Chris Woronka : Okay, very helpful. Thanks, Joe.
Operator: And we have our next question from Ryan Brinkman with JPMorgan.
Ryan Brinkman: Good morning, and thanks for taking my question. And thanks for the comments on capital allocation including fleet week debt paid down versus repurchases. The allocation pivot there in 3Q like you indicated it would. Maybe just as a follow up. Now given the changes in use vehicle prices and I guess $1 billion now these voluntary contributions in your vehicle programs but first nine months of the year, I just wanted to check in on like what percent equity you have across your programs or in your biggest vehicle programs currently, versus the amount that you’re required to maintain. I ask firstly, to understand, like how much cash you could potentially take out if you wanted to for repurchases or anything else. And then secondly, to maybe understand I guess, conversely, like how much of a cushion there might be there now in terms of, you know, what percentage decline and used car prices it would take before you might be required to put more cash into the programs assuming similar fleet size, et cetera.
Brian Choi : Right, I’ll take that question. In terms of the equity question that we have, you can take a look at our press release. We listed out every quarter what our vehicle assets are and what our liabilities are under our vehicle program, subtracted two that’s a good proxy for the equity that we’ve paid equity we have in our fleet plus the additional contributions that we’ve made and as you can see, that ratio has been growing kind of in favor of the assets and that reflects kind of the voluntary contributions that we’ve made to that program. You know, we’ve mentioned before that we can — what our advanced rates are, that’s remained fairly consistent, so we can go in the high 80s in a lot of in a lot of markets. We’ve chosen not to do that.
Like I said, the further down we go on our refinance into the C tranches, and the D tranches. Those are becoming close to 10% down 8%, 9%. And you’ll kind of concede you’ll see us continue to forego refinancing at those high rates as those term debts come due. So we feel really good about where we are in terms of leverage ratios there. Again, you can see the assets which we’ve marked on a monthly basis here and how much higher that is and the liabilities we have. So you can kind of calculate with the cushion is over there. And in terms of in terms of capital allocation, as I said, on the prepared remarks, we still believe that our shares are undervalued relative to the fundamentals around our current and future earnings trajectory. We repurchase shares yesterday, and we still have $1 billion remaining in our buyback authorization.
But we’re not going to be formulaic when it comes to capital deployment. We evaluate the full spectrum of options from M&A, CapEx, debt repayment, dividends, one time or regular and of course, share repurchases. So we’ll continue to allocate capital to those areas that best benefit all stakeholders.
Ryan Brinkman: Very helpful. Thank you. And then just on EVs, what is the number of electric vehicles that you have globally? What are the brands there that you’re most exposed to? And are you thinking any differently about how quickly you might onboard EVs or what percent of your fleet you might expect them to rise to over what period of time. You know, just in light of the lower electric vehicle prices we’ve seen this year and so I assume higher depreciation and maybe some of the direct operating cost implications to as highlighted by one of your competitors.
Joe Ferraro : I’ll take that. Trying to answer it, you know, thinking about a little bit about strategy and then give you some insight to where we are as far as — I we wanted to be consistent and measured in our approach to EVs and our strategy for nice centers around a few principles. First thing we wanted to do was make sure we had an infrastructure. Everything we heard was that you know, EVs were going to be very prominent as far as manufacturing goes. And obviously that changed over the last couple of months but we wanted to make sure that we had an infrastructure capable to rent these at a utilization level that’s commensurate with our utilization levels on gas cars. So like I said, in answer this question, I’ll give you an insight to where we are in our on our level of cars.
But I think when you look at our EVs strategy, it’s centered around three real principles. We wanted to be consistent and measured in our approach. First thing was we need an infrastructure to support EVs, especially in our airports. And we spent the last year and a half doing just that, so uncomfortable with our infrastructure is, yeah, there are more inputs coming online as the grid levels increase at certain at certain cities and airport authorities. So we will we will continue to do that. The second is we wanted to have cars of different makes and models and, you know, from different OEMs similar to the way we run our gas car fleet, we believe that gives customer choice. It allows us to insulate us a little bit from maybe recalls, other maintenance related costs and certainly of late residual value pressures associated with some of the price declines.
We’ve seen in some of the in some of the cars that are being produced. And third, you know, the majority of business occurs at our airports and we wanted to make sure that we had the ability to rent cars to consumers that fly into our locations. So we spent a good deal of time trying to organize ourselves around that demand level. It gives us the opportunity to have our best margin outcomes on vehicles of that nature. And it’s the eighth typical type of vehicle that we rent, you know, as far as gas cars because that’s where the lion’s share about our businesses. I think what I liked most about it is we have ultimate flexibility. There are EVs available, you know that the manufacturers want to sell. And, you know, right now we are very much looking at keeping our EVs in line with our demand.
