A number of different industries, including robotics. Company has about 242 fully diluted shares once you account for converts, and a preferred in some warrants. It's about a 9.5 billion equity cap, great balance sheet, about 8.2 billion total enterprise value. So Ryan's going to walk us through some slides, and we will take it from there. Ryan, welcome. Thank you. Thanks. Good morning. Thanks, Brian, again, for having me. I think this is my 6th year coming here, and I guess the automotive supply chain rubbed off on us enough that, you know, I think we're making our way to a Tier 1 and Tier 2. We're going to be, you know, selling into the automotive supply chain here. Our guidance has been, you know, Q4. Yeah, we're doing a lot, but no, we really appreciate you having us here and congratulations on 50 years. I will jump into some slides here. If they will pop up. There we go. So typical, say, Harbor, I'll refer to forward-looking statements, non-GAAP measures. We also announced earnings on Thursday, so I'm rewinding my brain to Q2. And so we will, you know, stick purely to general comments and nothing on the quarter here. Sorry, this is a little bit delayed. Nope. Okay, so for those of you that don't know MP Materials, as Brian mentioned, we are the only vertically integrated player in the rare earth magnetic space. Certainly in the Western world, and really frankly, globally. You know, the business started as Brian mentioned with Mountain Pass Rare Earth Mining and Processing Facility, which is about 45 minutes from here. It's probably the world's most conveniently located large-scale mining facility. Right off of I-15. But, you know, Mountain Pass has always really been the heart and soul and the base of the rare earth industry. Obviously, the use cases of rare earths over time have changed, and certainly the visibility of the industry has changed as we've seen over the course of the last several years. And certainly, you know, particularly with the export restrictions, we've seen coming out of China since early 2025. I think the importance of our mission has become clearer than ever to the investing public, to the general public, to, you know, to certainly to our policymakers. And the decision-makers in the U.S. government. I think we have been very clear about the criticality of this industry and what it represents, not just for automotive, but for defense, industrial, aerospace, et cetera. And so, you know, we are proud of the progress that we've made over the last, you know, many, many years. And we have a lot of very exciting, you know, growth ahead of us. You know, when you look at the rare earth magnetic space, you know, our view is if we're going to scale this industry the way that's necessary outside of the Chinese sphere of influence, which we're context, is nearly 90% of supply of rare earth magnets today. And those magnets find their way into so many different parts of the vehicle where you guys are very familiar, you know, power steering, power locks, you know, window actuators, also clearly the traction motors and electric vehicles, the traction motors and hybrids. And so a critical piece of the automotive supply chain right now, you know, automotive is a significant proportion of the business. And there are obviously some many other exciting growth cases over time that will continue to build on that momentum. You know, namely, we see these days automotive manufacturers in a lot of ways becoming robotics manufacturers, and that's certainly an area of very significant growth for the business. You know, we've built this business very methodically, as Brian mentioned, very strong balance sheet, focused on contracted cash flows. And building this business thoughtfully, we started with, you know, mining and producing rare earth mineral concentrate that was refined externally. We've built one of the world's largest refining operations at Mountain Pass, co-located with the mine to produce the separated rare earth oxides that are the building block of NDPR magnets. And we've built the world's only fully integrated magnet manufacturing facility that goes from the rare earth oxides that come out of Mountain Pass through all of the various process steps to get to a finished product that can find its way into traction motors and the like. This gives you a sense of our assets. You know, the mine for context has been in production in some way, shape, or form since the '50s. You know, this is, as I mentioned, one of the world's richest rare earth ore bodies and provides a tremendous set of benefits for us as a business that needs to compete with, you know, within a global marketplace. Having the mining and refining and separation facilities co-located and designed to maximize the value of the ore that's found in the ground is another reason why we can be so efficient from a cost structure perspective, which we'll get into on the separated oxide business. On the magnetic side, you know, we decided to enter the magnet business in 2021, really out of conversations with automotive customers, where they were trying to secure their supply chains coming out of COVID. And realizing that many of the critical pieces of their supply chains were heavily reliant on a single point of failure. And so for us, we realized that restoring the rare earth supply chain did not just mean becoming, you know, one of the world's largest refiners of these products, but actually making the end products that are usable in what's manufactured in the United States. And so our first facility, which we'll get into, is called Independence. That facility was anchored by a partnership with General Motors, who is our foundational customer of that facility. The second customer where we will begin production of magnets in the middle of next year is Apple. And we'll talk a bit about a very exciting public-private partnership that we entered into with the Department of War in early 2025, mid-2025, to really scale this business to become fully vertically integrated. I think an important element of this and understanding the supply chain is there are a lot of process steps. There are a lot of products. And on the bottom here, you can see exactly the building blocks that go into delivering a finished product to one of our end customers. And we've been able to build the scale in each of those process steps and the technical capability to deliver a fully vertically integrated solution. There's a lot of discussion in the marketplace. There's a lot of capital formation in this space given how everyone has realized the criticality. We have been at this methodically, you know, building each capability to be able to deliver a secure supply chain for our customers and for the country writ large. So talking about the partnership with the Department of War, you know, seeing what happened in early 2025 with export restrictions coming out of the Chinese marketplace, I think it became patently clear to the government and to customers broadly the risk that was presented by the dominance of the Chinese in this space. You know, we had been focused on this for many, many years. And approached this agreement with the Department of War with a lens towards protecting the business from the mercantilist policies of the Chinese that had been employed in this space for so many decades to restrict growth. And then focusing on what do we need to go faster to really build a scaled capability to serve the U.S. and Western supply chains. And so after a lot of negotiation and what we came up with is, I think, one of the more creative solutions of bringing the Department of War in as an anchor investor in the business. And also agreeing to a price floor on our core commodity of NDPR, where we are now insulated from the predatory pricing policies that had been in place for many, many years, you know, selling our product on the global market. And then importantly, what we announced was the building of what we're calling 10X facility. Our initial capacity for magnets with our foundational customer of General Motors at our first facility was 1,000 tons. The goal was, how do we see how quickly we can bring this to 10,000 tons of capacity? Which we believe will address a very significant portion of U.S. needs. And so what we came up with was a foundation to expand the independence facility to 3,000 tons of finished magnet capacity. And announced a new facility where the Department of War is our business partner and the off-taker of 100% of the product coming out of the 10X facility, which will ultimately be 7,000 tons of capacity. So the 7 and the 3 from Independence is the 10. The way this is structured is really a method for us to have the confidence to invest as quickly as we are. And you probably see a picture here in a moment of how much progress we've made. But the goal is to set up a structure where we have an off-taker of last resort, let's say, in ensuring that we have a minimum guaranteed EBITDA coming out of that facility to justify the investment. But also set up a structure where both sides are incentivized for us to go out and commercially syndicate those volumes to the automotive space, to the aerospace segment, to the defense industrial base, and the U.S. industrial base writ large. I think I've covered quite a few of these, but obviously we're very proud of the partnerships that we've brought to bear over the last several years and focused on executing for them, with our first two customers in the magnetic segment of General Motors and Apple. You know, we are a significant source of supply to the ex-China market for NDPR oxide right now. So we are providing NDPR oxide to other magnet makers, namely the Japanese industry, you know, who have been sort of that 10% slice of the market that survived over the last several decades in providing an alternative to China. And then, you know, one of the other growth areas that we've seen with some of the export restrictions is in heavier earths. These sometimes find their way in very, very small doses into magnets, but they're also an unbelievable amount of other use cases lasers, optics, ceramics, et cetera. And so we recently announced a large off-take of gadolinium oxide, which we will produce and separate at mountain pass to a leading U.S. aerospace manufacturer. And so another area of growth potential within the materials segment of the business. And so to give context on the market, you know, we talked a little bit about this, but you know, automotive is one of many potential use cases for rare earth permanent magnets and rare earths writ large. We are seeing obviously a tremendous amount of growth in the robotics and automation space. And as we see the era of AI and the physical manifestation of AI, you know, the build-out that we're seeing all over the United States and the Western world of data centers and things of the sort, you know, use cases in energy use cases in hard disk drives, which are a huge portion of this build-out of data centers, you know, these are all areas that rely on secure supply chains of rare earth permanent magnetics. Going to the next slide here. I think what often is underappreciated in this sector, particularly given all the noise out in the market, is our view is NDPR, our core commodity is truly the binding constraint for growth outside of China. If you look at the market today, with the ex-China magnet market being about 27,000 tons, and you know, in the context of a 250,000-ton market, the NDPR oxide produced outside of China today is effectively sized to supply that market. When you look at the announced magnet capacity that many of you, I'm sure, have seen, and then the potential growth on top of that that would be required to supply the growth and all of these industries that we've talked about, the scale of investment that's required to bring NDPR oxide to market to supply these magnet manufacturing facilities is astronomical. And so, you know, what that means is one of two things. Either our fully vertically integrated business model is, you know, exceedingly more valuable, given we every magnet that we sell, we can show our customers exactly where their product, you know, the upstream product is coming from. You know, or prices in NDPR oxide are going to have to be many multiples of where they are today in both cases, you know, it's incredibly bullish for our business. Given the demand profile that we see and where we see the bottlenecks in the industry. And so I'll breeze through this since we covered most of it, but you know, as I mentioned, mountain pass has a really storied history. An absolutely tremendous asset with, you know, one of the best sets of economics you can find in the rare earth space. You know, today we produce north of 50,000 tons of rare earth oxide in concentrate and we are the second largest producer of this product globally. And this is from a standstill when we acquired the site at a bankruptcy in 2017. The refining facility launched in December of 2023, and if you look at our progress in ramping volumes of refined product, it's basically a straight line at roughly a 20-plus percent CAGR since then. Our ultimate target is to get to 6,000 tons of NDPR oxide production out of this facility. We are well on our way there. And as we get there, you know, the economies of scale from higher throughput out of this facility continue to bring down the unit economics and bring down the unit costs and improve the unit economics of the business, which is a big focus of the management team over the next several quarters. I mentioned heavy rare earths. You know, we have designed and are in the process of commissioning one of the Western world's only dedicated refining facilities for heavy rare earths. It's designed not just to take the feedstock that comes off of our mining operations, but also to take third-party feedstocks globally and given the structure of the market, we really have set this business up to be the refiner of choice for feedstocks in the Western world, you know, powering some of the industries that we just talked about. This gives you a sense of, you know, our progress on production both from an upstream and midstream perspective. I think importantly, you know, we operate a facility in the state of California, you know, there you don't hear a ton of mining operations in California. That's not the thing that sort of comes to mind first. But I think the beauty of what we've built is this is one of the world's cleanest rare earth mining operations. I think typically mining is associated with, you know, wet tailings and tailings dams and you hear of these sorts of incidents from those. We produce completely dry stacked tailings. You effectively mine the material, take out of it what you need, and, you know, put the rest back where you found it. And so, you know, that is unique to us and the rare earth space and certainly an element of our operation that we're extremely proud of. Quickly on the magnetic space, you know, a lot of folks starting a brand new business don't necessarily go into this thinking, oh, I can't wait to be an automotive supplier. You know, the quality standards are incredibly rigorous. You know, oftentimes qualification, et cetera, is incredibly difficult. I think you see here in this middle chart, one of the reasons we were so focused on entering the automotive space first is if we can produce high-quality magnets at the rigor and quality that's required of the automotive space, we can do all the rest. And so, you know, we've demonstrated our capability to do exactly that from a standstill. You know, we hired our first employee in the magnetics business in 2021, who still leads the business to this day. And obviously with the investment we've put into this, you know, we believe when you fast forward to when we bring our 10x facility online, we will be on the absolute cutting edge of magnet technology globally. With that, I'll come sit with you and we can. Yeah, please. That was terrific. I'm sure we have some questions from the audience, but let's start here. I just, I think that shares which are down this year have probably traded more on the idea of either geopolitical instability, and also a decline in the auto market. But the reality is you have so many different verticals that are going your way. Let's just assume as we've seen that the EV market takes longer to develop. Sure. What does that mean for the magnet facility? How are you able to adjust to that? Sure. Yeah, so we've, you know, we went into this eyes wide open, obviously. I think there was a tremendous amount of excitement, you know, in 2021, 2022 on, you know, the growth trajectory of electric vehicles. I have a lot of thoughts on this. I mean, first of all, if you focus on automotive purely, the growth in hybrid electrics, you know, plug-in or otherwise, oftentimes when you look at it from a magnet perspective, the growth of those use cases has really picked up the slack. And oftentimes what you see, particularly in hybrid applications, is given the space constraints that are present, there is no alternative other than a rare earth permanent magnet motor to be able to power those use cases. And so you know, I think there's a lot of questions about, you know, is automotive no longer a growth story? It absolutely is a growth story still. And so, you know, we're tremendously excited about what we see from, you know, from the automotive space. I think what we've also seen is, you know, if you look at the market, it's roughly a quarter is general automotive, you know, a quarter is consumer electronics, you know, probably another 15 or so percent is EV traction motors. And then you've got, you know, sort of cats and dogs that are single digit percentages defense, robotics, all of those things. If you look at the growth trajectory that is expected in the robotics space, it's 2% of the market now. That is expected to grow at, you know, 30 plus percent over the next decade eventually representing a quarter of the market. And so, you know, that use case alone, and that does not take into account, you know, hard disk drives and all these other, you know, use cases, you look at, you know, EV toll and drones and look at what's happening in the conflict in Ukraine. You know, thousands upon thousands of drones, single-use drones are lost in that conflict every single day. And you see the direction of, you know, Western militaries looking at, you know, there might be a drone for every U.S. citizen at some point. And so all of these markets you just think about, you know, converting energy into motion. Almost all of them have a rare earth permanent magnet within that application. And so I think, you know, we are more excited than ever about, you know, the potential growth in demand for the business. But we also approached it methodically as we always have. I mean, this is an owner-operator culture. You know, our CEO and COO are the co-founders of the business. Extremely large shareholders of the business. You know, Jim, our CEO, is the largest individual shareholder. You know, we're in this for the long haul. And so, you know, when we structured our agreement with General Motors, you know, we did so with an eye towards, you know, I don't know exactly what volumes are going to look like. You know, when we approached our public-private partnership with the Department of War, that also set us up to create economics within this new magnetics facility where if there are only customers, we're fine. The reality though is, you know, I deal with customers every single day. The customer conversations we see the potential demand growth over the next decade plus is unbelievable. I think, you know, we may be talking about 20x, you know, before we have any conversations about, you know, slowing the demand growth. If you're thinking about your ability to get to meet that demand growth, to have the sales actually meet the demand. Yep. What are the choke points that you as a CFO, you know, but effectively as an operator as well, need to see come through in order for you to actually achieve that? Well, I think what we're seeing is, you know, overall when we look at the magnetics business and we look at the business broadly, you know, we believe we're a supply constraint, not demand constraint, right? Ultimately what we need to do is invest operate and execute to bring all of this capacity online, thoughtfully, you know, in order to meet the demand that we're seeing. And so you know, we're well on our way with, you know, the qualification process with our first customer. You know, which is, you know, an extremely large scale contract, you know, that in and of itself is bringing to bear the manufacturing operating system that's required really to do this over and over again. Like I said, starting with automotive, you know, gives us such a tremendous advantage in bringing other players onto the platform. And I think that, you know, those emblematic of, you know, entering into our agreement with Apple, you know, also notorious for being a slightly difficult customer. You know, we have an experience that they're, you know, I think it's, it's one of those situations where when you have the geopolitical landscape look the way that it does, and you think about what we need to do to be successful, it's just execute what we've already laid out. We've laid the foundation. We have the technical capability. You know, and it's really about customers understanding the position that we're at and meeting us where we are, which is exactly, you know, what happened with General Motors. I mean, for context, when we signed that agreement and I give them a tremendous amount of credit and we wake up every day thinking about this fact and ensuring that we execute for them, we weren't even refining rare earth oxides when they signed a binding commitment to buy magnets from us. And so it takes, you know, leaders in each of these industries, you know, GM and automotive and Apple and consumer electronics, to be able to step forward and recognize that we need this capability in the Western world and that MP Materials is the one that will be able to execute on the promises and we absolutely are proving them right and will continue to do so. It sounds like everything on the MP side all the ducks are in a row. Let's be thinking about your supply chain in general. Let's talk about, you know, critical inputs risk outside of what you control. Including anything that's actually China dependent. Sure. Yeah, we talk a lot about this and certainly you know, given the geopolitical landscape, you know, we have been focused on ensuring that we have a resilient supply chain, you know, really from day one. There were things very early on in the material segment in particular where the only place you could get certain reagents, you know, was from the Chinese market. We've been focused on eliminating that aggressively over the last several years. And so we're really at the point where you know, there's nothing coming from the Chinese market that we need to execute our business. You know, you rely on three years ago that would not have been my answer, but you know, we have you know, stood up suppliers where we need to. You know, you sort of have to practice what you preach. You know, when we have customers coming to us saying, hey, you know, you know, we need this and we tell them we're going to be able to do it for you. It might not be at the Chinese price. It'll be at a Western price. You know, we practice what we preach and we've been able to do that and absorb that and still be very competitive from a cost structure perspective. And so you know, I feel very good about that. When you look at the magnetics segment, that is one of our core competitive advantages in being able to move as fast as we need to to execute on 10x. We've built an entire supply chain of magnet manufacturing capabilities, you know, centering furnaces, magnet presses, you know, slicers, grinders, you know, hydrogen decrepitation furnaces, all of these things that this is not something that you can engineer and have manufactured outside of China overnight. You know, but we've been at this since 2021. And so the vast majority of the equipment manufacturers that we used at the independence plant are the same ones we're going to, you know, for 10x. And so having that, you know, relationship that we've built over the last several years has been absolutely critical for us. Last one for me, we've talked a lot about auto. We've talked a lot about maybe the DOW partnership. Apple, not a small customer. Sure. But you have a really unique recycling partnership there as well. When you think, you know, five, ten years down the road, how large can that recycled feed be as a share of your own supply? Sure. Yeah, look, we're incredibly excited about that partnership. It was actually something that was almost five years of work behind the scenes on the recycling side with Apple before we, you know, were able to announce a deal across the recycling space and the magnetic space. But we are building a dedicated recycling facility at Mountain Pass with really two pathways. There is sort of the pure, you know, post-consumer and post-industrial where that material never is commingled with primary material. And then there's a pathway, you know, with better economies of scale where we can bring recycled feedstock into the facility leverage some of our existing assets, commingle with primary material and be able to really use that as an incremental source of feedstock to feed the refinery. What we've talked about is, you know, we're targeting 6,000 tons of NUPR production. Out of, you know, the existing refining facility from primary material, you know, I would not be surprised to see another 1,000 or 1,500 tons of NUPR oxide potential come out of the recycling side of the business. And when we sort of announced the Department of War partnership and gave long-term guidance for the business, a lot of this wasn't done yet. You know, we had not announced the Apple partnership. We had not announced the recycling business. We had not announced the heavy rare earth, you know, partnerships that we've entered into. And so you know, from my seat, I see a tremendous number of potential upside levers, you know, for the business over the next several years. And this is a very exciting one. I always appreciate the fact that you're able to make it and you are the company that kind of gives us the look into the future as much as any. So thank you very much for being here, Ryan. We've been bumping up against time. Best of luck. I think at 38 dollars, there's a lot here to really like from an investment standpoint. So thank you very much. And Martin, thank you for helping to facilitate this. Appreciate it. Thanks very much. Everybody's on New York time. No one went out last night. If you've been here for the past few years, you've gotten the chance to hear from Melinda Zabriskie, who's the head of automotive financial insights for Experian. And if you have been here, you're better for it. Melinda does a terrific job giving us a landscape of the consumer, of the auto industry, and really kind of encapsulating, I think, what we all feel sometimes when we're thinking about whether buyers are buying, what types of cars they're buying. I'm going to give Melinda the floor and let her go through her slides, but it's always an education. And so thank you very much for being here and thank you for making number 50. Awesome. Thank you. So no one went out last night, right? Everyone was like in the room by nine o'clock last night. I don't think I saw any of you at the roulette wheel last night. I certainly was there. Okay. Maybe a little bit too late. Okay. So I am going to inundate you with data. So if I see anyone starting to slip under their seats, don't worry, I won't call you out. Exactly. So I have been with Experian for, let's see, I think I'm wrapping up my 23rd year. So it's been a while. And I do a quarterly presentation on the state of the automotive finance market. Every single quarter since 2007. So if you do the math, that's a lot of quarters of playing with this data. So this is going to, I call this preliminary Q3 because the last month of the quarter is still a little partial in our data, but it's essentially what we're going to see from a Q3 standpoint. And I'm going to cover a, like I said, a lot of information here. So I'm going to hit what we're seeing from origination highlights and availability. Being inventory, vehicle availability. I am going to hit a little bit on EV just because you can't not talk about EV. And then of course, affordability. And what we're seeing in the auto finance space, how are consumers financing? What does it look like for loan amounts, payments, et cetera? It is a very different marketplace than it was, you know, even five years ago. And I mean, the average consumer who's coming into market right now, their last car purchase was pre-COVID. So very, very different between 2019, 2020, and what we're seeing today. I mean, we're talking, you know, new car payments were $500 then. And they're set in the upper $700s now. So very, very different. And then I'm going to wrap up with what we're seeing from automotive portfolio, how much is out there. And of course, I like to end on delinquency. I should start with delinquency because it's always like the negative point, but I'm going to end on delinquency. I talk about credit scores. You can see what the score ranges are there. Not going to belabor that. Just as an FYI, this is all Experian data. We get DMV registration and title data from all the states. We're one of two compilers of all this information. And of course, most people know us as a credit bureau. So we match our title reg data with what we see on our consumer credit file. And are able to just compile all of that and get a lot of great statistical data. So this is not sampled. When I talk about the industry, I'm looking at, you know, pure retail. This will not involve anything fleet. So this is purely consumer retail. The slides will be available. So I'm not sure how you guys distribute the slides, but yeah. So they are all available. So I like to start with what I call my automotive snapshot. What and how are consumers transacting? And I will warn you, my slides always have a lot going on on them, but I'll explain what we're seeing here. So again, this is Q3. It's a three-year time period. So I'm looking at 24, 25, 26. On the top, the two top or two top segments there are how consumers are transacting for new and used vehicles. So let's start there. On the upper left-hand side, we're looking at new car sales. And essentially, in Q3 of this year, and as you can see, that light blue line is leasing. Leasing has been really flat. We've been leasing around 23, 24 percent. And that's been pretty consistent for the past, you know, several years. I don't think we're ever going to get back to those 33, 34, 36 percent leasing figures that we saw, you know, 10 years ago. One, we don't need to. The manufacturers don't need to. Leasing is not an inexpensive product. You get those residuals wrong. It's not a happy picture. So leasing around 23 percent. What's been interesting this year is we're starting to see more loans come into play. When the rates went up a handful of years ago, we started to see a lot more cash. That's that dark purple at the bottom of that upper left hand. So we started to see up to about 20 percent cash, which is unusual. Normally, cash is around 15, 15, 16 percent of the market. So right now, we're around 17 percent for new car sales. So more loans coming into play. Now, on the used car side, it's kind of the exact opposite. We're really seeing record highs of cash for used cars. So part of that is because of what we see on the bottom of these charts. So bottom left is I grouped the vehicles by what I call my vehicle age groups. So about 25 percent of everything consumers purchased in Q3 were new cars. 25 percent. Most of the market's always used. When you think about on the retail side, we tend to retail about 12 and a half million new cars. I mean, you always look at SAR, SAR's around 16, 16.5, I think right now. But you take fleet, government, commercial out of that. Retail is around 12 and a half million. So most of it's used cars. What consumers transact. Now, that light blue line that says 14.4 percent, it's increasing, but those are our late model used cars. So current plus three. It's a very high demand segment. Dealers are struggling for this segment. These are typically your off-lease vehicles. So they tend to be CPO. It's your off-lease. High, high, high demand. And it's a very small part of the market. Like, I mean, I've talked to dealers who say they're buying inventory on Amazon cars. I mean, that's just so bizarre. So the segment that's growing is that little lavender line at the bottom. It's almost 44 percent. Those are nine plus year old model vehicles. Nine plus year old model vehicles. Now, it used to always be a lot of lenders would finance like current plus eight. Now they're starting to do 10. Now they're starting to explore 12 because that's what consumers are buying. And these are a lot of prime consumers. Half of the consumers that buy these older vehicles are prime. So good credit quality. But on the lower right-hand side, you can see when you get to that light lavender bar at the bottom, there's not a lot of financing on them. You know, you see a lot of cash here. So it's only financed about 15 percent of the time. So again, this is an opportunity area. That a lot of lenders are starting to expand into. Because again, it's highly competitive for the banks out there. Now, part of that light lavender or that light blue area that high demand is off-lease. So this year, we're doing better. We're picking up an extra about half a million off-lease vehicles this year. You can see we're going to hit a peak in the second quarter of '27, but a lot of EVs are going to be in that. Next year, we're going to do a little bit better. So 2027, we're going to pick up about 3.3 million off-lease vehicles. But if you think back to when leasing was, you know, 30 percent of the market, we were getting four and a half to five million zero to three year old vehicles coming in off-lease. So again, we're not going to return to that, but the off-lease inventory is going to pick up a little bit better. And again, this is just anticipated off-lease for retail. Now, the 28 figures, I only did a couple quarters there. We're going to pick up a little bit more due to the 24-month leases this year. And of course, 24, 24-month leases, a lot of those are EV. EV tends to lease around 24 months instead of that typical 36-month. Now, the other thing, of course, we look at is the age of the vehicles. So the car park is aging. That also means that the average age of the vehicles being retailed is also aging. So this is 2021 compared to 2026. So a little bit of a five-year view. Now, on the cat, and I broke it out by franchise stores independent and grand total. So that grand total will also include private party, things like that. So essentially, right now, the average age on the franchise side of cash is decreasing because again, we're, you know, inventory is kind of stabilized. We're getting a bit more availability. But when you look at financing, the average age on franchise as well as independent stores, that average age of the vehicle being financed continues to increase. Again, that's as we're getting more and more of those 9, 10, 11 plus year old vehicles being purchased. And on the far right-hand side, again, 21 compared to 25, you know, the average age of the used car being sold right now, it's 11.6 years old. Obviously, it's younger at franchise, but it's also aging. So our dealers are dealing with more and more older cars. Oh, and in case you're not aware, CEMA, Apex is going on right now at the convention hall. If you've not ever seen a CEMA conference, head over there. It's pretty remarkable what people will do to their cars. Anyone been to CEMA? Anyone can head over there? Yeah. It's a very interesting conference. We have a whole bunch of people over there right now. So average age of vehicles growing, which also, of course, means consumers are keeping their vehicles in better shape. So again, like all the aftermarket products and all of that. Doing very well. As far as where consumers are purchasing, the left-hand side, I'm looking at the split between franchise and independent stores. The independents have actually picked up a little bit of market share. Part of that is really driven by, of course, things like CarMax, Carvana, those retailers picking up a lot of steam. And a lot of that is due to the EV space. Carvana is actually the number one retailer of used EVs. In case you were not aware of that. They're also the number one financer of used EVs. When I look at who's doing the lending by the dealer types, one of the biggest shifts I've seen on the independent side is that dark blue stack at the top. And that's banks. We're seeing fewer and fewer banks financing in the independent space. The biggest growth area, which we'll see coming up, is really in that finance company space. Part of it's due to dealer captive, but it's not all dealer captive. We see a lot of growth in our finco space. And that leads me to this slide. Looking at market share. So I had somebody ask me recently, what do I have to do to become an indirect lender? And I'm like, you need to buy somebody. This is a very difficult space for lenders to get into if they're not already in indirect lending. And as we know, the majority of auto finance is indirect lending. You know, your dealer, you know, books the loan for you. Even if you're a direct, they'll flip it to indirect as soon as they can. So I took a look, you know, to take a look at the top 25 lenders. The left-hand side, top 25 lenders, for total financing. And as you can see, the top 25 dominate the market. Top 25 lenders are over 60 percent of all of auto financing. And the biggest growth is occurring in used lending. So new vehicle financing, very difficult to crack into. It's very captive dominated. But the top 25 have actually lost a little bit of market share. And again, part of that is due to growth with the finance companies. Several fincos are full spectrum. And they're increasingly picking up share. It's the used space that's consolidating a little bit more. So used lending, we have a whole bigger slew of lenders who work in this space. You get a lot of credit unions. Again, finco, et cetera. There's thousands and thousands of lenders in the market. People tend to think, you know, hey, there's only a handful. Nope. There are thousands of lenders. Used car space, we're consolidating even more. It's about 52 percent. So that's where we're getting more and more of that shift into the biggest lenders. And again, part of that is dealer captive. So when I look at the market share, this is total financing new used loan lease. You might be surprised. You might be thinking, oh, it's the captives. No, right now it's the banks. So banks have kind of returned as the largest lender. You can kind of see on the far left-hand side, way back in '21 and even earlier. The banks were the largest lenders. You know, the chip shortage hit, inventory shortages hit, and the captives kind of returned to dominant position. Mostly because running incentives to get people into the stores. And to start moving metal again. But right now, it's the banks. Now, obviously, there are bank captive relationships. You know, Chase has a lot of captive relationships. Wells picked up Audi VW. But the banks have gotten very aggressive. You know, there's one bank that has kind of pulled back. You've probably seen them in the news. They're still out there, but they've certainly pulled back. But most of the banks that I talk with, and I speak with most of the top 25 from the previous slide, they're all in growth mode. They're all looking to get more aggressive. But the one to watch here is that Lavender Line. It's kind of that only one that's really just sloping upward. And that's finance company. So these are your non-depository, you know, big fincos. And again, part of that's dealer captive. Like your AutoNation, your Driveway with Lithia. Some of the other big dealer groups are starting to explore creating dealer captives. I wouldn't be surprised in the next 12 months if we see another big one come out. They're pretty much looking to build, although they should buy. But again, finco, huge growth area. Buy here, pay here, kind of flat. Now, when you look at new car lending, so new cars, again, we retail about 12 and a half million. But we only finance around seven or eight million of them. So so much focus is put on new cars. But again, that's not most of the market. Most of the market is used cars. But when we look at new, it's the captives. This is where you see the captives, you know, kind of owning the market. But if you notice, their share is dropping. If they're not running incentives, they're not getting the deals. Bank share, it's a little bit down year over year. But again, that growth is occurring in the fincos. And the credit unions are starting to put on more business again. You notice the credit unions kind of hit that peak in 2022 when the rates went up. Credit unions were slow to raise their rates. So they aggressively put on market share. Then you notice that steep decline that the credit unions happened. A lot of that was very strategic. When they put on so much automotive business in 2022, just like all of us with investment portfolios, you want to be balanced. They got extremely overweighted in auto. I mean, we're talking like 70 percent of their book was auto. So a little overweighted. So they started to kind of balance that back out again. Mortgages starting to originate more now. So now they're starting to grow again. But it's also very regional. You get very heavy credit union business in the Northeast. Not a whole lot in the South. Very, very state-by-state, very, very regional. Now, on the used car side, it is getting so competitive. I've never seen the top three lions consolidate like they are on this chart before. So again, finance company. Look at that growth. Finco, credit union, banks are all just duking it out for market share. So we're starting to see a lot of the lenders get a little bit more creative with their dealer programs. Offering up, you know, a few more incentives for their dealers. You know, book it with me and you're going to Aruba. So we're starting to see more and more very creative dealer programs as these lenders are looking to gain more share. But again, finance companies, huge amount of growth. So a little bit about what we're seeing on the EV side. So anyone has everybody from New York. Does anyone have a car? It's a loaded question. It is a loaded question. Does anyone have an EV? All right, quite a few. I bought one last November. I missed the federal tax credits. I was at a leasing conference in New Orleans. The last two days of September, which was when I decided I wanted an EV. I don't plan very well when it comes to car purchases. It's kind of like, oh, let me go buy a pair of shoes and next thing I know, I come home with a car. So I called every I live in Colorado, Northern Colorado. I called my local Hyundai store. Yes, we have the Ioniq 5. I want to buy it because we also had a state credit. No, we can't sell it to you over the phone. You got to be here to sign the forms. I'm like, you got five days to submit these forms. I know you do. No, you got to be here. So nobody would sell me a car over the phone. Call VW stores. They would sell me a car over the phone, but they had no inventory in like the 10 states surrounding Colorado. So I didn't get mine until November. But anyway, I digress. So EV. It's definitely falling. So the right-hand side, you can see what is growing, hybrid. Hybrid growth is spectacular right now. So hybrids, almost 17 percent of all new car purchases were hybrids in Q3. It was a little bit lower in Q2, but this is what consumers are purchasing. And I believe it's purely a reaction of fuel prices. Swear to God, as I was driving to the airport yesterday, I'm at a red light and there's a gas station right next to me in the 60 seconds it took the light to change the gas prices went up 10 cents. Don't even bring me about diesel. Diesel went up even more. I mean, $6 and something for diesel. That's just crazy. But EV, we're a little bit less than 8 percent of total sales. And when you look at the EV side, what we've essentially done, and this is the figure on the upper right, is different from what you saw previously because it includes cash. So essentially, EV, we're back to the mid 7 percent of new car sales. Which is essentially what it was pre-tax credits. So those consumers who are going to buy EVs are still going to go buy EVs. You know, the credits aren't going to really make any difference. These are consumers who are purposely out there purchasing EV. Now, it's leased at a much higher rate than other car sales. If you remember the other leasing is around 23 percent. EV gets leased almost 32 percent. But last year, when you had the little, you know, loophole, leasing was huge. Most of the EVs were leased. It was 62 percent. So what we're seeing right now is EVs are about 10 percent of the lease market. Last year, they were nearly 25 percent. So think about that. One in four vehicles that were leased ased were EVs. What does that mean? Off-lease. So off-lease EVs are coming. They're hitting. They're going to hit really hard in Q3 of '27. So this year, about 12 percent of all the off-lease vehicles are EV. Next year, it's 18 percent. Now, again, the figures for '28 will shift as more of the 24-month leases are generated this year. So '28 is always a little loose. But again, when you think about when the tax credit expired, Q3, September, that's when we're going to get a whole lot of them. So I think it's a good opportunity for consumers, especially kind of that near-prime consumer, who might not be able to afford kind of a late model typical ICE vehicle. And the residual so far from everything I'm seeing on the EV front, they're not holding up as well as the other fuel types. So these are going to be vehicles that are going to be coming into market at pretty affordable price points. So I think it does open up a good opportunity for consumers to move into this space. And of course, when we look at used EVs, it's really dominated by Tesla. You know, 51 percent. They've been in the market the longest. It's the number one, number two selling vehicle is the Y and the 3. Usually, the Ioniq 4, the Ioniq 5 is usually number three. Sometimes Cybertruck gets in there. Does anyone have a Cybertruck? Oh, darn it. So does this mean I can't make fun of the Cybertruck? Okay. I must say, it is my least favorite vehicle of all time. The what? The technology. The technology is amazing. Unfortunately, I do make fun of the Cybertruck a lot. And most of my colleagues and a lot of my clients know it. So anytime they see one, they take a picture and text it to me. You have no idea how many pictures of Cybertrucks I have at this point because it's they all send them to me. I didn't have Cybertruck buyers like that. I think that that's actually part of it. So I think Roger, right, that you're kind of okay with this. I mean. It's like the love-hate relationship. Yeah. The tech is fantastic. It is fantastic tech. Sorry, I just want to check my time. Okay, perfect. Thank you. But yeah, it's not the prettiest vehicle out there. I actually saw somebody who sent me a picture of one. It was like they mocked up a Cybertruck with corrugated metal. And it was like, hey, it's a camper. It's a truck. You can do it. Yeah, it was great. Okay, I will stop making fun of the Cybertruck. Just for you. You're going to leave a review and say, oh, God, she was awful. She hates my car. Okay. But right now, used vehicle sales on the EV side, we're doing really well. Chevy, number two, because the bolts have been out for quite a while. Ford with the Mach-E, it's been out for quite a while. But so far through August, we've retailed over 422,000 used EVs. I think we'll hit probably around 520 to 540 before the year is out. But again, next year, it's going to grow even more. So really good inventory on the used EV front. Okay, affordability. So it's funny because our head of investment relations does not like me to talk about affordability. But you can't not talk about affordability. It's the elephant in the room. So I disagree with her. I'm like, okay, we got to talk about affordability. Because it is one of the key things kind of holding a lot of consumers back and shifting what and how we're buying. And also how lenders are financing. So I like to start off with this little slide that talks about household income. So this is 2021 compared to 2026. Used car registrations on the left. New car registrations on the right. Notice the dark blue. At the very top. These are households making over $200,000. Now, I kept the income buckets very, very broad. So we have $200,000, $100 to $200 is the light blue, $75 to basically $100,000 is purple. $50 to $75, and then the very bottom of each stack are households under $50,000. Notice it's shrinking for both new and used. So the higher earning households are representing more and more of the car buying population, especially on the new car front. If you notice, we're now at, you know, over 50 percent of new car buyers have household incomes over $100,000. Quite a shift from the 44 percent from five years ago. So again, new car buyers, it's not your everyday average individual who's out there buying cars. But we're also, again, seeing the same thing happen on used. So again, we're consolidating into higher and higher households. And part of this is also because of the shifts in what consumers are buying. So again, 2021 compared to 2026. Just by high-level vehicle segment. Does anyone in the room actually have a car versus an SUV? Only a couple. Who has an SUV? Most of the room. Exactly. That's what consumers want. That's what they're buying. It went from five years ago, 58 percent. Of course, also it's what manufacturers are making because that's where the consumer demand is. But now we're over 63 percent of new car buyers are buying the SUV, CUV. And I always group them together, but no one really understands the difference between the two. And then pickup trucks are also increasing. Vans, very small part of the market. But fewer and fewer manufacturers are making cars. And part of that is what's kind of driving these very high loan amounts and these price points we see. So the left-hand side are new cars in blue. Average MSRP by vehicle segment, 21 compared to 2026. Look at the growth and the increase in the average MSRP in five years across these vehicle segments. So cars, up 9.7 percent to 35,000. But no one's buying them because one, there's not a whole lot of them being made. Again, SUV, CUV, biggest growth segment in five years, it's up almost 18 percent from MSRP. Anyone with a pickup truck? Okay. You can't count the Cybertruck as a pickup truck. Well, okay, you can. There you go. Number one vehicle on the road, Ford F-150. But the trucks, they have had one of the largest increases in MSRP. Now, again, it's about 16 percent of the market, but it's also the number one, number two vehicle on the road. Now, on the used car side, the increases are a little bit less in five years, mostly because the auction values were extremely strong when we had no new cars. So everyone went and bought used. And the auction values skyrocketed. This was when consumers could trade in their car and make money on it, which that just never happened. Auction values are still really strong. But still, we have some of the bigger increases occurring in the pickup trucks. Now, to call your attention, the far left-hand side 2021 average new, far right-hand side average used value five years later. So if you're trading in your car, that's kind of giving you a little bit of insight on the residuals. So cars, only worth about half their value five years later. SUV, CUV, they held their value a little bit better. We went from 38,000 to 21. The trucks, held their value pretty well. Again, we went from 43,000 five years ago to about 28,000 now. So again, it just kind of gives you a little bit of insight into value then, value now. But this is why we're seeing some of these loan amounts increase so much is because of the big MSRP increase. Now, from a credit standpoint, this has been a very interesting year from a credit standpoint. Like I said, I've been doing these presentations since 2007. We very rarely have scores decrease. Average credit score of consumers continues to increase. Average credit quality of your average consumer continues to increase. I think the bureaus we've done a good job with credit education, all the credit cards. I mean, I'm sure you all see within when you get your credit card statement or log into your banking app, check your credit score. It's so pervasive now. I was at a fleet conference about a year, less than a year ago, and two guys from Toyota on the fleet side they were so funny. They were like, "Oh, you're with Experian?" They both whip out their cell phones, pull up the Experian app, and say, "We hold a competition to see who has the highest credit score." Like on a weekly basis. It just killed me. Mine was higher, just FYI. But credit scores are going down for car buyers. Part of it is because we are seeing some growth in subprime. I think the subprime consumer got locked out of the market for so long. They're coming back. Average credit score for new cars, it's down two points year over year. But again, five years ago it was 744. So if you look at it for a longer time period, it's still up, but the scores are decreasing. The used side has been really flat. And part of that is because, again, we've got more prime consumers moving into the used car space and buying older and older vehicles. So credit scores kind of dropping a little bit. Now, I mentioned the growth in subprime. I know a lot of lines going on. I do a lot of line charts. I used to do this as a stack bar, but I think it's a little easier to see as a line. So we've got the top of it, light blue, prime, then super prime. Notice those are both down, although historically prime is up. The car buying population is a very prime population. But what's growing right now is subprime. So near prime is up. Subprime, that lavender line, and deep subprime. Deep subprime is 500 and below. It's a very small part of the market, but it's increasing. I mean, it's soon to be doubled. But again, I've been doing this since 2007. It used to be like deep subprime was like 5 percent of car buyers. Now it's 1.3. So it's a very small percent of the market, but growth is occurring in the subprime space. Now, where growth is also occurring, is bank subprime. Now, the left-hand side takes the various lender groups that we classify. So you've got your banks, your buy here, pay here, and then there's a whole bunch of other lenders. It's like the lending population can be a hodgepodge. Captive, credit union, Finco. Now, Finco, of course, is very dispersed across the credit spectrum. You get a lot of subprime. Nobody does a whole lot of deep subprime, but that's mostly where you're going to see the deep subprime consumer is going to end up in the Finco space. They're very good at it. They know how to manage a subprime population. But the right-hand side is the year-over-year increase for each of these. Now, Finco shows increase across everything because they've just also picked up a lot of share, a lot of volume. But look at what's going on with the banks. Now, their deep subprime is a very small part of their market. They don't do a whole lot of it. It barely shows up. It's like, I think, 0.2 percent. And it's up. It looks up a lot because, again, it's a very small part of the market. But where they're really expanding is 500 to 600, which is subprime. And then near prime, which is 6 to 660. And a lot of the like two of the biggest banks I was meeting with within the past two weeks, they each said, "Yeah, we're starting to focus on the 620 to 660 population." Now, part of it is they can do that because the analytics have gotten so much better. There's more alternative data. There's better credit scoring. You can combine all this and really cherry-pick kind of a subprime consumer who won't actually impose more risk on the portfolio. So that's what we're seeing a lot of growth. So again, kind of speaking to affordability. Average new loan amounts, I mean, just a three-year increase here and again, if you were to look at 2019, average new loan amount was around 33,000. Now we're approaching 44,000. Last month, we went over 44,000. The used car side, also continuing to expand. All of up until Q2 of this year, the average used car payment had been hovering around 535, 533. We blew through that. We're now approaching, as you can see, almost 550. So 548. That's the entire used car market. Franchise, independent, as long as there's financing on it. Average new car payment, 773. Again, I can go back to my data tables from 2007, and it was like 400 and something. Somebody once asked me, "Hey, do you think $500 is going to be the cap of a new car payment?" No, we blew through that quickly. We are going to hit 800 before too long. It's going to continue to increase. And the only trigger lenders have to pull is term. So from a Q3 standpoint, on the new car side, the rates came down a little bit. Most of that was due to the incentives out there. But even a prime consumer, if it's not incentive, they're seeing rates at 6 percent. Which is why a lot of consumers are not going back to market because they're still sitting on car loans from five years ago at 2.9, 2.8. So even the prime consumer is very high rates. But the only other trigger to pull is term. So average term right now, 69 months on a new car. That's rather tremendous. 68 months on used. It used to be your average used car terms were at most 60 months. There are some lenders that won't go beyond 48, especially on the older vehicles. But they continue to increase. Year-over-year right now, our increases in these loan amounts is accelerating at higher paces than it ever has been. The top of the chart is year-over-year growth in loan amount as a percentage as well as a dollar amount. And then below that is the quarter-over-quarter increase. I tend to do things more on a year-over-year basis just due to seasonality and when the incentives run and the specials and the new cars get launched. It's always going to make things goofy on the quarter-over-quarter. And even on the use side, also larger than normal increases in our used car loan amounts, again, auction values are still holding up really well. But the loan amounts are still continuing to increase. Now, on the positive, this is new and used car distribution by loan amount. There was a lot of press around Q2 about the lack of 20,000-dollar vehicles. The lack of loan amounts that were under 20,000. There still remains only one vehicle that historically has an MSRP under 20,000. It's the Nissan Versa. The Mirage can sometimes fall under that, but based on the trim, it can get over 20,000. But on the new car side, as you can see, most of the loan amounts are between 40 and 50 thousand dollars. On the used, we still have just under a third of used loan amounts are under 20,000. So there's still there. On the new car side, that 7 percent tends to be highly incentive, very large down payments. And it tends to be a lot of RAV4s and CR-V, which are very short inventory right now. Now, on the payment side, this has always a fun slide. The media loves this slide. So $1,000 payments at the bottom of the slide. 19 percent of new car loans have payments over $1,000. 19 percent. Last quarter, it was 18 percent. So it's continuing to grow. If you go back five years ago, it was like 10 percent. Anyone want to guess what the number one vehicle with $1,000 payment on the new car side? Anyone? Anyone? Audience participation? What? F1. F150. It is not the Cybertruck. It is the F150. I'm going to just pick on you now for the rest of the entire session. Yeah. So the F150, number one vehicle, the payment over $1,000. In fact, pickup trucks average payment of a pickup is $1,001. So huge payments. And actually, about 48 percent of all F150 payments are over $1,000. So it's continuing to grow. Do we see $1,000 payments on the used car side? Yes, we do. It's also F150s. Two, three-year-old F150s. So on the franchise side, we get about 6 percent of payments over $1,000. The grand total will include private party. Now, the positive here, though, is we're still seeing it's less than a third now, but we still see payments under $400 on the used car side. Unfortunately, to get to those, it's older vehicles. I know, again, a lot of numbers on this one. But again, this might vehicle age groups. New cars, late model used up to three years old, four to eight-year-old vehicles, nine plus. So to get to that payment around $400, which used to kind of be the F and I number that consumers who go into the dealership and say, "Hey, I want I want to keep my payment around 400." Get out of that new car. Get out of the late model used. You're in a nine, ten-year-old vehicle. And look at that sharp increase that we hit from 2020 to 2022. Once prices go up, they do not come down. I think everyone started to expect, "Hey, inventory on the new car side levels out. We're not getting those dealer markups on new. Prices will go down." They did not. Same thing on used. Okay, new car inventory balance is out. We're going to reduce the auction values. Used car prices will come down. They came down a little, but not much. Once prices go up, they do not drop. And just since pre-COVID, so 2019, you can see the biggest increase are those late model vehicles. Because again, we didn't have new car sales. It really drove up the prices of those late model vehicles. And they still just continue to increase. Isn't that a happy slide? Okay. So term. Again, this is the only other trigger lenders have to pull to try to reduce the payments. So 2021 compared to 2026, new cars on the left, used car on the right. So in five years, the usually the most common term out there is 72. That's the dark purple line. And it's still almost the number one term for new cars. But we're the growth is occurring is in the longer-term loans. So that light blue for both new and used. Look at that five-year increase. Well, on the new car side, it's not increasing as much because we're shifting into 85 plus. But the growth is occurring in long-term loans. So right now, our 73 to 84-month term is almost a third of all new cars. And it's almost 31 percent of all used car sales. So again, we're talking six, seven-year terms. We're the growth is really occurring is also 85 plus. And even in that light blue, the 73 to 84, you had a lot of lenders that would do 75. So the credit unions, probably around 10, 12 years ago, started what they called 72 plus 3. Instead of just calling it 75 months, 72 plus 3. I guess it sounded cuter. So you had a lot of loans at 75 months. Unfortunately, they don't perform very well because it's usually a consumer that can't afford the payment at 72. So the lender tacks on a few extra months. Brings the payment down. They don't perform as well. But a lot of lenders got very comfortable at 75. And it used to be when you looked at the 73 to 84, it was kind of split. 75 and then 84. Now, more and more the loans are truly at 84. And we're also seeing lenders starting to explore 85. Yes, we do have 97 plus out there. There's a couple of specialty lenders that do 97 plus. If you ask me afterwards, I'll tell you who they are. But one's a very large credit union that happens to have Navy in it. I'm really bad at keeping name secrets. So yeah, Navy Federal, a lot of 97 plus. Woodside, Woodfield. But they specialize at that. And more and more lenders starting to do very long-term loans. But one thing also that the media likes to say is, "Oh, long-term loans. We're buying more nine, ten-year-old vehicles. Ergo, long-term loans on old vehicles." No, that's not the case. So this is the average age of the used cars by term groups. And again, 21 compared to 26. Essentially, the dark blue cars are getting older. We're financing older and older vehicles. But as you can clearly see, as we go up in term, the average age of the vehicle drops. So lenders are not stupid. I mean, they're not going to do a 12-year-old vehicle at 84 months. Well, you'll have some of that. But not a whole lot of it. So again, lenders very savvy. They're not going to do anything ridiculous when it comes to longer-term loans. Except for one or two. Now, on the LTV front, we're starting to see the loan-to-value increase. We send our VINs over to JD Power, append MSRP for new, clean retail on used. And the top line is the average MSRP on new cars. So over the past couple of years, it has increasing. It's nowhere like we saw in 2022 when again, we had all the dealer markups and consumers were buying vehicles 10, 15 percent over MSRP. But on the new side, we're seeing the LTV increase. It's still historically lower than it's been five, ten years ago. On the used car front, this is where the auction values are holding up very well. So the average used LTV is actually down and continues to decrease. And when you do look at the top 10 banks, or just the top 10 lenders on the used car front, their average LTVs are in the 90 percent for used cars. So LTV is holding up very well. And again, the only downside to this is the LTV for both new and used vehicles does increase by term. So again, when you start getting to the 85-month term, LTVs are around 133 percent. So for both new and used, it's very, very consistent across all of those term groups. Okay. So balances and delinquency. So average balances out there, we've got about 1.6 trillion in automotive balances on the book. It continues to increase around 2 percent year over year. Again, you kind of see a bigger increase from 2020 into 2022 when the loan amounts just increased so much. It's been a growth rate around 2 percent right now. So we hold a tremendous amount of balances. In the book out there. Now, the positive to that is most of the balances are prime. But look where the growth is occurring. Those bottom three lines. That's where the growth is occurring. Near prime, subprime, deep subprime. Balances are increasing in those areas. Part of it is because, again, we've got consumers coming back to market who kind of were locked out of the market. And now they really just had no choice. And they're coming back into the space. But part of that increase in subprime is because of what we see here. Delinquency. So the one thing I do want to call out here is the year-over-year increases have slowed down. So what we see here is 30-day delinquency on the left, 60 on the right. Now, of this, the top on each of these are units. So the number of loans and leases that are delinquent. Now, we've got around I think it's around 93, 94 million automotive trade lines between loans and leases. Most of them are loans, of course. Of those, 0.97 percent are 60 days delinquent, upper right-hand side. So 0.97. But it's only a one basis point increase. So again, it kind of we're at record highs here. But the growth rate is slowing down of the delinquency. The negative here is that 0.92 percent of that 1.6 trillion is also at 60-day default. Now, of that, around 34, 35 percent will roll to the next highest status. So they'll roll into 90. Another just under a third will stay where they are. And then surprisingly, what's increasing is the number of those 60 pluses that will actually cure back to a current status. And it's around 14 percent. Which is kind of difficult to do. I mean, think about you're making up two payments. So we're actually seeing two increases. An increase in the roll rate to the next highest status and then an increase in curing back to current. So again, a little bit of a plus and a minus. So with that, I think I have like 12 minutes for questions. We do put out three studies. They are free. If you scan the QR code, the one I do is a State of the Automotive Finance Market. If you're looking for pure vehicle registration, manufacturer, heavy metal fleet, etc., that's the report in the middle, Market Trends. And then we do a consumer trends that looks at demographics and things about car buyers. They're on our website. They're free. Feel free to grab them. They put out quarterly. With that, I think we can have time for questions. That's terrific. Thank you very much. And nobody fell under their table. No. No, absolutely not. Again, please feel free to raise your hand and ask. I'll get it started. So given all the data and I think I know where you're headed with this, you've been asked this question before, that 500 was $500 the breaking point. Is $800 the breaking point? Is $900? Where do we finally see that sort of pricey elasticity come into play? Yeah. I don't know if we ever really will. I mean, the SARs this year, I think we're seeing 16 to 16.5. Every forecast I've seen has been pretty consistent around that. I used to always say when consumers are going to get stressed, you'll see a shift in what they buy on the new car side. We'll see more cars. But we're also seeing more manufacturers come out with or starting to put more emphasis around lower priced vehicles. I've seen a lot of car commercials, I think I saw one from Toyota, really emphasizing how many under $30,000 vehicles they had, which was, I think, three. But it's interesting. Like I said, we used to see it at $500 is at the breaking point. I don't think they're really is one. But at that same time, we are seeing more consumers shift into used cars. And older used cars for that affordability standpoint. But at the same time, cars are lasting longer. The warranties are fantastic. 100,000 miles is no longer the end cap. Even a lot of prime lenders who do start buying older, who used to say, "Hey, we won't do anything over 100,000." Now they're looking at that and going, "140, 160." But I don't know if we're ever going to hit a breaking point on that. Yeah. I mean, I made the point yesterday with one of our slides. If you go back to 2012, the average MSRP was somewhere around $30,000. And now it's 50. And we're at we're actually at a higher SAR because we're coming out of the great financial crisis at the time. It's very rare you see something cost 60 percent more and the same number of vehicles get sold. So I'm wondering if there are any underlying demographic trends that are maybe that you could share or that you know of that has expanded the available buyer pool to keep the new buyers higher. So the slide I did by household income that was just a car buyers. But if you look at the US population, it's a very similar pattern. If you look at some of the charts that some of the economists put out around disposable income and household savings, they're all up. I mean, everything is increased. They're all starting to come down a little bit. We're starting to see a little bit more credit utilization. But the US population overall tends to be a pretty healthy. I know we've got a lot of economic crises and people disagree on some of those points. But again, the market is really that K-shaped economy. The market's really being driven by the higher earning households. And that's what's keeping the market moving. Which you might say positive. You might say negative. But as long as it keeps that market moving, it's also feeding the used car inventory and bringing cars back at more affordable price points for the rest of the population. I see. Could you talk a little bit about negative equity and sort of the trend you see? I mean, it seems like residual values are holding up fairly well despite longer loan terms. But maybe what the trend has been in the last 10 years. Yeah. So like I said, we look at LTV just from a VIN pattern base. And fortunately, I don't get deal jacket data. So I don't have exact visibility into the negative equity. From everything I'm hearing in the marketplace, though, is we are seeing increased levels of negative equity. I haven't really seen or heard of lenders adjusting their back ends. So they're not I mean, even when you hear lenders like loosing up and buying a little bit deeper, buying older, they're keeping their PTIs and they're keeping their back end LTVs and pretty steady. But that is a trend that I'm increasingly hearing. However, if you go back and look at some of the negative equity data and I think probably the best one I've seen is from Cox Automotive, they're able to get to some of those metrics. If you go back and compare it to 15 years ago, it's a much healthier market today than what it was 15, 15, 20 years ago. I still remember pre I think it was in 2008, automotive news had an article from a dealer who was kind of bragging about getting a consumer in a 72-month loan on an 8-year-old vehicle at like $210 percent LTV. You don't really see that these days. So I think just overall, the health condition of the market, even though we are seeing more negative equity these days, a lot of that is due to the 2022 price increases. Again, you had consumers who paid $10,000 over MSRP. Most of those that went bad have already gone bad. They're falling off the books already. Well, they already have fallen off the books. But the longer-term loans also increase the negative equity of deals coming back, usually takes an extra two, three months to break even on some of those. But overall, yes, it's increasing. But historically, I think it's still at pretty good rates. I'm going to historically, what would give you the greatest pause and concern going forward for all of these metrics when you started to see some downtrends actually hit both the new and used market? So it's interesting because I would say probably around 10 years ago, I started really starting to express concern for the subprime consumer. Because again, we're more and more new cars, SUVs, CUVs, more expensive vehicles that shift into a used car with higher price points. And your subprime consumer wants a car. They want affordability, which is why you also see a lot of Altimas. But it's the auto industry is a very stable marketplace. Even though we've seen some extremes, we've had the 2009 recession. We had the chip shortages. Auto tends to recover very, very quickly. And I would say every quarter when I put these presentations out, usually a reporter asks me, "Was there anything concerning?" And I'm like, "It's very consistent. It takes a lot to cause a big swing to the industry." I would say the two things that I continue to watch is what's happening with payments. And term. I think you get to a point the next question I now get asked is, "Okay. It used to be $500. And now it's like is 84 going to be the cap?" No? We blew through 84-month terms. I don't know how many lenders are going to really go beyond that because there's not a whole lot of it. But it really is the only other trigger to pull. So I would say the two things I continue to watch is will lender share? Because also as we increase delinquency, one of the things they had asked a lot is, "Does this mean lenders are pulling back?" And they're not. Obviously, we truest kind of really pulled back, sold off rack. But most of the lenders out there are in growth mode. And again, they're starting to explore the 600 to 660 range. So lenders despite increased delinquency, lenders are growing. The market continues to grow. Again, you got dealer groups starting dealer captives. So it's a pretty consistent and pretty healthy finance space. We as a country incented heavily the purchase of EVs for some time. Not only in the news side, but also in the used. How much concern do you have, particularly as we start to see these EVs roll off leases and EVs come into their second and third owners who no longer have that tax credit? How concerned are you about the values and the numbers that are going to be sold? So from like I said, most of the residuals I've seen do show that the EVs are not holding their value as well as some of the other fuel types. But at the same time, like I said, I think it's an opportunity for consumers to be able to move into an older vehicle or a late model vehicle who might not have been able to afford one outside of the EV space. It's interesting because I would say five, eight years ago, you would see a lot some lenders be very trepidatious about financing used EVs. And now we just don't see that. Unfortunately, it's not enough volume and there hasn't been enough transactions to really do a tremendous amount of analytics around it. I would say there's a couple of good company like Recurrent that does a lot of studies around EV batteries and such. But I think it's we need more data on them. There's just unfortunately, there's just not been enough information on them. Melinda, maybe I could follow up on that. When you look at the cost of ownership of a vehicle depreciation is by far the biggest cost, right? And when you're talking about EVs, you're talking about depreciation that's far exceeded normal depreciation. So what you've seen is a lot of people thought fleet owners were going to continue to buy EVs because the cost of ownership would be low. But fleet operators or the folks that are managing the fleets have gotten lit up because their costs are really kind of banged up. And much higher than they thought. When you think about the consumer and all these vehicle EVs coming off of lease, does the consumer think the same way that the logical fleet operator or owner would? I mean, because a lot of people have gotten killed on these EVs, right? I mean, is there if they've bought them or they've leased them and they're on the hook for the residual, residuals are 30% as opposed to 50%. I mean, it's pretty bad. I mean, how do you think that impacts sort of the psychology of those consumers that bought those EVs in the first place? I mean, I know it's nice that they're cheap in the secondary market, but that's a different kind of consumer. Yeah, it is. There's a very big disconnect between the fleet and the consumer retail side when you look at EV. Your average consumer doesn't have that same fleet knowledge of what happened. I mean, you meant like Hertz. They got tanked on their EV purchases. It's very different. But that's also when you do look at the used EV market, it's very heavy cash. And other than that, it's a loan product. It's very heavy loan. It's very heavy cash. Carvana is like the number one retailer of used EVs. So we see a lot of shift on that. I so far, I've not really seen or seen any surveys or consumer sentiment that's negative on the used EV front. So so far, I mean, it seems like it's a pretty healthy side. And you don't see any disruption in the lender side or the people that underwrote these leases that are going to take hits when they come back. It's not a big enough part of the portion of the. Supply to really. Yeah, it's not. When you look at the lease front, the hits on the residual, the EV leasing is a very small portion of those captives book overall. So I think they can kind of afford to take that hit. And then like I said, on the secondary market, it's a loan product. Just to follow that idea, I know it's tax credit driven or it seems like it's tax credit driven in terms of the new EV sale decline. But how much of it do you think might be we're starting to see the first early adopters come out from their purchase? They've been hit with their residuals. And rather than re-enter that market, they've opted to go back out to the market. Can you separate out tax credit to sort of behavior from residuals? So it's interesting because unfortunately, I can't identify what purchase would have been applicable on a tax credit. But right now, on the used EV side, we're already seeing two to three times turnover. Mostly, again, Tesla. So a lot of those consumers, they got when they dropped the prices a couple of years ago, they've already taken that hit. It's interesting, though, because when you look at loyalty rates, the EV market has the highest loyalty rate out of anything. I mean, consumers that buy EV, they come back to market, they buy another EV. It's extremely high. I want to say Tesla, I think, has like 96% loyalty rates. I mean, that's kind of crazy. And leasing goes back to leasing. But very high loyalty rates for that. So it's a popular product. Consumers that buy them just keep buying them. Melinda, thank you. We're bumping up on time, but this has been wonderful. Thank you again for being here. I hope you join us again next year as well. This is your invitation already. Yeah. Vegas during the Formula One race. What a great place to be. Yeah. If ever you've been stuck on the strip when they're closing the street to put up barricades, you know exactly what I'm talking about. Thank you very much, Linda. Melinda, and we'll see you soon. Wonderful. Thank you. Did you not come out? Not me, but. No, no. Mario not come out. Oh, he did not come out? He's not today as well? Yeah, he's not here. What did you all get into town? I got in town yesterday. Because they have all the. We had breakfast this morning. Okay. Good. I did not. Did you do that? I did not go to breakfast at Coach K. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. You all come out here? I'll introduce you guys to my question. I was just going to hop up. Yeah. Eric will run through those and then we go. Perfect. We're ready to get you going. Right back. So moving along, happy to announce or happy to introduce Standard Motor Products to kind of kick off our aftermarket discussion. So Standard Motor Products is a leading manufacturing distributor of replacement parts for the aftermarket. Product spanning engine management, temperature control, and other vehicle systems. The company has continued to expand its product capabilities, market presence, and geographical reach, most recently with the acquisition of Nissan Automotive in 2024. So excited to sit here with Eric Sills, the chairman, president, CEO, and Tony Costello, the vice president of investor relations and corporate development to discuss the company. I think they have some slides they'll flip through. Well, thanks, Eddie. Good morning, everybody. And it's great to be a part of the 50th. I think we've been here all 50 years, which is pretty cool. Yeah, very, very quick introduction because I really do want to get to the questions, which I think are more interesting. But I think it's probably helpful just to a couple of slides to set the stage to kind of create a little bit of context. Let's see if I can push the right button here. Okay. So who are we at a very high level? We're 107-year-old company. New York-based. And if you look at coming up on a $2 billion and if you look at that pie chart in the middle, it used to not have three slices in any kind of referred to that. We used to really just be a pure-play North American aftermarket company. Over the last few years, we've added a couple of legs of the stool. North American aftermarket is still two-thirds of what we do, and it's really our bread and butter. But we have added a European aftermarket segment, which I'll spend a second on. And we have a segment that we call engineered solutions, which is our original equipment business, which again, I'll talk about each of them in two sentences or less. On the right side, you see our map. And the reason we point this out is really more and more we're seeing in the aftermarket, people aren't necessarily manufacturers. They're very good at sourcing. But what that is often done is it's chased product into China. Because we've always been a basic manufacturer, we find ourselves with a supply footprint that is much more on the left side of the map. And while we do have some exposure to China, it's really, I think, created a very nice competitive advantage to us to be more North American-based, European-based, and it's really paid dividends for us over the last many years. All right. So the three different markets that we're in and the biggest piece is on the left, North American market. That actually has two different reporting segments. In it, vehicle control, which is engine management-related products, electrical safety products. That's the bigger piece. And then we have temperature control, which is largely air conditioning, but it also has other thermal management aspects to it. The middle is that acquisition that we refer to, Nissan's Automotive, looks an awful lot like Standard Motor Products, but based out of Denmark and taking care of the aftermarket there, with product categories that have a lot of overlap with what we do here. And so it's really provided tremendous synergies between the two, both top line and bottom line synergies, which happy to talk about if there are any questions related to it. And then the right side is that engineered solutions business. And here, I'm showing is what those end markets are. Because while there is a slice there called light vehicle, that is pretty deprioritized for us. We'll go after light vehicle business where we think we have a right to win. But that's a tough business, as I think you guys know. So we really pursue other and more markets, more going into commercial vehicles and farm and industrial and those that are a little more suited to our type of company. And then just last slide before we open it up, just what do we do with our cash? How do we think about capital allocation? And really, it used to mostly be about the two on the left and the two on the right. After the acquisition of Nissans, we did have to lever up to be able to do that deal. So really, over the last couple of years, our focus has been heavily about paying down that debt. We had a target to have our leverage ratio down to two times by the end of this year. We're happy to have gotten that done actually a quarter early, but we just announced our third quarter numbers last Friday. And we're actually at 1.8. So we're very pleased to have successfully been able to get our leverage down to a comfort area that allows us to focus back on the other four pillars here, which is really much more about investing in our business and returning value to you guys. So our first priority is CapEx. Investing back in the business for our future. A lot of that is on machinery and equipment as we bring more production into our facilities. And there's kind of an endless pipeline of opportunities for that. So that's our primary. Another secondary is dividends. We're proud of having a long-standing history of paying dividends, slightly increasing year over year. And it's an important part of our priorities. Then on the right side, it's really kind of a toggle. If there's M&A opportunities, that's where the cash goes. And if and that's always going to be opportunistic. If there's nothing to buy, that's when we look at share repurchases. So that's kind of the lay of the land. And with that, I'll sit back down and open it up to you, Eddie. Perfect. Great overview. Thank you for that. I guess just starting off, you did report earnings last week. And the stock reacted positively rightfully so. Can you just touch on some of the key highlights from the report? Yeah. It was we were pleased with the quarter and really the year-to-date so far. And as we think about how the different segments performed, three out of the four showed very nice improvements at the top line. The one that didn't was actually for a very good reason. That was our temperature control business. Temperature control, as you can imagine, is highly seasonal. It's largely air conditioning. And so there can often be an offset of when customers bring in the inventory to their