Thomas Shortt: Yes. So let me give you some color on that, Sam. So we’ve been selling — it’s actually a metric we track. We started tracking in Q2 and Q3 aged vehicle sales. And as we really drastically changed the way we think about pricing vehicles, I’ve been quite surprised by, we have cars that, frankly, we’ve had greater than 180 days, even greater than a year that we’re producing very strong GPPUs on. So we’re being very — been level focused on optimizing profitability on every vehicle, regardless of its age. It’s clearly our long-term goal to drastically reduce our inventory and get inventory down to something more reasonable. And whether that’s 60 days, 90 days, 120 days, I can’t tell you that yet. But we’re going to see when we get there.
So during Q2 and Q3, we have been selling a mix of vehicles that are aged. As we’ve worked throughout the year and really got to where we want to get to on registration, we’ve been working on titles all along. But now that we’re getting registrations where we think we want them, we’re doubling down on titles. So what we’re expecting to see is an influx of these titles coming in on vehicles that have been sitting for quite some time. We expect that those will still be profitable sales, just lower profits. So to get to your answer, if we were to end the quarter right now, I would expect GPPU for Q4 to be somewhere in the low 3s. It’s early in the quarter. I wouldn’t be surprised if that number could go as low as $2,500 or as high as $3,500, depending on how things go the rest of the quarter.
We do see this as a short-term issue, solely related to the delay in the titling process, especially as the depreciation rates of used cars have increased a bit lately. So we see this as a transitory issue that once we get this behind us, we will not recur.
Operator: . Our next question comes from the line of Colin Sebastian of Baird.
Unidentified Analyst: This is Colin Lee on for Colin Sebastian. Could you please talk about the impact on the model from the transition of the Stafford IRC to TDA?
Thomas Shortt: Yes. Thanks for the question. We don’t see that as a significant impact. It’s going to reduce our fixed cost by several million dollars once we exit the current facility, it’s going to provide a much better environment for Vroommates that work in that reconditioning center. So it’s really about creating a better environment. We’re going to remove the fixed cost of the current Stafford location, but we don’t see it as something significantly material.
Operator: Our next question comes from Vincent Kardos of Jefferies.
Vincent Kardos: This is Vincent Kardos on for John. Curious to know what have you guys seen, thus far, in Q4 in terms of retail demand for used cars? And the trend seem to be kind of the same across the consumer credit spectrum and for higher and lower-end cars or more like what we’ve seen earlier in the year? And then as a follow-up, if you could talk about your outlook for used car demand in 2023, that would be great as well. Anything to sort of help us get some insight into pricing expectations and expectations for demand going forward would be helpful.
