Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Matthew Fassler with Goldman Sachs.
Unidentified Analyst
Hi. It's actually Marc Andre filling in for Matt. Just quick question first, could you talk about your view of new margins going forward following after Cash For Clunkers and as inventories are building up, what are the trends you're seeing there? And then a quick follow-up would be; on the use margin side going forward, what would be the net impact from your strategy in used and maybe potentially lower price at some point as these sales pick up and maybe supply coming back, that will be great. Thank you.
Jeff Dyke
Okay. Marc, it's Jeff Dyke. First of all in the new car side, our new car margins are fairly stable, actually grew last quarter. The great news for us is our new car inventory is in really good shape. And I think that's going to play a role for us over the next quarter. I do not see new car margins backing up and we're not seeing that in October.
From used car perspective, our used car inventory is in great shape. We are not at risk having cars having to go to auction in the fourth quarter. As a matter of fact, we're in such a good shape going into November and December that while everybody else is going to selling cars, we should be able to buy some cars at pretty cheap prices, which is part of our strategy on an annualized basis. We now just try to come into the fourth quarter with lighter inventories. We are a little late reacting in this year, but going into November, I see us 28 to 30 days, which is going to allow us to buy cars and we are seeing the auctions softening up.
Prices are going to come down. And we're going to be in really good shape to be able to buy some cars cheaper so that we can bolster margins at the quarter ends and into the first quarter of next year.
Unidentified Analyst
Great. Very helpful. If I may -- just one other follow-up would be, the 10.5 million SAR for 2010. Can you talk about the underlying assumptions behind that, just because we've been hearing numbers from different sources of Ohio and -- Powers and all that, if you could comment, that'd be great.
David Cosper
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