CarGurus, Inc.

through us and so you know all the aspects of the transaction that you just mentioned a few text title there's the transaction itself there's the other F&I products there's trade-in that you know it's all of the steps that that you can think of we would enable the dealer to do those at their inventory on our site and and we would be the you know, the, the, the group that is, uh, helping the dealer, uh, complete all of those steps on our platform seamlessly to the consumer. And so, um, you know, that is when people talk about the buy button, that that is the buy button. That's what we're working toward. And, uh, when we have that, uh, and a great example is, is, you know, trade in with car offers as the backbone, is a perfect example of how we think we're going to have a competitive edge with our digital retail offerings because we're going to give the consumer, we believe, more choice in the form of more inventory for more dealers rather than single dealer inventory. We're going to give them likely more choice of financing and other options across dealers. with that choice typically comes better pricing. And we're also going to give them the convenience and sort of optionality to complete it fully online or to go into the dealer if they do want to go into the dealer. And then a layer of trust as well with the consumer handling that we are planning to and have started to build out so they can have sort of all the benefits of selection and choice and then a single single point of trust, uh, to come to, which would be us. Um, so, uh, and, and again, you know, trade in the example I used on trade in, uh, works when you're, you know, selling it to the dealer from whom you're buying. And that has certain advantages. If it's not a seamless transaction like that, where you're, you're doing a trade in, then, uh, we do have, you know, other options and P2P and, and some cash max offer as well. So, you know, we've said it in these remarks, but we really do intend to have and believe we will have the most complete platform for both consumers and dealers to buy and sell their cars. And that may take the form of dealer to consumer, consumer to dealer, dealer to dealer. But when people think about buying or selling a car, we want them to use us.

Really helpful. Just maybe one more for Scott. Could you just remind me, you talked about car offer gross margin scaling. Just kind of remind me, you know, where we think those could go longer term and sort of what's the, I guess, the COGS component within that business, you know, versus sort of the listing business. Thank you.

Sure. We haven't said where it's going, so I can't really comment there. Within that business is on the people side, there's onboarding. service folks that we have that basically bring the dealers up to speed, give them training on the matrix and so forth. Then there's pass-through costs for inspections and delivery. Those are the major items. Thanks.