George Arison

And so I just think, I think that company values are going to come down.

That's going to create a lot of challenges for companies in fundraising.

So I think we're lucky that we're not in that type of a situation for us.

And, you know, I do think that we will benefit a little bit from the counter-cyclicality in terms of demand for used cars, as usually happens in a counter-cyclical environment.

That's actually another reason not to be doing capital planning right now is because when the economy is weaker, you don't want to be doing your own loans because you just don't know what's going to happen.

Look, it's going to be tough, but I've been through tough before.

Shift has not been an easy ride.

It's been pretty complex.

And we are planning for it and we'll be in good shape.

Toby likes to joke that, hey, we go through a recession every year because the Q4 in this industry is very, very slow.

Unlike every other retail business, which is like Q4 is like really active for us, Q4 is very slow.

And so we're kind of always getting ready for a recession after a very strong Q3 because we have so much fewer sales in Q4 than we do in Q3.

So it's just a matter of like, yeah, it's going to be really tough, but we'll figure it out.

Right now, it's probably two-thirds comes from the car and one-third comes from the warranties and loans.

In a world which we want to be in over time, it's probably going to be closer to 40, 60, maybe even 55, 45.

That's the ideal world.

Really successful dealerships...

are actually closer to 60% loan and warranty and 40% metal.

But they also sell new cars and new cars have lower margins on the metal.

So it's a little bit of a different world.