George Arison

You would be surprised, but twice as much demand happens for those cars as for everything else, even though they're older.

And so for that car, we actually do less reconditioning, right?

So there we try to have a lot more margin on the car itself, less reconditioning, because we know that we're going to make less margin on the warranty and the loan because the price of the car is so low, there's not a lot of margin to be made there.

On the other hand, for a more expensive vehicle, like a BMW that's only four years old,

you actually are okay making less margin on the car itself because you know that most likely somebody is going to get a loan when they buy that car and you'll make market there.

So kind of our goal overall is to make money kind of in aggregate right on the full transaction, knowing that some cars will make more money on the metal and some cars will make more money on the finance.

No, we'll still stick to about 15 to 20%.

but we'll do less reconditioning, right?

So we might make $2,000 or $1,500 on that car, but we'll recondition only $400 or $500 because buyers of those cars don't care so much about appearance.

They care about safety and the car running really well, but they know that they're not buying a new car or one that's in perfect condition on the outside in terms of what it looks like, but they're getting a car that's safe and good for $10,000 and all the cars are brought to them for a test drive.

So it's actually getting

a really great experience in a world where you're buying a cheaper vehicle.

Yeah.

We still finance and you make less.

We still sell warranties as well, but obviously less people choose to buy a warranty.

You're buying a $10,000 car.

You might not worry about that so much.

Now,

For us, we've been doing what we call value cards always, although we figured a lot out about them over the years, and now it's a pretty big part of our business.

It's about 25% to 30% of our business.