David Lim (Wachovia): Did you see a lift on the same-store sales gross profit on the used vehicles or was it a similar f performance for CPOs?

Mike Maroone: The CPO business goes in line with the balance of the rest of the business, you have got the same factors with the CPO business, but I do think it is a bigger share of used, but from a margin perspective I do not think it is that different.

David Lim (Wachovia): What additional opportunity is there to refined advertising spending?

Mike Maroone: There is always opportunity and our basic strategy is to measure everything we can and allocate our dollars based on where we are getting the highest amount of traffic and the ability to close that traffic. It is a continual tweaking. The e-commerce business continues to grow exponentially and we have made significant investments in our website and our e-capability. That is the biggest trend you are seeing. There is some mix shift away from print. I do think there are opportunities there, but we are looking at returns and measurability for everything we do.

David Lim (Wachovia): Are you seeing more of an in-elastic demand behavior on the luxury mix side?

Mike Jackson: The way the cycle usually plays out at the beginning of the downturn is the volume segment that gets hit first. It is only when you are deep into the cycle that you have an impact on luxury. That is where we are at now. I would describe it more as the uncertainty factor as to where all this is going that customers are hesitating. The purchasing power is still there. I think once there is a clear line on where the economy is going that the worse is behind us, I see the luxury business resuming the quickest. It is the last to hesitate and it is the first to resume.

David Lim (Wachovia): When it comes to your ordering, are you still backing off on orders especially with the domestic makes?

Mike Maroone: We are working hard to manage our inventory. We finished the quarter at 57 days. I would say that is higher than where we have been over the last few quarters. A lot of that is because the March sales pace did not deliver as called out.

David Lim (Wachovia): There is that strike with American Axle in Detroit. How large your GM SUV inventory is?

Mike Maroone: We have got an adequate supply of GM inventory. The strike has not impacted our ability to sell GM products. All manufacturers are on the heavy side with the big SUVs and pickups and I do not think GM is any different there.

David Lim (Wachovia): Are you still hesitating on orders or are you still accepting what the OEMs are distributing?

Mike Jackson: We view the marketplace as remaining more risk than opportunity and we are managing the business on the conservative side.

Darren Kennedy (Goldman Sachs): Are you running out of room for expense cuts in this environment?

Mike Short: We have been seeing the de-leveraging in the cost structure reflecting in this environment. As gross declines it is more and more difficult to extract SG&A savings, but it is a continuous process for us. We do think that there are more opportunities for efficiency and we are pursuing them.

Darren Kennedy (Goldman Sachs): On the inventory side it is one of the higher numbers in seven quarters and environment is responsible. Is this mostly focused in specific geographies?

Mike Jackson: I would say for the domestic, with this combination of the economic uncertainty and high gas prices over this period of time you are going to have a real shift towards the value price points, which coincidentally is also the high fuel economy point because we do not charge the fuel economy in this business; quite the opposite. Restructuring our inventory towards that buyer that is appearing for the first time to this degree in the first quarter is an issue for us. With the imports you have the issue that for our geography is there a sweet spot. You have Toyota, Honda, and Nissan all under pressure and with much more inventory than they traditionally care to carry and so we are managing that.

Darren Kennedy (Goldman Sachs): The tax rate is at 40.6. Why is it tracking higher these days and why do you expect it to continue?

Mike Short: We expect the ongoing rate to be about 40% and prior quarters seem to have benefited from resolution of state tax matters that have resulted in a lower effective rate in that quarter.

Matt Fassler (Goldman Sachs): Do the banks tighten up late in the game on the credit front and stay tight and exacerbate the issue?

Mike Jackson: The banks are in cleanup mode. They are, for instance, accelerating repossessions or any vehicle that they see out there that has a question mark over it they are proactively trying to deal with it now rather than later. They are trying to take the losses now. They are trying to deal with the situation now. At the same time, they are tightening credit standards to get a running start of a clean portfolio. You have both those factors happening at the same time and yes it happens deep in the cycle and then you get past this and you will get back to the normal operating state.

Matt Fassler (Goldman Sachs): Do they stand in the way when natural demands will be coming back because of lower rates or other factors?