And so I can’t explain some of the commentary. I was sitting with Tim Keen earlier this morning asking this exact question is I just don’t get the commentary on the preowned inventory. The bad days are behind us. They’re not in front of us. And there’s inventory out there to procure. We’re seeing that. And I expect us to continue to grow with good margin throughout the rest of this year. It’s not going to be gangbusters or significantly marginally better, but marginally better throughout this year.
Rajat Gupta: Got it. Got it. Got it. I’ll get back in queue, you know, for more follow-ups, but thanks for, thanks for the clarification.
Jeff Dyke: You got it. Thank you.
Rajat Gupta: Thank you.
Operator: [Operator Instructions] Our next question is from Bret Jordan with Jefferies. Please proceed with your question.
Patrick Buckley: Hi. Good morning, guys. This is Patrick Buckley on for Bret. Thanks for taking our questions.
Jeff Dyke: Hi, Patrick.
David Smith: Good morning.
Jeff Dyke: Good morning.
Patrick Buckley: On the new GPU side, with the estimated ’24 exit range of about $3,000, should we expect a pretty steady progression throughout the year? And I guess into ’25, how does that compare to what you guys expect the new normal to be?
Jeff Dyke: Yes. So it’s Jeff. I think between $200 and $250 a quarter reduction as we move forward, getting us into that exiting ’24 in the $3,000 range. And I think it’s going to kind of hang there. There is a new normal for front-end margin. I don’t expect the manufacturers just – I mean, while they are going a little bit nuts right now, they’re going to pull back. I don’t expect them to just continue to go crazy on new car production, although EVs are going to play a role in all this. But I’m quite confident that in and around that $3,000 range exiting this year, we’ll be there and then I expect it to be in and around that range for ’25 as well.
Patrick Buckley: Got it. That’s helpful. Thank you. And I guess on that note, were there any notable callouts from a brand or region mix within new GPUs this quarter?
Jeff Dyke: No. EVs continue to be a little bit of a drag. As we announced in David’s opening comments, that’s about a $400 drag on the overall PUR and that’s being driven by a handful of brands. Our day supply on EV is fine. You really can’t look at the day supply overall numbers. You got to look at the actual units. I mean, we have a 60-day supply of BMW, EVs on the ground, but it’s at 600 units, and they’re cutting back significantly on EV production and coming more with hybrid. So I think the manufacturers recognize that they’re doing the right things. And I think that stabilizes everything as we move forward.
Patrick Buckley: Great. That’s all from us. Thanks, guys.
David Smith: Thank you, Patrick.
Jeff Dyke: You bet.
Operator: Thank you. There are no further questions at this time. I’d like to hand the floor back over to David Smith for any closing comments.
David Smith: Thank you very much, and thank you, everyone, for joining us, and we’ll talk to you next quarter. Thanks a lot.
Jeff Dyke: Thank you.
Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.
