Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Rod Lache - Deutsche Bank Securities.
Rod Lache - Deutsche Bank Securities
Thanks for the color on the leverage covenants and the plans to address that. I was just wondering if you could just give us a little bit more color on the extent to which you can bring Used inventory down because I think that that actually does affect the covenants, right, because that was being funded by your revolver, or am I wrong on that?
Craig T. Monaghan
No, that's true. Used Vehicle inventory was basically essentially 100% financed out of working capital.
Rod Lache - Deutsche Bank Securities
So what is the flexibility on bringing Used inventory down at this point?
Craig T. Monaghan
Bringing Used Vehicle inventory down is one of our objectives. We're still running in the mid 40day levels. We've got an objective of getting down into the 30s. That would produce additional cash.
Charles R. Oglesby
One of the things that we're doing with that, Rod, as I mentioned, we decreased our Used Vehicle inventory by $10 million, but as you recall, we were very heavy in the subprime business in the past and so as we've repositioned the inventory - and that market basically has moved away from the industry right now - that, as we continue to bring the inventory down, our day's supply is still remaining about where it has in the past. But we will continue to drive it down and our focus is to get the day's supply down to 35 days.
Rod Lache - Deutsche Bank Securities
And how comfortable are you with the ability to execute assets sales in this environment? Is this something that is pretty advanced at this stage or is this something that in your mind still has some risk?
Craig T. Monaghan
Yes, Rod, we've got a lot of activity. We're talking to people who have the wherewithal to execute these transactions. Some of the activity is around dealerships. Some of it's around [dirt]. We've got a pretty high level of confidence that we can get this stuff done. It may take us six months to get through the list that we've put together, but we feel pretty good about it.
Charles R. Oglesby
There are more sellers in the market right now than there are buyers. And as we look at our portfolio, we're looking at it strategically as well as the returns on our investments.
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