Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Richard Kwas – Wells Fargo Securities.
Richard Kwas – Wells Fargo Securities
Mark, on that slide 13 regarding U.S. rack average weekly pricing. I thought that was a very good slide. A question about did you look forward here? You're coming off a higher base relative to your competitors and that's part of the reason you have not increased pricing as much as maybe some of the others.
Going forward, as we think about a recovery, economic recovery, shouldn't that mean that you should be able to raise prices when things get better?
Mark P. Frissora
That's correct.
Richard Kwas – Wells Fargo Securities
Okay. So you –
Mark P. Frissora
That's exactly right. So our downside right now becomes an upside as revenues start to increase year-over-year. You're exactly right on the money. This is the big opportunity for us.
Richard Kwas – Wells Fargo Securities
Okay, so then –
Mark P. Frissora
And you're going to see that. That's why I talked to you about even in the fourth quarter as we got to flat to up revenues, I mentioned to you October pricing, even on an ROPD basis was going to be up. So you're reading that exactly right, Rich.
Richard Kwas – Wells Fargo Securities
So in a recovery scenario, you're going to have more price and power relative to your competitors in your view.
Mark P. Frissora
Absolutely.
Richard Kwas – Wells Fargo Securities
Manheim Index, I know that you've been using some other outlets in terms of disposing vehicles and that's been helpful to you. How should we think about with Manheim Index kind of at a peak here, potentially near peak, if we see some retrenchment there, how are you thinking about how that's going to affect depreciation rates?
Mark P. Frissora
Well, we believe next year depreciation rates will be down year-over-year probably in the neighborhood – our actual fleet cost, I shouldn't say depreciation rates. I don't want to forecast that, but we've talked about our fleet costs being down at least 2% to 4% next year in that range. So we know that.
And then in terms of residual values, we continue to think that residual values in the U.S. anyway will continue to be strong and expect total stability there. We have no expectation that demand for used cars at both dealers lots, those inventory levels will continue to be fairly low and tight. So we don't see any – we see really a tight supply demand curve right now.
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