Sabahat Khan: Okay. Sounds good.
Operator: Thank you. Your next question comes from Maxim Sytchev from National Bank Financial. Maxim, please go ahead.
Maxim Sytchev: Hi. Good evening, gentlemen.
James Kessler: Hi. How are you?
Maxim Sytchev: Good. I was wondering if you don’t mind maybe commenting around sort of a lower magnitude of hurricane activity and how that impacted the auto business in the quarter? I presume it was margin accretive, but any way that you can maybe quantify that would be helpful. Thanks.
James Kessler: Yeah, So Maxim, you mean what it was from last year since there was really nothing this year.
Maxim Sytchev: Exactly, yes. Yeah. Just — yes, so we can sort of gauge kind of the cadence on a going-forward basis.
Sameer Rathod: Yeah. I’m not sure if we’ve quantified what the CAT impact in terms of GTV it was in the third quarter. of last year. Let me take that away, and I’ll get back to you on that.
Maxim Sytchev: But maybe just directionally, so like more activity kind of negative to margin less better from margin. Is that how we should be thinking about this?
James Kessler: No. For last year, the CAT event was accretive to EBITDA. So with the level of volume, it wasn’t negative for IAA. So I would think about it as it was accretive in last year’s numbers when no CAT events this year. But kind of think about less than $100 million type of level, but definitely accretive from an EBITDA standpoint.
Maxim Sytchev: Okay. Thank you. And then maybe just going back to sort of the CapEx expectations. I mean the first question, I guess, what is that really going to generate for you guys in terms of returns? And should we expect this kind of bump to 300 to start moderating and by when and how much like — any color you can give there would be helpful. Thanks.
Sameer Rathod: Yeah. No. As we described in the script, Max, these — either we’re making these investments for strategic reasons opportunistically, we’re able to purchase land in some cases, below market value since our leases are up. We’re not going to quantify the exact impact. It would show up in our cost of service next year. And then no real outlook for 2024 CapEx. But we’ll stay tuned and we’ll give you more color on that next quarter.
Maxim Sytchev: Sorry, just to clarify, so cost of service will go down on a prospective basis?
Sameer Rathod: Yeah. I mean when you buy property, you’re reducing your rent expense. But at the levels we’re doing, we’re not we’re not giving any specific numbers around the exact dollar savings or the margin impact. But where you would see it is in the cost of service.
Maxim Sytchev: Okay. That’s helpful. Thanks a lot.
Operator: Thank you. Your next question comes from Michael Feniger, Bank of America. Michael, please go ahead.
Michael Feniger: Hey, everyone. Thanks for taking my question. Just one, Jim, you kind of discussed earlier around the V shape versus the U-shape. And your goal is to kind of slow down the market share flatten out and grow it. And just kind of piggybacking off the last question, I know you guys raised your CapEx, and just going forward, given this customer loss, is your assessment that you need to invest more to kind of achieve that U-shape? I understand you’re not giving specifics on 2024. But just with your assessment and taking over, is it that we need to — is this going to be a higher CapEx, maybe even more investment in the business to kind of get that U-shape? Just curious like how you’re kind of thinking about that, not looking for specific numbers, but if there is a little bit more intensity that’s needed for us to get that U-shape
