Key management at the dealership or repair shop is no easy task. While some struggle to keep up with keys to one car, you may have dozens to hundreds of keys under your control at your business.

Key control presents a number of risks. From daily inefficiencies to added costs and risk to business operations, missing keys aren’t something you can afford to ignore.

Here are three key risks to watch out for.

Missing Keys

Without a system to secure and track control of your keys, they can easily go missing. That’s a problem for sales, service and management, since it can be difficult to show inventory and take care of customers when you can’t find a key when you need it. Plus, lost keys can add up to a significant business expense at some dealerships.

In one survey, dealerships lost an average of nine keys per month valued at between $12 and $550. At a midrange replacement cost of $275, the cost added up to $29,700 per year, which is like losing track of a whole vehicle!

With advanced fobs, transponders and keyless systems, the costs of vehicle keys continues to go up. A smart key fob for the BMW i8 costs more than $1,000 to replace, while keys for exotics like Aston Martin and Bugatti can climb to five or even six figures.

Complicating things further, lost keys and stolen keys can be hard to tell apart. A missing key could just be misplaced, but it might be the first stage in the theft of a vehicle, greatly multiplying the cost of a loss.

Brand Risk

Key management problems also cause significant risk for your business brand. If there’s poor organization at your business, it could be contributing to talent retention problems as frustrated sales and service personnel look for better-run shops.

Customers also expect a dealer or shop to keep expert track of keys for showing off sales inventory or handling car repairs. Customers can’t buy what they can’t open or test drive, and misplaced keys will quickly send new vehicle sales to a competitor.

Meanwhile, a lack of key control in the service department could lead to additional problems for your brand. Unexplained mileage and vehicle damage on customer cars can lead to a liability lawsuit, with customers seeking compensation and causing more PR risk for your brand.

Business Interruption

A failure in key control can even lead to more serious consequences for businesses that experience a break-in. That’s because when thieves decide to take a key in order to drive away in a car, they rarely stop at just one.

Thieves have been documented taking up to 200 keys at once, even if they are only able to drive away a few vehicles at the time of the theft. Such key thefts are not uncommon and there are frequent stories in the news, such as this recent case of a dealership in North Carolina being robbed of cash, five vehicles and all of the titles and keys for every car on the lot.

In some ways, these thefts are almost worse than a stolen vehicle. This is because the loss of a large number of keys at once can bring operations to a halt and even put business continuity at risk.

Managing Key Control Risks

Key control risks at the dealership or repair shop can be minimized by taking the right steps. Consider taking the following precautions:

  • Secure your keys. Invest in a locking key storage solution that makes keys accessible only to authorized parties.
  • Control key box access. Limit master keys to key storage and consider using an automated system that tracks access.
  • Designate key procedures. Create procedures for accessing, using and returning keys. Train employees on the process.
  • Consider insurance protection. Review your insurance options for ways to protect against theft, liability and business interruption.

 

Lockton Affinity Aftermarket offers customized insurance policies to help protect your business from these and other risks. Visit LocktonAffinityAftermarket.com to learn more.