David Whiston: Thanks. Good morning. I wanted to ask about your advertising spend. You’ve got a lot of mileage out of it recently with the Panthers sounds like finally you have one partnership and now Messi at the DRV PNK Stadium. And particularly with the F1 deal, just that’s a global sport, as you know. So I’m just curious if you’re laying the ground for international expansion.
Mike Manley: Well, that’s a good question. I’ve got to say that — and again, if you look at the relationships that been built up over many years, within AutoNation and consider those as assets. I think the team have done a great job, and you occasionally trip over an amazing opportunity as you’ve seen within to Miami. And I think at the end of the day, it’s going to be fantastic for the sport, it is going to be fantastic for the region. And obviously, with our name all over it, it’s going to have big benefits for us, and we’re already seeing quite a diverse change in some of the hits that we’re achieving on our media channels. As we’ve said, so you’ve got to put it in the category of what is — what is good luck and what is good strategy, genuinely falls into the category, good luck with that.
David Whiston: Okay. And with the trade-in values and everything else going on in the economy, I’m just curious, are you at all concerned that at some point, trade and values for consumers are going to come down while new vehicle pricing stays elevated to the point that it does hurt new vehicle affordability.
Mike Manley: Well, trading values are heading down now, they’ve been heading down since February, March, and they — I think they’ll continue on that normal pattern. But what’s also happening is, you’re seeing increases in incentive rates, you’ll see mitigation in new vehicle margins. So you’re seeing an offset. And as I said, that’s kind of the 3-legged still balance to get to a monthly payment that customers are looking for. I still think if you look at pre-pandemic levels, purely on the new vehicle pricing and incentive side, we’re still a long, long way from that. And there are a number of levers that can be pulled. So yes, I think you will continue to see trading values decline in a normal fashion, but I think there’s plenty of tools, particularly with the OEMs that they can deploy if they want to stimulate and maintain demand.
David Whiston: And just one more question on the — on EONs massive discounting of the Model Y. Does that at all hurt any particular brand for you guys, either on the premium side or volume brand in your crossovers?
Mike Manley: No. I think it’s — there’s no doubt in ripple through the marketplace and had a big ripple effect. I think one of the things — it’s so fluid at this moment in time. You saw the announcement from Ford obviously. And there are other pricing adjustments that are going on. They don’t necessarily get the headlines that those do. So I think I think where we’re at sat right now is we’re really try and understand what is the right net price for those vehicles in the market at the volumes the OEMs want to sell. And I think as a result of that, you’re going to see constant adjustments, whether it is headline adjustments with MSR fee or less visible adjustments with incentives. I think what’s important and where we’ve been incredibly cautious is in the used market because whatever is adjusted on MSRP or incentives on the front end immediately impact the back end.
So if you look at — look at our inventory, for example, one of the things that we are really focused on is if we have EVs in stock, which we do because there is a marketplace for those that we’re very, very focused on what price and what term rates.
Derek Fiebig: Thanks everyone for joining us on the call today. I look forward to speaking with you after next quarter.
Operator: This concludes today’s conference call. You may now disconnect your lines. Thank you all for joining.
