Jon Daniels: Yeah, I agree, Bill. I mean, certainly, the prime customer is probably a little bit older. But I think when we are looking at our underwriting platform, our underwriting criteria and our models, we’re always going to take into account total outstanding debt for the consumer evaluate the things that are most predictive of auto loan payback. And so that would be contemplated in our underwriting criteria.
Craig Kennison: Thank you.
Bill Nash: Thanks, Craig.
Operator: Thank you. Our next question will come from Daniel Imbro with Stephens Inc. Your line is open.
Daniel Imbro: Hey, good morning, everybody. Thanks for taking the questions.
Bill Nash: Good morning.
Enrique Mayor-Mora: Good morning.
Daniel Imbro: I wanted to start on our focus on the SG&A results, obviously impressive in the quarter. Maybe two-parter related to that. First, within other maybe overhead, historically, I thought a lot of that was IT kind of e-commerce investment. Other than headcount reduction, can you maybe talk about Enrique some of the operational changes you made to drive that improvement in that line item and maybe the sustainability? And then related, I think you said there was a onetime benefit from the timing of some CAF receivables in the quarter. Could you quantify that just to help investors underwrite that outlook as well as in the SG&A line? Thanks.
Enrique Mayor-Mora: Sure. Great. Thank you for the question. Yeah, let me take it kind of one by one. So let me first define non-CAF finance receivables. We haven’t talked about it too much in the past. We have a little bit, but not too much. So those are primarily loans that are financing partners issue to our customers that we end up writing off either due to title processing issues or down payment obligations. And if you go back to when we emerge from COVID, we had low staffing, we had high turnover and there were a lot of DMV delays, right? And emerging from that, we’ve re-staffed, we’ve trained up our stores, DMVs are moving faster. So we’re actually able to kind of catch-up on these non-CAF finance receivables and execute better.
Stores are executing. Our home office is executing. And again, the DMVs are executing as well better than they were. And as a result, we’ve seen some favorability in that line. I did talk to some favorability due to timing. So part of that is due to timing. What I’d tell you, that’s not timing that will come back and hit us in the future. It’s more of a change in estimates that we have and what we think we’ll be writing off. So it’s a little bit more of a hindsight change, so it won’t hit us moving forward. So that’s number one. That was kind of the biggest favorability we saw on the quarter year-over-year. As well, we did see some favorability related to headcount, which I mentioned, related to staffing levels. Specifically, as we’ve staffed down and rightsized, we have favorability in relocation expenses, as you’d imagine, in recruiting expenses, as you’d imagine, but then also in casual labor.
And all of those hit the other bucket. So we see favorability there. We are still seeing a little bit of pressure from decisions we made in prior quarters on our technology and strategic growth. So that’s still growing a little bit within that bucket, but it’s being offset pretty materially by the other areas.
Daniel Imbro: Okay. Thanks for all the color, guys.
Enrique Mayor-Mora: Okay. Thank you.
Bill Nash: Thank you.
Operator: Thank you. Our next question will come from Sharon Zackfia with William Blair. Your line is open.
