should think about the opportunity in Parts and Service growth sort of mid and long term?
David Hult: Sure. I’ll do my best, John, and others can jump in here. There was a lot of accounting consolidation that took place. And when that takes place, it’s never convenient, it’s never easy, and there’s unfortunately hiccups with software integration, which makes it difficult for the results. At the same time, we’re integrating some of our service software to make our stores a little bit more efficient in how they operate and sell their product. As I said last quarter, I thought it would be a quarter or two. We’re hoping by the end of the fourth quarter, we should have normalized and had everything integrated and start off fresh in Q1 of next year.
John Murphy: Okay. That’s super helpful. On the used sourcing side, is this really just a function of a dearth of late model vehicles? And is there maybe a need to go older in the age spectrum until we regrow that population of units? Or do you think there’s something sort of more structurally going on and the dynamics of who was getting vehicles in the competitive set in the used vehicle market?
Daniel Clara: John, this is Dan. As you can see, our cost of sale dropped $900 a car or around there, and so we’re definitely bringing that cost of sale down with trying to really keep the older call for lack of a better term. We are — those cars are harder to get. When we get them, we do everything within our power to put a safe, reliable car in the front line that we can sell to one of our guests. But we still — even at that point, you’re looking — you’re talking about $31,000 in our cost of sales for a new car that is pretty high, and that has just been a product of what we’ve seen in the last few years where the acquisition cost of new cars has continued to grow.
John Murphy: Okay. And then just lastly, obviously, you’re making big acquisitions, and that seems like it makes sense. You’ve got the cash flow balance sheet to do it. But at some point, David, that story will run out maybe to some degree. It might be many, many years. So I’m not saying it’s happening anytime soon. But as you build out the network even further and go wider, ultimately, what kind of opportunity is there to go deeper in each market, whether it be sort of what we’re just talking about sort of age of vehicle, on the sort of the turn or the second, third, fourth turn of the vehicle or the service work that might go in sort of five years, 10, 15 years? How do you think about that in eventuality of needing to and wanting to go after that?
David Hult: It’s a great question, John. We — a few years ago, we were the smallest by part of the public, and we’ve been trying to grow in markets where we think it will stabilize and strengthen our company, and we think we’ve effectively done that. And even though we’ve had a lot of acquisitions, I’ll just remind everyone, when we close on the pending deal, it will be almost two years since we’ve acquired something. And in 2022, we divested of 16 stores. So there’s a lot of activity going on there. We’ve been building for the last few years to be an efficient organization, to be ready to scale, to be ready to support the OEMs and any consolidation that might take place over time. As you know, leasing has disappeared from the marketplace for the last few years for obvious reasons.
