GPI
#You're welcome.
Well, I don't know that I can articulate in great detail versus some of the independents, but the factor that we have in our company is that 26% of our business comes from Toyota or Lexus brand franchises.
And these are car-driven franchises.
And to keep that machine running, we take a lot of car trade-ins.
And cars have been hit the hardest on used vehicle values, and we have to keep taking those to make the new car sales.
So that's one of the challenges that we need to overcome.
But that said, I would think there is still opportunity for us to have a bit more discipline and do a better job than we have in the past.
I would say we're quite open on brands as we look to grow externally.
And everybody would like luxury brands and so forth, but we have had success with virtually all brands.
And so it's just a function of geography and return on investment.
So I would say we're as open as we've ever been on brand.
No.
At this point ---+ we did our offering in December 2015.
We are very actively capitalized.
We have plenty of dry powder, so there is really no need for that at this point.
Yes, I think that's a good explanation.
The team has done a good job of making those trades.
Well, I do think it dictates that they will be tweaking up their incentive tactics or strategy a bit.
But we have to remember, leasing is very regionalized within the US ---+ Northeast, and California and Florida come to mind.
So, in many cases, they can deal with that on a regional basis, I think.
But I do believe that most of these companies that have done a lot of leasing, most of these brands, are going to be making some adjustments.
And there will be funds flowing into non-lease tactics.
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I mean, we have an internet presence today, and we do do some direct sales.
We use multiple channels, whether it's our internet, whether it's eBay Motors.
So, we are doing some of that today.
We have the capability of doing basically online sales.
Well, I would say there is an assumption of a slight decline in retail.
Yes, it is obviously less impactful on a global basis because you have less, but on a new vehicle, we are basically 62 days on a global basis.
Yes, you're correct, that is not material.
But it is, I think, 400 new and 450 used units.
So in the overall scheme of things, irritating but not material.
Okay.
Thanks, everyone, for joining us today.
We look forward to updating you on our first quarter earnings call in April.
Thank you.
