Bill Nash: Yes, look we could take it to a 100% tomorrow. It’s all depends on what you put on the vehicles. I think, we probably, I say this, we probably would never get to a 100% self-sufficiency because You’re always going to want to have little pockets of inventory that you’re going to want to supplement or whatever. But again, our goal is to drive as much as — drive it as high as possible. It’s been pretty steady in that 70-ish, in that range which we feel we feel good about. And again, I think the key thing here is, it’s not only on the retail cars, but we’ll also buy every wholesale car as well, so we’re absolutely focused on that.
John Murphy: Okay. All right. Thank you very much.
Bill Nash: Thank you, John.
Operator: Our next question will come from Chris Bottiglieri with BNP Paribas. Your line is open.
Chris Bottiglieri: Hi, thanks for taking the question. Hope you could elaborate more on compensation expense. I know you said you’re lapping cost cuts, but it seems like that compensation cost cuts have sequentially ramped each quarter. So my question is like, if you look at the full year CAGR that’s got in particularly better relative to units particularly Q2 versus Q1, are you still actively reducing headcount if unit trends maintain normal seasonality from here what would happen to compensation? Would that also behave normal or would that be better or worse than normal seasonality?
Enrique Mayor-Mora: Thanks for the question, Chris. Yes, at this point with compensation, as I mentioned in our prepared remarks, we have pretty much anniversaried over the benefits of some of the stronger levers we put in place. So when thinking of compensation that I would think of that for the back half of the year one or more pressured clients, if you will, relative to what we’ve been here for the past couple quarters. So we’ve copped over those levers. At the same time, we go through the decision process at this time of year about staffing for tax time, right? And depending on what the expectation is for tax time, we start to ramp up our associate level there as well. So I do expect compensation will be one of the line items moving forward that will be a little bit more pressured relative to what we’ve been for the past few quarters here.
Jon Daniels: Yes, Chris, and just to bring it to home with some numbers, if you look at a year ago staffing wise, total company we’re down about 3000 or so associates and that’s pretty consistent with what the first quarter was as well. So we’ve kind of, as long as we’re keeping staffing to where we feel like we need sales to Enrique’s point, it will be, the back half of the year will just be you, you won’t see as much pickup there.
Enrique Mayor-Mora: Yes, which we believe we’re appropriately staffed. So those cost management efforts we undertook successfully at this point we’re largely successfully staffed and appropriately staffed and so…
Jon Daniels: Yes, the only other thing would be that, and Enrique touched on this in his earlier remarks for everyone to keep in mind is as the back half of the year progresses, that’s generally from a seasonality standpoint when we start to think about next year’s tax time and building for that and so that generally requires a little bit larger headcount. So we’ll be monitoring that as we go through the back half.
Chris Bottiglieri: Got it. That makes sense. And then just quickly on car buying, I think you called that out, it seemed like it was July and August when pricing was the worst, or sorry, June and July, as pricing kind of stabilized a bit in September and lesser extent August, have you seen, are you buying cars more often or more frequently higher conversion from customers, has that kind of trend maintained its pace?
Bill Nash: Yes, so June and July were the worst. August actually was up a little bit and then September [indiscernible] data is probably flattish to a little bit up from a depreciation standpoint or in appreciation standpoint. So I would call August and September fairly similar, but it was a reversal of the steep depreciation. And I think as we look forward to the rest of the year, I think what we’ll probably see now, this is assuming no other macro factors and obviously there’s a lot of things out there, especially when you start thinking about the strike, but outside of that, I would think, we would continue to see probably more normal seasonal depreciation barring any other new event.
Chris Bottiglieri: And that helps your car buying, like you expect that to pick back up from here or is that, or do you think it’s like the level?
Bill Nash: Well, I think what that does is it does a couple of things. One, as depreciation continues, obviously that feeds out onto your front lot prices, so I think that helps some on the affordability issue. I think also more stable depreciation. It just makes it easier to run the business. We do a phenomenal job and the team did a phenomenal job even with that steep depreciation that we saw in the quarter, but when you’re starting to see normal depreciation, that’s just, that’s kind of business as usual for us.
Chris Bottiglieri: Got it. That makes sense. Thank you for the help. I appreciate it.
Bill Nash: Thank you.
Operator: Our next question will come from Rajat Gupta with JP Morgan. Your line is open.
Rajat Gupta: Great. Thanks for taking the question. I just had one question, one clarification. On retail GPU it was a little larger than seasonal decline in the second quarter versus first quarter, last 10 plus years, the average sequential move has been $50 lower. I mean this quarter was more than a 100. Just curious if there were any one-time items that impacted that or were there any pricing tests, anything you would call out? And one clarification.
Bill Nash: Yes. Thanks for the question, Rajat. Yes, when I think about this quarter, actually, I’m pleased. I’m pleased because we talked about last quarter coming in to more in line with where we were last year, which remember last year was a record high for us and as you pointed out, I mean, $30 is within the, in the noise for us. So, I feel good about that, especially considering the environment, that’s out there. I think, the first quarter obviously was a record high, and I think there was some dynamics in that quarter where you purchased the vehicles and then we saw some appreciation in that quarter, which keeps you from having to do markdowns, that kind of thing. So I look at the first quarter as more of an anomaly, which is why we set the, said what we did last quarter.
We thought we’d be more in line in the second quarter with the second quarter last year. And we reiterate, we think we’ll be more in line for the whole year with the whole year of last year, which is still a step up from where we’ve historically run of $80 to a $100.
