Ryan Brinkman: That’s very helpful. And then just lastly, I’d be interested to get any updated thoughts that you might have on the whole car market. I’m not sure what percentage of the Copart Blue is sort of represented by the traditional whole car market. If you have any thoughts on — because you still participate there via, I think, physical auctions, right, although you’re selling them virtually. Does that meet the requirements for selling repossession vehicles, which I think can’t be sold like just purely online? And just get your thoughts on the kind of online-only whole car space? And if that’s anything you might ever desire to expand into?
Jeff Liaw: It’s possible. I misunderstand your question, but we certainly have expanded into and or?
Ryan Brinkman: Like what openlane and ACV might do, for example, online-only
Jeff Liaw: We do, I mean, in some respects, compete with them as it stands today. We are trying to earn the right to sell those cars from financial institutions, from corporate fleets, rental car fleets and the like. So we compete with many industry participants, including the traditional physical auction houses you have in mind. So that’s a reality and has been for a long time, call it 3/4 of our business or thereabouts is insurance and the balance is not. And so if somehow the insurance — if somehow we were to separate the businesses, which for all the reasons you’ve heard on this call today, we never would. But our noninsurance business itself would be a large-scale auction house without insurance whatsoever. Now so it turns out that having the two combined massively enhances the value proposition for both sides of it as well.
Ryan Brinkman: Very helpful. Thank you.
Operator: Thank you. Our next question comes from Craig Kennison with Robert W. Baird. Please proceed with your question.
Craig Kennison: Hey, thanks for letting me back in the queue. I just wanted to follow-up on the UK business. You mentioned, Jeff, that insurers want you to be more vertically integrated there and you’re going to meet them where they’re at, which I understand. But is there some future state of the world where you could divest that dismantling business piece or is there a fundamental need for that to be connected in the UK, and I just don’t understand it.
Jeff Liaw: Well, there’s no expectation that we’re going to divest it. We don’t generally take on initiatives like that intending to — for them to be temporary. But intellectually, I think the reason you struggle with it, Craig, is you are natively a US analyst and you are accustomed to decades of an industry in which the auction houses and the dismantlers and the repair shops are altogether separate pieces of the value chain, right? You’ve never seen them intermingled, and that’s how we’ve operated now for 40 years and change. We’ve always preferred the notion of pure neutrality, and we’ll sell the car to whomever values it — to whoever, pardon me, values the car, the most whatever they’re going to do with. In the UK, we’ve heard loud and clear, and it’s not a one-off request, right, it is a near consensus view among the industry that there is value in their salvage auction provider, likewise providing access to dismantle parts.
And so we want to address that head on. Ultimately, the customers’ preferences prevail. We can certainly articulate to them why we think the circular economy can be equally supported with third parties doing the dismantling, but we are also happy to do it if that’s what they would like us to do.
Craig Kennison: And is that unique to the UK or are there other markets in Europe, for example, that have that same request?
Jeff Liaw: I think it remains to be same. There are a lot of different forces at work here, including divergent views about alternative parts utilization. So there are some countries you can imagine in which the OEMs are very influential and they’re able to preference insurance companies and repair shops to use first fit parts. There are other countries in which the carbon reduction initiative is more critical. And therefore, the use of recycled parts is more important. So I don’t think it’s the UK alone, but it was certainly the UK most acutely, but this is also a dynamic game, right? There’s no question that preferences will change over the course of the next year three and five in many of the countries in which we do business.
Craig Kennison: Great. Thank you.
Jeff Liaw: Okay. Thanks, Craig.
Operator: Thank you. There are no further questions at this time. I would now like to turn the floor back over to Jeff for closing comments.
Jeff Liaw: Great. Thanks, everybody, for joining us for the fourth quarter and we’ll talk to you after Q1. Thank you.
Operator: Thank you. This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.