Wake up, Buy Here, Pay Here people. It's a beautiful day. Go grab yourself another cup of joe and say hello to Jim and Michelle Rose on the Buy Here, Pay Here morning show. Take it away, you two. Good morning. Buy Here, Pay Here people. Oh, we got that echo. We got some audio issues over here. Right there. Testing. Yay. All right. So if you're listening live, give us a little sound check. Make sure that we check, check that we sound okay. Yeah. Because this happens. Sometimes it sounds right on our side, and then it's not broadcasting properly. So all good. Man, there's a ton of stuff to talk about today, Michelle. There is. There's a whole lot happening with us behind the scenes, and we don't need to talk about all that today. But I would just say that there's a couple of announcements that have come up. First of all, we need to let everybody know we are going to be in attendance at the BHB Super Forum. I guess it's not called the Super Forum anymore. in Austin. But it's a buy here, pay here specific event. You can find the details at NIADA's website. We would encourage obviously everyone to be there. One of the things that came out in the email just this morning, we heard that they intend to do this, but they're doing site visits this year. In groups. In groups. So those who are in attendance, dealers, will be able to go out and visit some of the dealers in the area, which I think is wonderful. That's a really great opportunity you know as a former twenty group member we used to do site visits as in a twenty group and would take turns kind of visiting the different members and there's a lot to be learned from that so i would encourage dealers to be a part of this forum you know the biggest part of the structure of the forum is they have a lot of round tables like the ideas for dealers to speak to dealers and create that sort of environment and so i i encourage people to tune in for that be part of it fly to austin join us yeah it'll be uh it'll be great and we're also um yeah we we yeah we'll be there yeah it's like i can't say the things yeah there's some stuff that's not official yeah there's some stuff that's not official but there's more to come um from us and from other things around what's what's going to be happening then uh at in austin for sure And so we're kind of toying with a little bit around maybe doing a VA gathering or something like that. So yeah, we haven't fully decided yet, but yeah, we'll see. And there's a football game in Austin on a Saturday. We will be attending that. Yeah, we expect to be there for the football game. Which is on Halloween. So do we come in costumes? I don't think they're going to want me in an Oklahoma State outfit in their stadium. Maybe. I don't know, but that could be fun. Former competitor. Yeah. Yeah. Anyway, so shall we get to our business of the day? I think that's a great idea. Yeah. This is a big, big subject and there's a lot of precursor information like lay down some of the information about the assumptions that are going into what we're going to talk about today. But, you know, this is not new for us. There's some elements to what we'll talk about today that are new data points, new information that is kind of an update with something we just do periodically and do it more with consulting clients than we do like in a V-A environment. but because we did this last month with some of our members and because it's sort of validated some of the things that we've talked about on the podcast before certainly as a coach i've been working with dealers around this and i think what's happening now is we're getting more information that supports this idea that we should continue to track and we will continue to track a forecast of what our members in our peer group situation, what our members projected yield or earnings looks like across twenty four months. And first off, let's talk about why twenty four months. Lots of reasons for twenty four months. We don't need to go into all of them today because we'll be covering this in the coming weeks. I've already made a decision. We're going to talk about this probably every Friday in October because there's just so much to talk about and explain. And I think, you know, I'm a numbers nerd and we work with other people who are numbers people. And within our peer groups, there are certain people that are numbers focused and some aren't so much. You call yourself a numbers nerd and then you went numbers people and number focus. Are they all nerds? I'm going to let them decide. I'm a nerd. Yeah, I'm going to let them decide for themselves, but I don't want to put that label on anybody else. But I work with, we work with people who do see the importance of the numbers and they'll make adjustments, right? And they ask, what do the numbers tell you, Jim, or now DW as part of our team, what do the numbers tell you that, you know, it's just something I could or should change, right? So this, as DW says, like there's, no point in bringing numbers if it doesn't allow a dealer to see the information in a way that helps them to take corrective action if there is something to be corrected see it understand it act on it and then like uh currently in the v-eight format um the the where you get suggestions to correct it is in the is in the actual meeting it's like you know you'll like how do i correct this and then you can have the conversation you're a part of it or whatever the moderator is and also the dealers um around you know what are some what are why is it that you are doing so well here so it's it's what i'm what i'm drawing out is that the being in a room full of dealers and you know jim uh is a former dealer and all of that that that you're able to you know when you see something that needs to be corrected And then you're able to have a conversation around what should I do and how should I fix this? So. And as a moderator, I always try to, and obviously we have our own perspective based on years of experience and working with lots of dealers and lots of numbers, but I try to make sure that the dealers hear from their fellow members and stuff. Like here's the, everybody's seeing the numbers. Like, what do you think? And by the way, just as a quick aside, so I don't forget to say it later. The data that we're going to look at today, even though this is just a small representative illustration, it's dealers that have been in business for, I think all of them have been in business for twenty years. Eighteen would be the least, I think, of this particular group. So you're talking about established portfolios, mature, They've been in it long enough to know their business, choose their business model, you know, dial in their deal structure. And you're going to see quite a bit of deviation between these four dealers. There's one lease your pay here dealer in there. Actually, no, two lease your pay here, two buy here pay here. So, lease your pay here or just kind of a hybrid? Well, the numbers, one of these dealers is a hybrid, but I would say that ninety percent of their data is lease your pay here. Okay. The other is a hundred percent lease your pay here. And the way we do our data, it's, we, we work to make them correlate. We ask lease your pay here to conform to a buy here, pay here sort of reporting structure. And so it really stacks up the same. So. It's just one. It's a really good thing. I don't come to be at meetings. Probably because we have conversations around these topics and I'm just like, she jumps way. I think, well, that's my superpower. It's not just thinking ahead, but it's just like, I see things in, in systems and like, okay, so I know that this and this and this and this are connected. Because I understand the system well enough. And so how does it change that? And so when we were having a conversation about this, Jim was like, okay, that's another topic. Okay, that's another topic. So it's probably a good thing that I don't come. Well, we have to stay on. And we're even compressing. We're going from a nine-minute meeting to try to compress down to a six-minute meeting, some virtual meetings each month. All right. So the thing let's, let's get something on the screen here and then I'll explain it kind of, as we go, this is the basis of today's conversation and it's for dealers. And, you know, of course, as we work through this, we capture more information from our members than this kind of pool will grow. so this is again it's there's visuals and so if you're just listening you might want to jump over to youtube right um and watch the things we'll try to give you um verbal readings of it but yeah so yeah let me try to describe what folks can uh originations active uh-huh at the twenty four months greater than twenty greater than twenty four months this is a study like some in the in the finance and months is because that's really just always been a marker for you to track things. If you can get to twenty four months, you're going to see a really good visualization of your future protected and i can give at least five reasons why we picked twenty four months i don't think we need to go into all those today we'll be covering those over the coming weeks as to why this is relevant but i think what i would ask our members today if you're a vendor in the industry if you're a dealer and lease your pay here buy your payer new mature whatever I would ask you to look at this slide and ask yourself, is the information on this single slide, is it relevant to a dealer's decision-making about their business model and how they structure their business and maybe what levers can be adjusted in their business? This basically tells us and the bars in green. So again, we'll give a description for those not seeing the screen. So what you're seeing is four dealers that are, and these are actual numbers from August of twenty twenty six. This is a sweep of their actual portfolio. And so while some of what we're going to talk about might be And these are dealers, again, that have been in business for twenty plus years. So they're not newbies. That's right. They've been doing this a long time. They have their business model there. So, yeah, they've. Yeah, they're well established. So and this is why I think I just want to keep it simple, work off of the small illustration, because it's it's you know every dealer's numbers might be a little bit different and even with this this group i've got some other numbers over here to share that aren't on the slide but let me just kind of describe the slide michelle let me kind of work through that that what we got is the green bar in the front is the percentage of accounts that are over months percentage of the entire portfolio in dollars. Okay. So that's why we just chose green. There's like that's in dollars. So for those not seeing the screen, the dealer with the most portfolio principle, we're just looking at principle. The dealer with the most principle in their entire portfolio outstanding is ten point nine percent. And the smallest one is six percent. So what does that tell us? I mean, about these dealers? Well, I would ask our listeners for today, I would ask our listeners to say, what does it tell you? Does it surprise you? Would you think that dealers would have more than that? is that you're collecting on is from accounts that are over twenty four months. And let me clear up. People are going to see this and ask. We treat the residual balance in a lease like principal. it's just deferred principle if you will so we bring it back in like it's it's principle so we treat it as active principle and so you can look at that and say okay well i would for today again i i don't i don't want to force my views on anybody yes i'm a coach yes we work with a lot of numbers but i think the point here is to really start a conversation and ask dealers and all of these parties across our industry to ask is this information that matters and and how How would we use it in our business to make any changes, if at all? Yeah. Okay. So again, the highest dealer in the group is ten point nine percent of their portfolio is has been with them over twenty four months. Okay. So again, we've studied the twenty four month mark since day one. Yeah. And so this accounts for whatever charge offs, because we've talked to different lenders and people that really And they have people that really understand the numbers and the metrics and all of that. And they all kind of agree that if you can get an account that most of the accounts that are just bad accounts are going to drop off around the eighteen month mark. Inside of that. Inside of that. Twelve, thirteen months. So when you're getting into your your by eighteen, twenty four months, these are people I mean, they've they've been paying well and and a lot of the just the bad common that And we know the bad deals have already fallen off. Yeah, but this is a, this is an ongoing portfolio. So this portfolio is also going to have contracts that they originated just in July. So we don't know if it's a good account yet, a bad account. We don't know. It's a mix. It's like everybody, everybody's portfolios. Once they're established, they've got seasoning. Some is seasoned, some is fresh, but I think what we're focused on here is, is it inside of twenty-four months or beyond twenty-four months? And what we're saying here is that the dealer with the best numbers has. Has ninety was that ninety or ninety one percent of their portfolio is less than twenty is inside of twenty four months. So let's let's think about why this becomes relevant. And so let me kind of share some of the pieces of why I think this is important. When. let's just talk about taxes first. Okay. From a, that was one of the things that I was just like going off on a tangent around. Yeah. Yeah. So, so the question becomes if we're going to structure a deal and by the way, I didn't bring it today, but you know, we have the average term of our dealers in a VA group and we can, you can see it out there with an idea of what their numbers are, but I would buy your parent numbers. I've come up obviously post COVID cost cars, up prices went up term of loan went up right payments went up for some too but but we're seeing generally terms up but it begs the question let's say I'm a dealer doing a thirty six month lease term or a thirty six month note okay It begs the question is if now that if I know this and I can see this about my own data and I can say, well, gosh, if I'm only going to have ten percent of my notes get past twenty four months, then I really need to look at what can I compress into that? And keep in mind, we're still we're still operating some other assumptions to think about here. is we're still operating kind of what I call inside the box. When it comes to structuring a deal with a consumer, we got a certain cost of car, cost of car vary. People say I can't buy, you know, a certain cost of car, but we have dealers have a variety of cost of car out there still. So so you've got to You're going to have a certain cost of car. You're going to operate within that box. You're going to need a certain amount of markup. You need some profit in your business. You're going to have that. You have a customer who has a fixed down payment. I mean, obviously, you look at the average across everybody, but your customers only got whatever down payment they've got. Their income only supports a certain amount of payment. So now that's often what's pushing us out to thirty-six. Some of our dealers have forty to one month term. So it just starts to beg the question, when I run my price up, my markup, my cost of cars here, when I run my selling price up, then I push my term out because my customer's income or the payment's going to limit me a little bit. So I'll push the term out. But it begs the question, if I know for sure, this is, so far we're just still in facts, just these numbers on the screen are factual, right? And actual numbers from dealers. The next fact is sales tax in virtually every state is selling price minus trade. Okay. So selling price is going to be a factor in driving sales tax. Okay. Yes. Selling price is going to be a factor in income tax. Okay. or markup. And one of the problems we have in buy here, pay here, it's not a new problem. We get taxed on the money that we mark up, that gross profit, regardless of how much we collect, even though we're negative on cash when we deliver, we are taxed on that profit. So they call it, that's why they call it phantom profit. But the IRS doesn't care. no they're taxing on that and this is why you start to get into related finance companies some of these dealers that we're looking at here even if they're buyer payer they have related finance companies so it's not that they're not managing or having strategies around that extra income but it begs the question is how much of the income that we're putting on the books how much of the profit i should say can can we actually expect to put in the bank That it's yeah. So it's interesting when you talk to dealers and they're like, I've got a, you know, five million dollar portfolio. That's great. That sounds really awesome. That sounds like, you know, I'm successful. That's it's like, oh, I the person who's got a million dollars is like, I want to be there, too. The question in that is how much of it are you collecting? Yeah. And yeah. And then when you do collect it, how much is spendable profit? You would cover that in a different podcast. Because you can have a five million dollar portfolio, but if you're only collecting two thirds of that. because you charge off and then really how big is your portfolio? I mean, it's, you can say on paper it's this, but it's like based on strung together data, it's like, this is where I'm at. And I know every dealer out there wants to collect five million dollars on their five million dollar portfolio. And our numbers say they won't. So they know they won't. That's true. But yeah, but they so a couple of the facts for that. This information, everything they see on the slide today is based on six month history with a dealer. So we're not dealing with amortizations here. So this is not a customer buys and so their principal and interest split is here. And at least your pay here, that's the same, principal and interest split across the thing. But in a simple interest deal, new contract would have high amount of interest to collect early. And so on. So that's the amortization. We're not dealing in amortizations here. We're dealing with the actual rate at which the dealer collects principal to the numbers that I'm about to give you. Okay. Because this basically says irrespective of what rate the dealer collects and whether your amortization or whatever, this number, these numbers on the screen are, that's just what's in your portfolio today. At the time we ran the report, This is what's in your portfolio. And these portfolios are in the millions. Okay. Most are in the three to eleven million range. OK, so yeah, so the five was probably a good number. It's a good number. It's typical is what we see. But I think the thing that I would like to emphasize here, let me give a couple other numbers. So this is this is probably next week's conversation. Next week, we'll probably go to the whiteboard and draw some of what I'm going to try to describe here today, because I think you start to get in the weeds a little bit. And this becomes for people who are visual learners like I am, it's going to be helped to see it kind of drawn out. Because we work off of six month history, we go in and say, this is what we're actually collecting based on our history. This is the percentage of the portfolio that's outstanding, and it changes over time. Each month we capture, okay, what did we collect last month? as a percentage of where the portfolio started in principle. So you're looking at three key drivers there. How much principle did we collect as a percentage of the opening amount of principle available to collect in the portfolio? Total outstanding. How much principle did we charge off as a percentage of where we started? And the last one would be interest. How much interest did we collect? So those first two are going to drive the principle balance. And the last one is other money. So let's talk about interest for a minute. And this is where I'm saying this is going to be a lead into next week's conversation. I think I'm going to bring back a conversation we touched on once before, but I think this is super relevant in the context of what we're talking about here. Interest that we charge to a customer is there for what? Why do we charge any interest at all? Why not just charge them a markup, keep the car more affordable, make it easier for them to pay off? Why do we charge interest? Well, we charge interest because there's risk and that risk is meant to offset our anticipated losses. There's a reason we don't charge our poor credit customers, six percent interest is because we anticipate higher losses We charge a higher interest rate as a result. But if you hold on the idea for just a moment, that interest is really there to address and offset anticipated future losses. So that's your net charge off. Which is, this is one of the things when we talk to the CFPB. Thank you. I don't have the little thing. Yeah. um or other governmental agencies it's like this is why we have high interest yeah is because there are so many defaults on the loans and so this is because if we didn't then we would go under and there wouldn't be an option for for this segment of people that need cars and we track that we look at interest but i just i want to kind of set that aside for a minute if you so the thing i know if you remember we did this conversation before if if as a dealer if i collected my interest yeah and i just reserved it i just put it aside separate bank account just separate um accounting um you know account then if i could just set it aside granted it's cash yes it it's cash that comes into your operation and yes you use it to replace cars next month it's part of what you collect from your customer get it but i'm saying from a profitability standpoint if we were to just set aside the interest that we collect and not um and not apply it in the math that i'm going to apply And if I just looked at the principle that we're collecting. So the numbers I'm about to give you are actual numbers from I was able to pull together of these people that are on the slide. Dealer number four is is collecting as a percentage of their cash and deal. Okay. So cash and deal would be the risk and the contract. Okay. So we're using an average here of all contracts, um, in the last six months again. So we take, and so what I'm, what I'm doing is I'm saying at the rate that we currently collect principal. So, so the rate let's look at dealer number four on the far side over there, the rate at which that dealer currently collects principal though, over the last six months of their history, in twenty four months time if they applied that principle to the risk in twenty four months they would have only collected seventy six percent of that risk they would still have cash exposed on that contract at the end of twenty four months does that make sense am i explaining it well it does i see it it does but i'm i'm where i'm where you're getting the seventy six because i see eighteen point eight oh yeah no i something i just pulled together at the last minute because it kind of is meant to to show the direction that i'm going for future conversation because what i'm really starting to ask is if how quickly do we get into profit is really what i'm what i'm driving at and we've we've talked about this in the past what you're saying is based on just the principle collected um at Twenty four months. They still have open risk. They still have risk on the road. That's kind of a dangerous place to be, isn't it? Well, you'd have to ask. I mean, this is the part that I think every dealer's model is going to be different. I mean, they still have ten percent risk. This is where I would like to ask fellow dealers. And this is where I think this, our conversation is going to be going. Certainly this month on the podcast, this will be going on for, you know, this will be months and years. And now that we have DW in the picture with LendRisk, we'll be able to start analyzing this even more closely to help dealers make decisions. their own decisions. Like I'm not trying to tell people everybody has to do business, the business model one way or the business model two way. People's objectives are different. Their needs, their strategies, their own strategies will vary. I get that. I think what we're trying to do here is give enough information in front of folks so they can make a judgment that does serve their own interests when they're trying to get out of their business. But I think this is, so let me finish the other numbers. This dealer will still have, and to set another way, this dealer will still have about twenty-four percent of their original risk still exposed, still uncollected at the end of twenty-four months. Okay. Yeah. If I'm applying principle only. There's so many factors that come into this. That was part of where I was like, because if you've got a high interest rate, that means less of the payment is going towards principal. If you have a low interest rate, then you have more that's going towards principal. The down payment makes up all the things. so you know i think the thing that i would so back let's where we started we started with sales tax and income tax right so let's talk about income tax with that dealer for a minute yes this dealer has a related finance company so it's it's less of a factor still still there because we're we still have expenses associated with running our rc and whatever else but that particular dealer Let's break it down in year one, year two, year three. So this dealer is at the two-year mark. We're stepping into year three. This dealer paid income tax in year one based on the markup of that car. And going into year three, they've yet to collect any of that profit if they're applying principle only. And see, that's something that I see dealers... we'll look at the full amount that they bring in as like, it's just, it just, it depends on whether or not you're looking at numbers really clean or you're looking at numbers in aggregate too. So this is about principle, but then they're like, well, I collected the car was six thousand dollars and I've already collected eight. So I'm good. Yeah. It's like, yeah. Aria, you know, that's like the question. And so there are some that's like, yeah, I feel good about that because I've collected two thousand dollars more than what I paid for the car. Yeah. OK. you're still paying taxes on that eight thousand dollars if you know even if you charged it off tomorrow and you still owe fourteen thousand dollars on it um you pay taxes on that full amount yeah so and there's you're right that's one element and there's a whole lot of elements like that we could chase after because i think they're they're all they all factor in here But I would say to just try to keep it narrow and simple and kind of in the real myself. No, it's okay. I appreciate the thought. I really do. I think it's important to plant that seed for dealers and think and start to separate because when we do think about profitability, what I'm saying is Yeah, cash is king. Yeah, we got to collect cash. But if you're if you're collecting cash, collecting cash and replacing cars and selling repos and you're just churning your cash, at some point you have to ask, how much of this cash do I get to actually spend as profit? How much can I use to buy myself a new lawnmower? Or are you just doing this to keep the machine moving? Because if that's the case, then why do you need a big machine? Well, and if it's whether it's a large machine or a small machine, if you can't see the rate at which it's generating money and the rate at which it's generating profit in particular, which is what I'm trying to get to here today is, is we really need to ask ourselves. how quickly do we really collect our profit, right? Because initially, and this was something that in a separate podcast, we talked about, this is my own methodology. I said, when I start collecting money, I want to apply the principle that I collect from the customer to the risk first. I want to put that aside and recover my risk. And then on a note, before you think about interest, the next would be profit. But I have to first recover my risk from the customer, right? Or I don't have any profit. I can, yeah, I got profit on paper. Yeah, CPA is going to run my profit loss report and it shows I got profit. But with this customer that we're referring to, based on my actual rate of collecting yeah then i i'm going to have a period of time that i'm going to recover my risk and and most of us calculate my original twenty groups i don't know how they calculate these days we still calculate principal and interest applied to when we look at how many months to break out we're bringing the interest in but if you take that interest out and you just say principal only how long does it take me to collect my profit? So that's the point. I didn't finish these other two dealers. Dealer one is the lowest percentage. They still have twenty four percent of their cap. Their cash and deal is uncollected at twenty four months. OK, the next dealer is is right at one hundred percent. They've collected. That's actually ninety nine point three is where they came in. They across twenty four months Have collected. Have collected. Ninety nine percent of their risk. OK, so they're right out there. So now now at twenty four months, they get to go into profit would be another way to think about that. Again, principle only. We're over beating that. But how much more of the portfolio do you have? This dealer three has in this case, ten point two percent of their dollars. Now they have more accounts. They have twenty four accounts. But that's that's a certain amount of cash flow there. But so, you know, you can start to say, well, what about the customer probably wants to trade their car in, you know, or they're going to lose interest in the car or somebody else is going to offer them a better deal or whatever. They're going to get their tax refund, you know, and it's to your mark or whatever. So there's a lot of things to consider here. And I think this information, putting this in front of dealers allows them to, as they consider all those things, they would look at this and look at their own portfolio and say, I don't know if I should be banking on thirty six months when very little of my portfolio is getting there. And how many dealers out there are have accounts, contracts that extend beyond thirty six months? Yeah. And so, you know, it's and it's to keep. recognize because it cost a car and all of the things it's to keep the payment where a customer um can afford it right um because and I I don't think that's changed much since cold but it's around that four hundred dollar Mark it's just right around there so part of where I when we were talking about it earlier was I was I the way my brain works I was like okay when you factor in taxes And you factor in how long a typical contract will actually stay on the books. Um, and you factor in like, all right, so my business model is, is that at month, we're starting to talk about trading in. And by the time we get to, uh, the it's like, we're, we're, we're pressing the, we keep it the same payment, all of that. I, um, If you understand how long a contract lasts on your books, and I understand that charge offs are like tax offset. I was like, why are we charging max rates? Because you're paying so much money on the front on money that even with interest, you're probably it's just yeah, you're probably really not covering the tax liability and the car liability when you're dealing with customers that the ones that are defaulting in twelve months. So I just and I'm not a dealer. This is an outside person who just is looking at this from our systems and where the money is going that I don't understand why we charge thirty percent and get taxed the percentage of the interest rate. It's the cost. It's what you are. This car is markup that why we're marking the cars up so high because then we're having to pay the taxes and then everything we're collecting really there's we see that that by the time you finish all that is like you lost money. Why do we do that? One of the other things this will allow us to flesh out, it will help dealers decide, how should I balance my markup versus my APR? Well, we haven't said it here, but I think people know that you're not going to pay income on interest that you collect from the customer until it's in your pocket. So that whole markup thing we're talking about is only the gross profit that we put on the books. We buy a car for X and we sell it for Y. And the difference between those, that gross profit is income. Yeah. Granted, we're only taxed on our net income. So we take expenses out of there. But the more gross profit we have, the more profit. interest or I'm sorry, the more income tax theoretically we've been paying. So again, this is why people have strategies. But I think what this allows us to do when we start to examine this and we've been examining it, but I think this will let dealers look at this information and decide for themselves And they can look at these others. By the way, I didn't give the last number, the dealer number two. Who's a regular listener? If you're listening, dealer number two, you know who you are. You have the best collection rate. You show to have collected one hundred and fourteen percent of your risk in twenty four months. So that means that fourteen percent was profit. Yeah, I think you could say that it's like you're basically collected out your risk. And now that other fourteen percent, you could say no risk on the road at all. And you start to get into profit at twenty four months and you still have. And by this example, you have eight point eight percent of your portfolio principal to collect still out there. So, you know, we'll talk about some of these other things. This doesn't even start to address things like. the servicing costs, like you look at your interest, again, principal interest split on lease stays the same. It's a straight line thing across the whole thing. But for most buy here, pay here dealers, simple interest puts most of the interest earnings up front and then it starts to trail off. So that's something I'll map out in future sessions. But the idea for me is that At some point, your cost of servicing this note, what you're collecting on the contract at twenty four months and beyond is pretty low. What you're collecting in interest is pretty low. And so we have to ask ourselves, do we want to consider trading this customer? This is where our conversation ended up in one of our meetings last month. Do we want to have a strategy around trading a customer at a certain interval based on what we're learning here. Right. And there's like, you know, we've, we've talked about that and lots of different applications, but it's just one that just keeps coming to mind for me is it's not a customer you have to reacquire. They're already in your ecosystem. Keep them happy, keep them paying, get them in a new car. And you, cause we all know how much is being spent on marketing to be able to, to, to not necessarily to make a, I mean, you can grow your portfolio, but just to maintain a portfolio and what that, and it's like, that's, that's easy money. That's, I think it's no secret. People listen, but know that I'm an advocate for that. I'm a big believer for trading a customer on a certain level. I want to keep them happy. I want to refresh them on miles. In this case, I get to refresh them on the contract and interest and so on. And that was actually part of a conversation that we're having earlier about the danger of having high repo rates, especially if you live in a smaller community, because you're going to turn through all, you know, all these people and they're either, yeah, that's like, why not keep people on track and happy? Figure out what that golden ticket is for your community. How do you keep people on track and happy? so that you can turn your community into, we love this place. We are always gonna get our car here. They always take good care of us and they make their payments. But we've had this conversation around, you have one dealership that has this kind of charge off and you have another dealership that has the same kind of charge off, but one's in a small community and one's in a big community, go. It's like, that's a harder thing to keep up. good yeah i think that's a relevant thing i think we'll continue to talk about this i i appreciate folks being patient with us as we kind of you know we're extrapolating you know big information off a small pool here but i think what you'll see is that we we're having more information come in now because we've changed the way that we collect data from our members and so you'll see more and more of this kind of data available uh we just kind of grab twenty five data points right now and that helps us build a pretty comprehensive report for them each month, but now we're starting to capture more kind of full data files. And so I think we'll be able to expand what we share with our members. Notice that this is two weeks in a row. we kind of fell out of rhythm and it's just like, there's been so much on our plates that it just, so thank you for your patience. Thank you for taking the time to listen and, and you know, we'd love to hear from you. If there's anything that we can do, please don't hesitate to reach out. And again, check us out on YouTube on this episode, if you want to be able to see the actual thing. Don't forget we're inside of two months to the dealer forum. So get your tickets. All right, everybody. Thanks again so much for joining and we will see you next week.
