Sharon Zackfia: Hi. Good morning. I wanted to actually ask some questions about Sky because I don’t recall you talking about Sky previously. So how – I mean, how far do you think you can take, I guess, what I’ll call an AI technology to help kind of make the CECs more efficient? And how should we think about if there’s any kind of step-up in investment that would be related to kind of enhancing or optimizing Sky further, if that makes sense.
Bill Nash: Yeah. No, great question, Sharon. First of all, just AI in general, I think we’re bullish on AI in general. We’ve been using OpenAI for a period of time now. We think about it, there’s lots of opportunities to enhance our associates’ work, maybe take some of the more mundane stuff out. Particular to Sky, we talked about Sky, I can’t remember if we’ve actually named it Sky in the past, but we talked about a virtual assistant. So that’s what our virtual system that’s called is Sky. And we’re really pleased. One of the things that we’ve been on a path to is really making our CECs as efficient as possible and leveraging our associates for the really value-added work. And this quarter with the improvements that we saw with Sky, we really deflected a good amount of calls to the CEC that Sky was able to handle independent of calling in.
And the areas that we put in there were the prequel, the transfer process and appointment setting. And the way that it’s working right now, which I think is really kind of the first version of it is, Sky hooks them up with a link. We see a world where Sky will actually interact back and forth and not even necessarily have to hook up with a link. So I think that’s an enhancement. Another enhancement we’ll be looking at is just integrating IO with Sky. So I think there’s opportunity — still a lot of opportunity just in the CECs with Sky, but I also think there’s a lot of opportunity just AI in general. We’ve used it in training our CECs consultants, and we think there’s additional possibility there. We’ve used OpenAI to assist in our vehicle reviews and customer reviews, really allowing our content team to focus on more insightful stuff.
And like I said, we’re working on a proof-of-concept, a knowledge proof-of-concept for our CECs to allow them to access very specific state information. So again we’re excited about it.
Enrique Mayor-Mora: What I’d say as well just building on that is Sky has been a pretty strong contributor to helping us get our operating model even more efficient than where we’ve been in the past. We’ve shown sequential improvements now in quarter-over-quarter costs when it comes to the CECs and the operating model, and that’s on a per retail unit basis. And when you consider total units, so use and wholesale or even gross margin dollars, we — the progress has been even stronger. So it has been a pretty material — it’s had a pretty material impact to the efficiency of our model, and it’s contributing to the SG&A gains that we’re seeing.
Sharon Zackfia: Thank you.
Bill Nash: Thank you, Sharon.
Operator: Thank you. Our next question will come from John Murphy with Bank of America. Your line is open.
John Murphy: Good morning, guys. Just one very quick follow-up. Is there a way to quantify the timing that you got from — or timing benefit you got on SG&A from the non-CAF uncollectible receivables just in a dollar sense?
Enrique Mayor-Mora: Yeah. I would say the timing was not all that material in the scope of things. I’ll give you a dollar number, but it’s not all that material in the scope of things. The majority of the benefit really was from that improvement in execution, from our stores, from our home office and from the DMVs as well.
