Tuesday, January 27, 2015

What Do 2014 Dealership Vehicle Thefts Reveal About Key Control?

Woman dangling keys out of car window
In 2014, more than 180 unique vehicle theft incidents affected dealerships throughout the U.S. We track these types of incidents in the news, so we heard about several of them as they occurred.

Toward the end of the year, we wanted a comprehensive look at how dealerships were being affected by theft incidents and how much of an issue inadequate key control practices are. So we did some informal research into dealership thefts involving vehicles (we didn’t account for stolen tires, equipment, etc.). Our data is taken from published news stories and police blotters.

Here are some of our observations:
  • States with the most unique incidents: California and Florida
  • Most active months: September-December
  • Average cost of reported incidents: $80,846
  • Most expensive incident: Over $1 million
  • Most vehicles stolen at one time: 9
  • Average number of vehicles stolen: Two
  • Percent of incidents involving stolen keys or keys left in ignition (as opposed to vehicles stolen during test drives, etc.): 41 percent of incidents where the method of theft was reported
  • Percent that were inside jobs: Up to 4 percent

(NOTE: Monetary figures, vehicle counts and incidents involving stolen keys are based on the total number of incidents in which this information was available, so our calculations are modest. The actual numbers are likely higher.)

The Takeaways

As we move into 2015, there are a few key insights you can take away from last year’s bouts of vehicle theft: 
  • Do your research. If your area has a high vehicle theft rate, make sure your vehicles and keys are secured, particularly if you sell a commonly targeted make or model.
  • Be aware of when theft is most frequent in your area. You should always exercise sound security practices, but extra precautions might be necessary around times when crime activity is high.
  • Keep your employees accountable. Employees aren’t always responsible for theft. However, if they were the person who handed the keys over to the thief (as in cases of identity theft or identity fraud), they can provide vital information about the circumstances surrounding the theft. Having a verifiable audit trail showing who checked out a key will help you expedite this process.

To see if you’re putting your inventory at risk, read our post “Are You Adequately Securing Your Keys?

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