Hey question: Since used vehicle prices have improved a lot from their past lows several months back, I'm trying to figure how much of a near term impact this will have on LKQ. Theoretically as used vehicle prices improve causing the ACV (actual cash value) of vehicles in accidents to improve the percent of vehicles repaired versus totaled should increase which should ultimately improve LKQ’s revenues but also increase their COGS as the cost of procuring salvaged parts also increases. Any idea of which impact is greater i.e. the volume increase or the cost increase? Also any idea how much changes in ACV actually effect the percent of vehicles totaled versus repaired?
Thanks