Justin Long: Got it. And last question for me is on the used truck market. You talked about that a little bit earlier. But I was wondering if you could give a little bit more color in terms of what you’re expecting for the trend in used truck pricing as we move into year-end and early 2024?
Rusty Rush: Sure. Well, we’d probably come down same like-for-like four, five year-old trucks year-over-year, September, October let’s say around that time frame 35% in value. There may be another 10% to take out or so I’m guessing? I don’t – it’d be hard for me to see it go much more because what happens is that spread between new and used gets real – I guess too large as all of a sudden you can go by three late model trucks for the price of one new. So that eventually when I say that it yes, but whatever that spread creates a value proposition on use when it gets so low. The problem is that the used truck buyers typically the small person, right? Well they’re getting crushed. So you got to have demand too, okay? You can take price as cheap as you want.
Now that’s truck that’s spread looks really enticing. But if you don’t have demand because you don’t have any market to go lease a truck on some place, it makes it difficult. So eventually, it just takes time. So right now we’re – it’s a little bit higher. Like I said, depreciation is accelerating not as dramatically as it was but it’s still over what I would call typical depreciation by percentage on a monthly basis. So, typically you don’t see it like historically, we’re not there yet. It’s still a little accelerated. It’s that demand piece that we’re going to have to get back. So I just – I don’t see anything changing around that until we get maybe – that we saw out in the spring. And hopefully, we’ll do it seasonally, we always do a little better than once we get through winter time.
So that’s — I would hope that we would have by the time we get through that we would be on a normal depreciation cycle in say four to six months, six months from now something like that. That’s what I’m hoping, because it’s been so accelerated before. But the reason was to accelerate they got way too high when you couldn’t get new trucks, right? The money people were paying for used trucks 1.5 years and two years ago is crazy. And so we’ve had to take all of that back out as we continue to now meaning the demand with business of used, demand is down and use values still down. It’s just — it’s a little bit of a viscous cycle, but it should straighten itself out sometime second quarter next year late for second — second quarter next year to be safe conservatively.
But we’re in good shape. We’ve got this lower used truck inventory. The upside for us is probably a little less because we’re carrying less inventory. But the downside is okay, we’re trying to get our turns. It’s always about turns and your turns have to be in line with what demand is. And we feel like we’ve pretty much got our used truck inventory what we know we do. Our margins were back to typical margins in Q2 and Q3. So we’re just going to stay on top of it and be cognizant of the demand that’s out there. And we still trade for trucks every day. It’s just — we just have to make sure that we can turn them fast enough because they’re not like fine wine they don’t get better with age. So — but we’re doing a good job of dealing with it right now but it comes with a tighter controlled inventory, because demand is not — sometimes we would have inventories upwards of 2,500 units.
