Rajat Gupta: Maybe on the used car business, execution was pretty strong. GPUs are still above pre-pandemic levels. Inventory under 30 days. Can you give us a sense of how you’re managing the current pricing environment? Maybe any comment on your approach on GPUs versus volumes? And do you see GPUs falling below pre-pandemic levels temporarily during this pricing transition period at all?
Daryl Kenningham: Well, the trade off on volume in GPUs, we want to err on the side of volume. Not that it’s volume at all costs. That’s never something we want to do. We price based on market value of those vehicles and we reprice constantly €“ daily, more often than daily in many cases. And we want to be at the market or better all the time. And then we want the volume because of the F&I attachment, which is a real strength for us. Also, that puts more units in operation out there for our stores and another opportunity for us to do parts and service business with those customers. So, philosophically, we like that volume versus GPU trade-off for that reason. Moving forward, if you look at it on a macro basis over the next couple of years, what firms like Cox are saying, which I tend to agree with them, is I believe we’re going to see somewhat of a shortage on used cars because of the pandemic-related SAR declines that we saw for three years.
And that will take some used cars out of the market for the coming three or four €“ couple of years anyway. And I believe that could support PRUs over the next couple of years. So, that’s something we think is probably going to happen, is the way we see it.
Operator: And our next question comes from Daniel Imbro from Stephens Inc.
Joseph Enderlin: This is Joe Enderlin on for Daniel. Just looking at the UK vehicle backlog, it sounds like that took a slight step down this quarter. Just wondering, do you think demand remains relatively consistent there? Have you seen any noticeable changes in the consumer backdrop from last quarter?
Daryl Kenningham: No, we haven’t seen any material change at all. And we’ve seen strength in that backlog and just minor changes. I wouldn’t take the changes quarter-over-quarter as anything meaningful or anything indicative of a different trend than what we’ve seen.
Joseph Enderlin: As a follow up, looking at the slides, it looks like customer retention has increased from about 70% to 88% using AcceleRide over the course of this year. Could you maybe provide some color on how much sure you think that platform is, how much optimization you have left, and then if you have any goals for next year?
Daryl Kenningham: We believe we’re in the first couple of innings of the AcceleRide baseball game. And we feel like it’s a customer platform that will help us drive retention and drive value and transparency for customers in a number of areas of our business. Not just in buying new cars or used cars, but in buying €“ but in them selling our their used cars to us, transacting with us, digitally payments, we believe there’s so much more we can do with AcceleRide to make that customer experience even better. And we believe that retention number you’re looking at is just indicative of how much customers value that experience of AcceleRide. We continue to see the usage go up every month, almost just every single month that’s going up. 75% of our customers use AcceleRide now in their transaction in some way. So we believe there’s still a long way to run with AcceleRide. We’re really happy with where we are.
Operator: And our next question comes from Adam Jonas from Morgan Stanley.
