We added some additional training in our dealerships around the country and some staffing around the country to try to help with the execution on used cars about a year ago as well and I think some of that is coming to fruition. So I believe those are things that are helping us. And we get, I mean, you know this we — just the advantage we have of being able to source things organically is just a real advantage for us. And so we’re — compared to the used car pure plays. And so we’re extremely fortunate to be able to do that.
David Whiston: And staying on that topic, I mean, on the consumer side, though, they’re really struggling. Are they — have you changed your mix in any way to make it worthwhile to them to pay up? Or are you just able to get better?
Daryl Kenningham: The ASPs are down a little bit, almost $2,000, I believe, year-over-year. So we are seeing that the pricing is coming down some. And we’re responding with the right stock to be able to do that, and that’s how we were able to preserve our gross margins. And so I think we’re being more responsive with what we’re stocking given the market today, that there’s more pressure on it from a price and payment perspective.
Operator: Our next question comes from Michael Ward from Benchmark. Please go ahead with your question.
Michael Ward: Thanks. Good morning, everyone.
Daryl Kenningham: Good morning, Mike.
Michael Ward: Two questions. First one, a quick one. Are you seeing any change at all in credit availability for consumers? And then the second question is more kind of strategic. It seems like you’re selling off some of the smaller stores and you’re growing some of the bigger ones. And I’m guessing like that should imply that the parts and service departments get bigger. Am I reading that correctly?
Daryl Kenningham: Mike, I’ll take your second question, and then Pete will take your first question. This is Daryl. You’re reading it correctly. You’re reading exactly correctly. We’re looking for our portfolio. We want to generally operate in clusters and generally with higher revenue rooftop stores where we can build and develop scale on a better basis. And that certainly helps us feed our parts and service business, which, for us, we consider one of our real strengths and something we invest heavily in. So, yes, absolutely. And when you look at our acquisitions over the last couple of years, whether it’s Beck & Masten, or Toyota North Austin, or Estebero Bay Chevrolet, they are large, high-revenue stores. And for Beck & Masten and Toyota North Austin, they’re right in the middle of a cluster of other stores that we own.
So ability to leverage scale and ability to grow and leverage our SG&A base and drive more parts of service are all key benefits in that case. And then on the F&I question and the buyers and the lending environment, I’ll ask Pete to speak to that.
Pete DeLongchamps: Mike, what we’ve seen with credit is it’s certainly available. And I think that our strategy of partnering with the big banks in all different credit tiers is certainly paying a dividend for us right now. There has been some tightening clearly on loan-to-value and some of their metrics. But with the way we run our business with audit and compliance, our loss ratios are in line or better than with all of our lenders. So we’ve had great partnerships. And I ask our operators all the time, if we lost car deals due to credit? And it’s — that’s a resounding no.
Daryl Kenningham: We’re also seeing the OEM captives really, really or get more aggressive right now. And I think that really helps us as new car dealers, obviously, give us an avenue to be able to rely on and support from them that they’ve stepped up with some additional programs and support as well.
