So you will never get 100%. It’s not just us at 40% to 50%. My guess is that that’s a typical kind of number that you would hear. I think there is opportunity for us to grow that number but deploying not just improvements in availability, our dealerships, but other initiatives to help provide convenient service at the right cost equation for customers.John Murphy But it’s safe to say there is a huge structural opportunity. We’re not looking at something that’s cyclical here. It’s a matter of getting the capacity in the human capital to address this that should drive same-store sale comps going forward, whether it be RepairSmith or some other actual tech. Is that a fair statement?Mike Manley Yes.John Murphy Great. Thank you. That’s fantastic.
Thank you very much.Mike Manley You are welcome. Thanks.Operator Thank you. We now have Daniel Imbro of Stephens Inc. Your may proceed with your question. Joe Enderlin Hey, guys. This is Joe Enderlin on for Daniel. Thanks for taking our question. Looking at used that came in ahead of our expectation, how would you attribute the sequential gain there to the increase in wholesale pricing during the quarter? And then as you look forward, what would be your expectation for trajectory there? Is that something that would allow you to hold on to GPU more than you initially thought?Joe Lower Yes. Thanks, Joe. I think as always, the result a lot of combination of things that contribute to it. I think for us, one of the things is that you never have got the supply and demand dynamics on used that you have with new, as you know, for very obvious reasons.
But when – as we thought about our used vehicle inventory and our approach, what we really wanted to do is make sure that we maximize the inventory that we had. And with that, it means that we were even more diligent, I think, in terms of pricing. The other thing was for us to try and continue to improve our days to supply and our turn rates, and we were able to improve that through the quarter, and all of these things become – all of these things become additive. And as Joe mentioned, in a year-over-year comp on this one, it was always going to be a good guide because of the work we did last year. How much of it is structural in this market. I think that, as I said, in the area of vehicles that for AutoNation is the sweet spot, there will be continued constraint.
We have, as you can imagine, not just accepted that, but put in place some actions and some processes to mitigate that where possible and in some areas, learned from others that have done a good job over the years as well. But add that to the discipline in terms of getting these leases to the front pricing, thinking about where the vehicle should be sold from, I think, helped and contributed to all of it, how much sticks is a great question. I anticipate some of it will stick, not all of it for sure because it’s a very dynamic market at the moment.Joe Enderlin Thank you. That’s super helpful. As a follow-up, you had a peer suggest there is a disproportionate number of fleet vehicles being transacted right now as opposed to retail. And as a result, customer incentives remain constrained.
Could you provide some thoughts on this? And then in particular, how do you expect the cadence of customer incentives to trend this year? Thank you.Mike Manley Yes. I mean unlike the previous recessions where all markets were being served with plenty of supply, and it was pure demand. The fleet market obviously has been starved of supply during this period as the OEMs have prioritized their retail channels. So I think as OEMs are beginning to return, they are obviously looking at their margin and they have made the decision. I think to do two things. One is to give their fleet customers, which are very important to OEMs, the vehicles that they have been asking for, for some time, so you naturally see a spike. And then second, we look at their performance in the broader marketplace.
I don’t think it’s an unusual phenomenon. So from an incentive point of view, we all know incentives are still significantly lower. I think there are some brands that will have to progressively increase their incentives to drive net price position down in the marketplace if they are going to maintain or even slightly grow market share. And one of the things that I think aggressively will happen is leasing business will begin to return. I think it’s around 15% or 16% at the moment. It’s about 30%, 32%, 33%, something like that in normal times. So as we go through the year, I think if the residual demand out there remains where it is, you’re going to see OEMs progressively, I think, adjust their net price position so that they can balance that production, the fleet demand and their need to maintain retail market share.Joe Enderlin That’s helpful.
Great. Thank you. That’s all for us.Operator We now have Bret Jordan of Jefferies. Please go ahead when you are ready.Bret Jordan Hey, good morning, guys. A couple of questions on the new business initiatives. RepairSmith, I guess, was it incremental to the parts and service business? And then I guess within parts and service, if you could break out what was ticket versus traffic.Mike Manley Yes. I mean, as we’ve said, RepairSmith is not substitutional for our businesses. It’s very much additive. The other thing that, for us, we recognize with our AN USA expansion is we also wanted to provide our AutoNation USA customers with a very tailored, specific convenient After-Sales service provision, which none of the stand-alone used car businesses really have been able to do.
And therefore, RepairSmith effectively becomes AN USA’s After-Sales division, giving Dave and the team, what I think could be a fairly significant USP in the marketplace. So I’m pleased about that. And the good news is, as we’ve said, both with AutoNation Finance and with RepairSmith, our approach is to deliberately grow these businesses in the same way that we are growing deliberately AutoNation USA, so very much additive. I think it’s very much now a USP for AutoNation USA and expecting the team to be able to use that effectively in the marketplace. In terms of – go ahead.Bret Jordan No, I was going to say is RepairSmith geographically restricted in the sense that it’s an outdoor work or remote work? Are you stuck – are you mostly Southern markets, or is it harder to staff for that model because technicians prefer to work indoors, or how does that work – what’s the potential rollout for it?Mike Manley It’s interesting because as we started to look at this more and more, I think my going-in assumption is exactly that, which for us, if you think about our footprint, not really a huge issue.
But the reality is, as our and the business more during the diligence phase and actually understood the way that they work, there are so many different ways that they address the extreme cold climates. And their rollout plan really was not necessarily driven by does it snow a lot or is the temperature dropped dramatically in these areas because as they have been able to prove many of the things that they do can be done in multistory car parks, for example, within garages, at different places as well. So, I would think it would be completely unfair for me to say there isn’t an impact and you are completely right. Technicians prefer to work indoors particularly during the extreme cold and heat. But there are benefits that come to the technicians in the model in terms of the way they manage their day, their autonomy, the way they think about growing their own business to own territory, so as always, with pros and cons to the model.
