It gives us an opportunity to get more share because we strongly believe we’re the most transparent marketplace available to consumers. And as we give consumers the ability to do a pre-qual or to do a hard pull, or to get a near penny perfect deal, or to get a trade-in offer, then we’re also going to be much more valuable to dealers because they’re not going to get people coming in who are excited about a car only to learn that they can’t afford it. So I do think that our transparency and the features that we have on our site, digital deal being a great example, gives us an opportunity to really shine in periods where consumers are much more sensitive to their payments. Also, it’s because of our premium model, we have the most inventory on our site.
And by having the most inventory, it allows consumers more optionality as they search for lower price cars in this case.
Sam Zales: Jed, I’ll jump in on the second one, which is a good question about Sell My Car as a subscription business versus anything like a pay-per-lead business. We went to market after customers asked us to build this product and built it in pilot phase and then came to market through testing and trial and obviously now in 18 regions. This explicit feedback from dealers is I’ve got a budget. I want to set a budget. I want to look at my budget and manage it over time. And if it were on a pay-per-lead basis that wouldn’t be too variable for me, I can’t control when it goes up or down over time. Instead, what they’re doing with us is paying a subscription for a block of those opportunities. So being able to say, I’m going to buy a block of 100 of those leads that gives me an opportunity to manage my budget.
Fortunately, right now, we’re in such a mode where consumers are buying into this Sell My Car top dealer offer and more — we have more demand from a consumer side than we expected to have. So now we can go out to dealers and say, buy a second block, by a third block. But they’re able to manage that in a budgeted way as opposed to as a variable on a per lead basis. So they preferred that. And for us, it’s terrific because it’s a predictable subscription with monthly recurring revenue, which runs at a margin and more like our core listings business. We’re also selling to the same customer, which is wonderful. We’re going out to be marketing leader who’s saying or the General Manager of a store saying, I want leads for buyers, I’d love leads for sellers, from consumers, so I get more inventory.
I can sell that at retail, and I own the budget for marketing to go acquire those customers. So it’s a perfect win-win for our business. We’re really proud of this new product we launched recently.
Jed Kelly: Thank you.
Operator: We have reached the end of our question-and-answer session. I would like to turn the call back over to Jason for closing remarks.
Jason Trevisan: Thank you. So I just want to thank everyone and thank our employees, certainly, as we did, thank our customers and our shareholders. Thanks for your — we appreciate your interest, and we hope you share our enthusiasm for our momentum in our core business and innovation on all these new products. Have a great evening, everyone.
Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time, and thank you for your participation.
