Auto dealers are no strangers to uncertainty. Between on and off tariffs and material shortages, the road ahead looks bumpy. While tariffs have been stealing headlines, a rare earth minerals shortage is also impacting the auto industry, forcing one Ford plant to shut down recently. And in May, reports indicate that 8.9% fewer cars and 14.7% fewer car parts were shipped to the U.S.

As dealers focus on forecasting sales and managing supply chain slowdowns, thieves are watching and waiting to take advantage of this market disruption. Consider the fact that new car prices are approaching an average transaction price of $50,000. Multiply that figure by the dozens of cars sitting on most dealer lots and the total cost of available inventory can easily be valued in the millions. Having just a few cars stolen not only results in a big financial hit, but it can frustrate customers who now have less inventory to choose from. In turn, dealers are neglecting a massive vulnerability – physical security. A single theft can set businesses back financially and reputationally taking a massive toll on business.

What’s Driving Theft?

Unfortunately, this isn’t a new issue. During the 2008 economic crisis and the COVID-19 pandemic, we saw the price of used cars spike as new car inventory dwindled amidst delays, driving an increase in theft. We’re seeing signs this could happen again, possibly driving up the price of everything including:

• New and used cars
• Tires
• Rims
• Catalytic converters
• Electronics

The list goes on. It remains to be seen how the latest economic burdens will impact car prices, but dealerships can’t afford to wait and see what happens. This time, dealers should get ahead of potential business impacts by prioritizing physical security.

Physical Security Barriers

So why aren’t more dealerships preparing to tackle this issue head on? I’ve seen three key reasons why they don’t prioritize physical security for their lots:

• Low priority – In my decades of physical security experience, I’ve seen thefts decimate dealerships, however, many of these organizations don’t see the need to prioritize physical security until they become victims themselves. But waiting until the damage is done often results in financial losses and reputational damage for the dealership.
• Cost – The upfront expense of security solutions can scare dealers away. What’s often not being considered is the long-term return on investment (ROI) that comes down the road. Most security solutions come with upfront or monthly costs that pay for themselves simply by avoiding a handful of thefts. Remote video monitoring has not only proven more effective, but also less expensive than on-site guards.
• Lack of expertise – With so many solutions available, from DIY to professional installs, it can be difficult for dealerships to figure out a physical security strategy, especially if they go at it alone. After all, your expertise is in selling cars – not security solutions!

Over the years, I’ve worked with businesses across industries and found the same to be true – if you wait until something happens to put the right physical defenses in place, you’re already too late. The only way to keep inventory and parts where they belong – on your lot – is to act before thieves do. You can’t afford to gamble on security.

Steering Security in the Right Direction

Dealers should be focused on boosting sales, not watching surveillance monitors. That’s why it’s important to stay a step ahead of criminals by putting the right solutions in place. Dealers can start making changes by focusing on three key areas:

1. Identify Security Gaps – The first step towards solving any physical security problem is understanding where gaps exist. Does your property have a defined perimeter? Is the site monitored 24/7? Are processes in place should an incident occur? These questions lay the foundation for a solid plan.
2. Create a Plan – Speaking of a plan, it’s important to have one in place! Everything from deciding how to close those gaps, to what protocols are in place should an incident take place are necessary for a sound physical security strategy. For those not sure where to start, partnering with a security expert can go a long way.
3. Layer Solutions – The best security solutions available today are comprised of layering together technology, people, and processes. For example, installing surveillance cameras is a great first step. Pairing it with AI-powered analytics takes surveillance to the next level. And adding on 24/7 live remote monitoring ensures around the clock, proactive security.

Outdated closed-circuit television (CCTV) systems no longer cut it. After all, what good is surveillance footage that can be viewed after the fact if thieves have already gotten away? To combat today’s thieves, a proactive security solution is a must.

Act Now, Protect for Later

With car prices up and economic conditions uncertain, your inventory is too valuable to rely on outdated tools for protection, or worse, leave unprotected altogether. Each theft could mean days – or weeks – of lost revenue, delays, and reputational damage. Don’t wait for trouble to strike. Act now and steer clear of costly crime later.

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