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Key fob on ground

The Cost of Losing Your Dealership's Keys

On a normal business day at your dealership, keys pass through dozens of hands. They travel back and forth between salespeople, sales managers, porters, and service technicians, which can quickly lead to disorganization.

If your dealership doesn’t have a reliable way to account for vehicle keys, you won’t know how long someone has had a key checked out or even who checked it out. And when keys go missing, the costs mount quickly.

 

The Cost of Replacing Keys

Not only is mismanaging keys unproductive and frustrating for employees, it leads to unnecessary expenses. Based on our analysis of various online sources, we found that OEM key replacement costs have increased by as much as 150% in five years. This rise can be attributed to supply chain disruptions impacting chip availability, advancements in key fob technology, and inflation.

Because of this increase, you can expect to pay $250 to $400 to replace a basic key fob, and $350 to $700 for a smart key. If your dealership loses five keys a month with a replacement cost of $400 each, you’re spending $2,000 a month on key replacement costs alone. In a year, that amounts to $24,000 — and that’s a modest estimate!

OEM Key Fob Pricing chart

 

Research Methodology 

We compiled this data from various sources to establish approximate key replacement costs. We only included OEMs for which we were able to find pricing data. Sources include:

Key replacement costs add up quickly, but that’s not all you have to worry about. Often, lost or unidentified keys result in impatient customers waiting for test drives, affecting the customer experience. If missing keys are costing you sales, how much is a solution for that problem worth to you?

 

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Reducing Key Replacement Costs

So what can you do to minimize the impact of missing keys? The first step is to make sure you have an electronic key management system so you know which employees took keys and when. If a key does slip through the cracks, the system can alert you that the key hasn’t been returned so you can look into the situation further. For additional transparency, location tracking technology can show you where your keys are on your lot at any given time. With these solutions combined, you could save thousands of dollars a month on key replacement costs.

Losing dealership keys is not only a hassle, but also a significant financial burden. With rising key replacement costs and the potential impact on sales, investing in a reliable key management system and location tracking technology is no longer a luxury — it's an essential step toward a secure, efficient, and profitable dealership. These solutions can save you thousands of dollars and ensure a smooth customer experience. Take control of your keys today to streamline your operations, boost efficiency, and protect your bottom line.

Read More About Dealership Key Control

This post was originally published in 2016 and was updated in 2024.

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