Solving the Car Theft Epidemic

Welcome to another episode of the Car Dealership Guy Podcast.

Today, CDG is joined by Melissa High, Vice President at LoJack, who discusses how to protect vehicles from the car theft epidemic, which saw over a million vehicles stolen last year. High also covers why insurance premiums are soaring, the brands most at risk of theft, and how LoJack helps law enforcement recover stolen cars.

Stream the full episode now: YouTube | Spotify | Apple

This episode of the Car Dealership Guy Podcast is brought to you by:

Stream Companies - Full-service, fully integrated, tech-enabled ad agency doing the ordinary extraordinarily well. Learn more at streamcompanies.com.

Auto Hauler Exchange - The Auto Hauler Exchange has revolutionized the way vehicle haulers and vehicle shippers collaborate. The Exchange is the first digital marketplace of its kind in the vehicle logistics industry. Learn more at autohaulerexchange.com.

LoJack - Nationwide stolen vehicle recovery and connected car solutions for dealers and consumers. Learn more at lojack.com.

CDG Job Board - Connecting world-class talent with top-notch companies in Automotive. Find your next role—or start hiring today—at CDGJobs.com.

Interested in advertising with Car Dealership Guy? Drop us a line here.

Want to be considered as a guest on the podcast? Add your name here.

Episode Topics:

(00:00) - Intro

(02:30) - Vehicle theft in the US

(06:48) - Do you see asset protection as a booming industry?

(09:52) - Melissa’s background and career

(12:38) - What are you focused on today when thinking about challenges in the industry?

(15:47) - What brands are the most susceptible to theft?

(16:57) - Is any brand impossible to steal?

(17:44) - What impact is theft having on insurance?

(20:25) - What are the biggest pain points for dealers?

(21:37) - What are the economics of your products for dealers?

(23:51) - How are you competing with Air Tag?

(27:02) - Vehicle theft and recovery stories

(31:08) - What trends are you seeing from manufacturers for vehicle security?

(33:31) - What do you predict for vehicle theft over the next 5 years?

1. Vehicle thefts are at all-time highs.

High starts off with some pretty startling statistics. In the U.S., a car is stolen every 30 seconds. Last year, over a million cars were stolen, and these stolen vehicles are used to commit further crimes or are quickly sold and shipped out of the country. Carjackings and fraud are also at all-time highs. High attributes the uptick to many different factors, including under-resourced law enforcement organizations. “[Law enforcement] doesn’t have the manpower to go after all these vehicles,” says High.

2. How the pandemic impacted vehicle theft trends.

During COVID-19, dealership lots became more susceptible due to less staff on-site and remote working. High explains that criminals took advantage of unmanned dealership lots to steal multiple cars at once. They even broke into showrooms, stole key fobs, and later returned to steal the vehicles. “It's not in certain markets. It's now across the whole nation. It's across the whole country. It's not only the inner cities. It's not only certain markets. It's everywhere,” High explains. High has even heard accounts of sales reps being held at gunpoint during test drives.

3. How car dealerships can improve their security measures. 

Better key management with clear sign-out and sign-in processes, as well as keeping vehicles locked at all times, regardless of the time of day, are crucial. Securing the lot itself with fences and limited entry/exit points is also important for dealers if they have the capability. LoJack goes beyond these measures by adding an extra layer of protection. When installed in a vehicle, LoJack's technology offers real-time location tracking. This allows dealerships to not only verify a vehicle's location but also quickly find out if a car is not where it needs to be. The more unrecovered vehicle claims a dealer has, the more their insurance premiums rise.

4. Helping law enforcement stay in the know.

LoJack has developed an app for law enforcement that integrates with their systems and provides timely alerts about stolen vehicles. This app allows officers to access data efficiently and communicate across jurisdictions, making vehicle recovery more possible. The app even works when thieves dismantle factory-installed tracking systems, allowing vehicles to be recovered more quickly before they are shipped off or chopped. 

5. Beyond car theft recovery.

LoJack works with dealerships to find ways to use their system in daily operations to improve efficiency, generate profit through sales, and ultimately benefit both the dealership and the customer who purchases LoJack. This extends to customer retention strategies that keep buyers coming back to the dealership.

6. The car brands most susceptible to theft.

According to the National Insurance Crime Bureau, pickup trucks from Chevy, Ford, and Dodge have seen a rise in theft rates. High notes that thieves often target vehicles with technical vulnerabilities, like a lack of immobilizers or other basic anti-theft technologies. But dealers and OEMs are getting savvier and putting more safeguards in place to protect those vehicles.

7.  The increase in vehicle theft has directly impacted insurance premiums.

Thefts are a huge reason why insurance premiums are over 25% in some areas. This is definitely noticeable in states like Florida, where premiums have soared. Insurance companies are raising premiums to cover the higher risk, and claims on garage and liability policies are increasing rates for both dealers and customers.

8. LoJack recognizes that stolen vehicles are just one piece of the puzzle for dealerships. 

The company collaborates to create a customized LoJack implementation process to help with daily operations. This includes real-time 24/7 tracking of all inventory, allowing dealerships to pinpoint car locations instantly and set up alerts for unauthorized after-hours activity. There’s also a dedicated dealer app that monitors battery health to catch potential issues before the customer does. “On all levels, having a line of sight of your vehicles, trip history on your vehicles, and having the ability to know exactly where your vehicles are at 100% of the time, is key,” explains High.

9. What’s the difference between LoJack and Apple AirTag?

High acknowledges that some people might consider AirTags, which offer location tracking as an alternative to LoJack. But there are key differences between the two. LoJack goes beyond location tracking by creating and fostering customer engagement. Most consumers use their LoJack app 8 to 12 times per month. The app can notify customers about open recalls before official letters even go out, allowing dealerships to reach out proactively and schedule service appointments. All customer interactions within the app are directed back to the selling dealership.

10. Speed wins the day.

Quick action to recover stolen vehicles is essential because thieves often move stolen cars to temporary locations before breaking them down or shipping them overseas. High shares that a LoJack user in Virginia had four cars stolen from his dealership consecutively, leading law enforcement to conduct an intensive investigation. With LoJack's active tracking link, police quickly obtained the vehicles' locations, for a swift recovery.