Rajat Gupta: Got it. Got it. That’s helpful. Maybe a follow-up on AN Finance. The loss rate there it seemed like it improved quite a bit from 1Q to 2Q, just the total contribution from that, unless I’m missing anything else in the other line item there, but curious if you could clarify that. And then any color you could share on how delinquencies or charge-offs tracked sequentially in that portfolio? And any near-term trends have changed your view around the ramp-up of that business? And how do you view penetration there progressing through the course of the year?
Joe Lower: Just one or two questions, Rajat. I’m happy to talk about AN Finance. So it is progressing. As you know, we kind of stepped into some headwinds, but it’s progressing with a lot of attention and a very positive direction. We are very deliberately increasing the penetration within the AutoNation USA stores, as I mentioned, and 20% of loans now are coming — of the AutoNation stores are through AN Finance. That’s allowed us to drive down costs. It’s allowed us to improve credit quality. And in a marketplace that generally the delinquencies have been a challenge with the industry continues to be a challenge, but we’ve mitigated that by expense discipline. We’ve mitigated that by portfolio pruning. And being very deliberate in how we continue to build the book.
That book is very rapidly becoming an AN Finance dominator — AutoNation’s dominated book, which will continue as that really is obviously aligned with our strategy of penetration of the customers. So from a contribution standpoint, you’re correct in that it’s had sequential improvement in each of the quarters. I expect that to continue. But as we’ve indicated, it will be at a very governed pace given the environment and given kind of our strategic initiatives. So is there anything else on AutoNation Finance I can address for you?
Rajat Gupta: No, I think that’s very clear. I appreciate it and I’ll get back in queue. Thank you.
Operator: Our next question comes from Michael Ward from Benchmark. Michael, please go ahead. Your line is now open.
Michael Ward: Thanks. Good morning, everyone. First off, Mike, you mentioned that you thought maybe the vehicle manufacturers might turn a little bit more to interest rate or lease incentives. Certainly, you’re down at lows, and we’ll see that increase. Does that have any impact, positive or negative on your F&I or variable gross margins on the new.
Mike Manley: OEMs are very, very adept and well practiced at making sure that the pressure is equally borne unfortunately.
Michael Ward: Okay. Joe, you mentioned you talked about operating cash flow being $240 million. I think from what I can tell, most of the inventory increase was on the used side and that’s probably largely financed by non-trade floor plan, which is below the operating line. Are you including any of that increase in floor plan in your operating cash flow number of $240 million.
Joe Lower: No. When we talk about — so you are correct, and you understand the nuances of the accounting associated with trade and nontrade. So when we talk about it, and we’re going to try to make sure we clarify this further. When we talk about the $230 million that does have used floorplan in it, and that is the benefit of the increase of the used floorplan. And so it’s really a matter of tracking both what shows up in operations on the cash flow statement and effectively paid through the cash flow which is the financing activity. So you are correct.
Michael Ward: Okay. So that — and then you also had the seasonal $190 million in the care side…?
Joe Lower: Yes, that the way that — Yes, the way that the tax payments go, Q2 is an opportunity to contribute to our government. So that is always going to be the quarter where we have the substantial tax payments.
