So that's the first thing they're going for. Any vehicle that they can pull the fan, they can dismantle what's factory installed, that's what they're doing. They know it, they study it. Over 1 million cars in the US were stolen last year. But the big question is whether or not there is a solution to this epidemic.
Today I'm speaking with Melissa High, Vice President of LoJack, a stolen vehicle recovery system for drivers, car dealers and law enforcement. Don't forget to click subscribe so you never miss an episode. But before we get into the show, this episode was brought to you by Stream Companies. Stream Companies is the type of agency partner that easily becomes an extension of your team, fully engaged in the growth of your business. They're impressive team of auto industry and marketing experts dive in to understand your business needs, study the data and provide full media strategies that leverage every channel that is right for your specific business and its goals. Stream is fully integrated, full service and just celebrated 28 years of consecutive growth. A feat that is only possible through collaborative partnerships and exceptional customer service. From building your brand, to leveraging their patented ad tech, Stream has driven a capture that attention of your shoppers and convert them into buyers. They work with some of the biggest and best dealerships in the country and serve all OEMs.
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Lastly, this episode is also brought to you by LoJack. I'd like to thank LoJack for coming on as guests and also supporting this podcast. Melissa, hi on the CDG podcast. Melissa, welcome. Thank you for having us. I'm super excited to be here and it's a great opportunity for us. So thank you again for having me. Pump to have you on. I need some representation on what's going on with all these vehicle thefts in our country. So excited to take into the conversation. Yes, it's an all-time high right now. You know, I read somewhere that a vehicle is stolen in the US every 30 seconds. Is that legit? Yes. And you know, people don't realize that it's, you know, years ago, even back when I was a kid, my father's, I come from a family of law enforcement, right? So when I was young and teenager, you know, you would hear the stories of teenagers stealing vehicles to drive a transam, you know, joy ride a vehicle and then put it somewhere in a parking lot. Now vehicle crime is not only an all-time high, but these vehicles being stolen are used to commit other crimes. It's created for a very dangerous situation for not only the community and residents, but also law enforcement. So it's just really been, as it increases, it's also at a whole other level of what these stone vehicles are being used for and how quick they're being sold and shipped out of the country. So it's really, it's really become a very big situation worldwide, but especially here in the US.
I mean, last year, what was it, over a million vehicles were stolen according to NICB, which is the National Insurance Crimes Bureau, which I mean, if you think about that, that's increased, you know, 12,000 plus units over the prior year. But it's also, you know, it's carjackings are an all-time high. So it is at an all-time high. So it's very, very complex. And there's not enough resources, right? Law enforcement is very under-resourced. They don't have the manpower to be going after the volume of vehicles. So they love to partner with, you know, what we offer at a low-jack because we're very integrated with them to be able to aid them in effective and higher chances of recovery.
Tell me about, so let's break down these numbers a little bit more, because then I want to get into like, where we're headed as an industry root cause. There's also brands, most susceptible. I have my own personal experience. I've actually spoken about some prior episodes about my experience with, you know, most stolen vehicles and most stolen parts, most stolen cats, you know, catalytic converters. That's a fun one.
What are we seeing in terms of thefts from dealer lots versus consumer? Cause I have to imagine there's, you know, some pretty significant difference there. Oh, yes, yes. So dealer lots. So, you know, let's think about first COVID, right? COVID impacted the industry greatly. We were all, I mean, the world, right? We were all shut down and basically everything had to be no touch, no contact, a lot of remote. So which caused dealers to, they're not at the store. They don't have their staff at the stores. So dealers started seeing an uptick in vehicles being stolen off their lots just because it's susceptible, right? There's not as much movement. There's not as much activity going on. So then, you know, it's just incrementally increased. And what we're seeing is vehicles are being stolen off dealer's lots, not even just one at a time. We see six, seven or they're breaking into the showroom and stealing 60 key fobs and then go returning to the lots, you know, days prior after that to steal these vehicles. And it's just an ongoing battle.
And what's interesting is it's not in certain markets. It's now become 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. Yes, where there's higher volume of vehicles on dealers' lots. It may be easier where there's more, you know, dealers are land like locked up in the Northeast where there's remote lots all over the place. So it's a little bit harder to have good lot, non-asmeir effective asset protection. You know, that's where we come into play to aid in that. But it's happening on a nightly basis on a daily basis.
I mean, and it's not, we've seen it. We've seen instances where salespeople were on test drives and they were held up at gunpoint and had to get out of a vehicle and they were stole the vehicle on a test, you know, a chronicle claiming to be a test drive, right? It was a false test drive. It was someone actually looking to steal the vehicle, but it's happening on a daily basis. So look, I know that asset protection, I mean, look, key machines, low jack, right? Like tracking vehicles, that's been around for decades. But asset protection in general, do you see that as a booming industry with an auto, right? Like if I'm putting my entrepreneurial hat on and I think about opportunities where the industry, you know, like dealers are struggling or even consumers, of course, but do you see that as, you know, just a booming industry? Yes, absolutely, especially now.
So what dealers really need to, what we help, you know, solve for is it's not even, it's good key management as well, right? So there's a lot of things that dealers have to do today and make sure they have good process in place and key management accountability. There should never be keys anywhere exposed, left unattended, everything should be not only managed and locked up at all times, but have a good process to the way keys are being signed out and signed back in and good management to that, as well as vehicle inventory being locked at all times, right? Making sure that whether it's during the day, whether it's at the end of the night that all their vehicles are locked at all times.
And then also, just anything you can do to protect your lot. So block lanes, fences to make sure and ideally only one way in and one way out is best, it's not always possible for every dealer, but the more that they can make it difficult to steal, right? And then have a good lot management process, which is where we low-jacklier come into play, where you have, you know, a second layer protection or an added layer of protection installed on all of your vehicles, it gives you the ability to have line of sight of where your inventory is at, but also no one is not in the right place, right? If you have to be able to quickly identify where a unit is to know, hey, this is not in the right place. Why is this vehicle over there? Or why is this vehicle off a lot after hours? To be able to take action and get that vehicle back, get that asset back.
So yes, asset protection in anything that a dealer can leverage to protect their assets and if it's stolen, be able to recover it. It's extremely beneficial for dealers today. When you think about the finance side of it, you know, every stolen vehicle, it's un-recovered, right? It leads to either a direct hit on their financial statement or, you know, eventually the more claims you have, if you're putting it through your G&L or your garage liability insurance, the more claims you have, the higher your premiums are. And that's where you start running into that risk where you're now, it's costing you even more money to file that claim. So this is why dealers want their inventory back. They wanna make sure they have good process in place to make it as difficult as possible to be hit. And then if it's stolen, how are you getting it back?
You've been in the industry for quite a while. I mean, today you are the VP in charge of all of LoJack. And again, you've been working with dealers for a long time. Just give us a brief overview of how you got to this point in your career and sort of where you started, how you got to today where you're spearheading, just, you know, asset protection for dealers. Sure. So actually I started about 16 years ago, almost 17 years ago now, where I was, had the opportunity to work in more of the TPA or like an administer of all the products or service contracts and so products sold by dealers to customers, reinsurance programs.
And what I learned very quickly when that opportunity came to me was, hold up, I need to really understand the car business, right? I need to work in the car business to be successful in that side of the industry, actually partnering with dealers and helping with income development. So fortunate for me, I had some general managers that I knew that were in the business, family, friends, that took me under their wing and I started working in retail. Jurassic Change, I came out of the hospitality industry leading the charge of Marriott as a director of services, crossed over into automotive retail, worked in sales, worked in F&I and then went back over onto the reinsurance side of the business and service and helped develop, you know, effective and profitable reinsurance companies and help drive penetrations of products and profit center and F&I, right?
So we're dealers nationally and then was, explored the opportunity, you know, with Spiriton who in 2019, I joined as a dealer sales and success manager. From, and that was our product, you know, legacy to Cahu was known as, sorry, the legacy to LoJack was known as Cahu. And so when I started in this connected car, asset protection, GPS, I learned, you know, okay, what a, what a dealer's looking for. How does this benefit a dealer? And really was a student of this type of product, right? So I'd come out of the retail space, understood the value of, you know, reinsurance, products, core products being offered, but how does, you know, what's now in LoJack at that time it was Cahu, how does that help dealers? How do dealers leverage and get the most out of it and what it offers, even beyond asset protection? And then my role grew over the last, you know, a few years, so then we were acquired by Celera and now I'm the vice president of all LoJack sales and service.
So what are you focusing on nowadays, right? Like what, what's occupying your brain space? When you think about challenges in our industry, how you can, you know, solve that, bring solutions, what are you doing? So it's really continuing to stay in the know. We work, you know, when you think about, we partner with dealers, we partner with law enforcement, right? We are heavily integrated with law enforcement and the only company out there that has this type of integration where something we've more recently developed, you know, which full I'll share in here as well is the LoJack for law enforcement, right? We developed an app and that's part of what we focus on is what do we need to continue to do to improve? How do we continue to solve for pain points that the dealers are experiencing? Because again, effective law management, it encompasses a lot, right? Risk and asset protection is one piece of it. But how do you effectively leverage LoJack to aid in your day-to-day business to improve operational efficiency, to have a profit center, to be able to sell this solution and transfer those benefits over to customers buying from each of our dealer partners?
你现在在关注什么呢?就像什么事情占据了你的大脑空间?当你考虑我们行业的挑战时,你如何解决它,提出解决方案,你在做什么?所以继续保持了解是非常重要的。我们与经销商合作,与执法部门合作,我们与执法部门紧密合作,是唯一一家具有这种整合方式的公司。我们是最近开发的LoJack for Law Enforcement的开发者,开发了一个应用程序,我们专注于我们需要继续做什么来提升?我们如何继续解决经销商正在经历的痛点?因为有效的法律管理包括很多方面,风险和资产保护只是其中之一。但是如何有效利用LoJack来帮助提高日常业务的运营效率,建立一个盈利中心,销售这个解决方案,并将这些好处转移到每个经销商的客户身上呢?
To then, how do you leverage retention? Because we also drive customer retention back to the selling dealer. So it's a very comprehensive solution. We have a team of LoJack liaisons, they're all former retired law enforcement, they're part of our LoJack team and they was some of our product folks, myself, some of my team members, Canvas the US and took feedback from our dealers, but also law enforcement. How can we help you? Because if we help you, they're serving the victims and the victims are dealers, right? When it's a dealer inventory vehicle being stolen and then they're customers who are buying LoJack. So how do we help improve what the process was, you know, a year ago, so what it is today? And that's where we spend a lot of our time is not only, you know, supporting our dealers with process and making sure they're getting the most out of what we offer in LoJack, but also how do we continue to expand and develop so make sure we're staying cutting edge and providing that level of protection and peace of mind.
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So what brands, right? You mentioned dealer pain points, I wanna get into that, but before that, what brands are you seeing today as the most susceptible to theft? Yes, so National Insurance Crime Vero again is a very valuable resource for us. They're a very valuable partner in getting good data and making sure we're staying close to the insights, but pickup trucks are number one, Chevy, Dodge, Ford. That's been on the rise over the past year. Wait, why is that? Why is that? So, I don't have a good clear answer onto why it is, but it's happening and they're buying these vehicles and they're shipping them out. So it's the value of these vehicles. As fast as vehicles are being stolen, oftentimes they're being stolen to either Canada crimes or they're being stolen to ship out of the country. And it's a big business. And whether they're going to the ports and being shipped out, where they're going up through Canada and being shipped out, that's what we're finding is they are very big, a big uptick, I should say, in those vehicles being stolen.
Let me answer, are there any brands that you're finding are impossible to steal? And I know impossible is a big word. Yes, yes. So there's nothing impossible to steal, or is everybody trying to take a stance to make it more difficult? Yes, including the factory, right? Everyone's looking for ways to make it more difficult. Well, whether it's, again, making it more difficult to get it out of the lot, whether it's looking at ways to have any kind of technology installed in the vehicle, as well as like adding a second layer of protection where if they steal it, right?
Because it's feeling impossible to say it'll be something that will prevent theft, but it's what is installed that can help recover and recover quickly. You know, to go off on a bit of a tangent for a second, I do talk a lot about insurance. I just posted the other day that insurance, vehicle insurance is up roughly premiums, up 25% year over year in March. And so my question to you is like, what do you know about the impact that rising theft of vehicles is having on vehicle insurance? Like how big of a piece is that in a driver of what we're seeing happening across the country? Because I hear it every day from dealers. I mean, dealers are losing tons of business because insurance premiums are just out of touch.
And you know, people are paying crazy prices to ensure the vehicles, the premiums are rising. It's become a huge issue. But like how much of that is driven by vehicle theft? A high percentage, right? So when you look at, over the last stat was over 20% was reported by NICB that premiums are rising. And what's happening is vehicle prices are on their eyes, right? So it doesn't cost the same to purchase a vehicle today.
Interest rates have been on their eyes. So when you take all of this into consideration for a customer to buy a new vehicle, right? Whether it's pre-owned or new, there's a chance that the insurance premium is also going to be higher because the insurance companies are absorbing for the higher risk out there because vehicle theft is at all time high. So if your vehicle is deemed a total loss because it wasn't recovered, right? Now that's insurance claim where the insurance company is paying out on the value of that vehicle.
So there's a direct impact, right? There's a direct impact to what insurance companies are paying out on losses. If the vehicle was not recovered and it was deemed a total loss because that's what will happen. Essentially, if it's not recovered and a customer files a claim or a dealer files it against their gradual liability premium, it's increasing their rates. And the more claims you have, the more your rates are going to be. But then there's also a standard increase. You see it all the time, front, you know, stats out there saying that an increase in premiums, Florida, for example, you know, Florida has seen has one of the highest insurance rates right now for auto insurance. And what's been driving that? A lot of that is, you know, the vehicle theft. It's, you know, yes, there's going to be driver, you know, everyone's insurance goes by their driving record, goes by the amount of claims they have or have had in the past, but vehicle theft is definitely impacting and increase premiums.
So you mentioned earlier, you mentioned just pain points for dealers, right? Like how are you, like what are the biggest pain points? How are you solving them today? What does that look like? So sure. So when you think about again, effective lot management, right? So what are we doing to help that? So it's really working with the store to help create a process to make sure they're getting the most out of the solution in LoJack, right? So with LoJack, if a dealer is preloading all of their inventory, they have line of sight to where their vehicles are 100% of the time, 24 hours a day, seven days a week.
We can also create alerts that will allow the dealer or any of the points of contacts designated by the dealer, Prince of Lord, the GM leading the charge at the store to say, okay, if this vehicle leaves the lot after hours, I should get this alert. So they could take action grouping vehicles, making sure they know where their loaners are, what loaners are assigned out, what should be on the lot, parts in shuttle land. So just on all levels, having line of sight of your vehicles, trip history on your vehicles and be having the ability to know where your vehicles are at, 100% of the time is key.
What are the economics of all this? Like what are dealers selling this for and store what are customers or what are dealers paying for what are customers buying it for? What does that look like? So sure, so we have different plans. Some dealers start with a lot management plan, which could be as low as $69, $79 a device or a unit. But then there's upsell, there's a second step for the airtime when you're selling it due to the customer. So, and then there's plans that have more of that consumer airtime included on the upfront purchase. And that can be anywhere under $150 a unit, a car. What a dealer typically does is they'll then, the parts department will inventory that part in, no different than any other part, right? So now there's your parts matrix and then there's your service installation.
So whatever they decide to add, whether it be three tents, four tents in your PDI or UCI department in service, right? So then that comes over to the sales department on the arrows and then, you know, they're selling it, they have the ability, you're leveraging it for operational efficiency, getting all of the benefits as a dealer with the asset protection. But then they're selling a customer, a product that's tangible, right? Something that's gonna be highly utilized from the moment they walk out of the dealership. There's features and benefits within that app that allow them to engage. It's not only stone vehicle. And are our customers rolling this into their loans as a product? Yes, they are. So what we'll see, it's typically an add-on, whether it be a hard add on the front of, you know, with the vehicle purchase or they're selling it in the finance office and basically they'll roll it into their loans. So the average, you know, the average retail cost you can expect to be depending on the term, right? So a lot depends on the term that they're rolling in, but the average, you know, anywhere from 1,099 or 1,099. And again, it fluctuates based on time and what plan they decide to enroll in.
So if you are now came to my dealership, right? And you told me about this. And I didn't know anything about it, right? I think like a dealer, right? The first thing I would tell you is Melissa, how are you competing with AirTag, right? Simple question. So how do you respond to that? So great question. I love the smile. I love this smile. Listen, I gotta give it to you like a dealer, you know what I mean? No, no, absolutely. So here's the difference, right? With LoJack being installed, yes. One would think throw an AirTag in it. I'm gonna have, you know, I'm gonna be able to see location. Here's the difference. With a product like LoJack installed on your inventory, you are getting the benefits of keeping your customer engaged with your store. The average consumer is in their app eight to 12 times per month. So when you align that, you know, what product is out there today that's being offered that is tangible, the moment they leave, they have a ways to utilize that, whether it be they set their own geofences, they use it for the speed alerts for safety, for their loved ones, you know, they get open recall notices in the app. We're getting open recall notices to the customers before the letters even go out and the dealers, our dealers have a chance to reach out to that customer, right? And everything we do, it's going back to you as a selling dealer. All the call to actions, click to call, call to schedule, everything is going back to the selling dealer. And that's why we say we compliment the manufacturer.
We're not in competition with the manufacturer. We're not in competition with AirTag. We are in, when you look at everything we offer, it's not only the peace of mind for what we're faced with today, but also there's a robust amount of benefits to the dealer and to the customer by a low jack. Yeah, I mean, if I had to sum this up in a sentence, right? You've sort of built a customer retention tool by way of solving vehicle theft. It's pretty interesting. And we do, and you know, when you think about it, automatic service reminders, and you know, we all know in automotive, whether it's we're short turnover, high turnover, you know, everyone's experiencing, you know, short staff, whether they're short staffed, whether it's the industry, the times that we're in, whether it be rate of inventory shortages, I mean, you name it. The most fascinating thing about the automotive industry is the resilience and the ability to adjust and still deliver, right? Still deliver, still sell cars, still create a buying experience for customers. And that's where we tried ourselves in making sure that we're staying ahead of the curve and really driving that back to the dealer, helping the dealers solve the pain points from the buying experience all the way through to retention.
So what we like to say is we help dealers make money, save money, and retain their customers after the sale. So I want to get out to the important stuff. Give me the any interesting vehicle theft and recovery stories, what we got? Oh my goodness. So, and you know, it's crazy that we, it's like we live and breathe this, right? So we always talk about this as a team too, with my whole team, like it's a stop-drop-and-roll. If a dealer calls, if a customer for one of our dealers, it is a stop-drop-and-roll, because again, speed and efficiency leads to the highest probability of recovery.
So a more recent story, this just happened actually yesterday. So we have a team at the conference, the IAD conference, which is, you know, auto theft conference in North chapter, which is being held in Grand Rapids right now. So one of our Lojia cleans is there. Some of our dealers are there. And one of my directors that's on my team is over there. And as their cheaper police is getting ready to start his keynote session, we have a Mercedes Benz that was stolen off of one of our dealer's laps, and happened to be out in attendance at the conference. And through our new Lojia law enforcement app, we were quickly able to identify the vehicle, get the report, you know, police report open, drop it into the law enforcement app, and within an hour, the vehicle was recovered. So they were able to get Illinois State Police on it, and then local authorities on it. And what's awesome is, you know, again, this is another point is, the thieves dismantled the OEM technology. It was ripped out. They knew exactly where to go to rip out the factory, you know, install technology, telematics, but they were able to get the location through the Lojia law enforcement app with Lojia can recovered within an hour.
I've had my fair share of vehicle theft and recovery. Unfortunately, many of the recoveries didn't come back in one piece. I'm sure many dealers can resonate with that, but there's definitely, you know, not every vehicle makes it back. So it's always interesting when you do get that vehicle back, you know, is it back and it's decently drivable? Or do you get something that, I mean, some of these vehicles you get back, I mean, my Lord, right? Like, you know, depending on where you're at, you know, you get some vehicles back that are, you know, pretty cheap.
Oh yeah, pretty cheap. Yeah, stripped down. Yeah. You wonder like, what do they do with this vehicle? What do they do this car? I mean, like, how did this get into this type of shape? Yeah, no, but to your point, exactly. And that's why how quick, like the process being quick, prevents that too. Because the longer, you know, when they steal these vehicles, what we see is they're going to a resting area, like there'd be parks somewhere for a period of time to see before they start trying to dismantle, or, you know, they're moving from location to location to get it to a place where they could, whether it be a chop shop, whether it be, and in storage units, or wherever we've seen it all, to then start shipping the vehicle or do a vin plate change.
And you'd be surprised how quick they're doing vin plate changes as well. I mean, it's crazy what we see today. But that's why the quicker this stuff is reported. And we, you know, work with law enforcement to recover, the probability of that vehicle coming back in one piece with minimal damage is improved. It's greatly increased. I mean, we see, you know, we've had recoveries. And this is, some of our recoveries have led us to 15, 16, 20 other vehicles that are parked here, right? That maybe weren't equipped with a technology or a second layer of protection, that LoJack recovery led them down to many other vehicles being recovered.
We see that all the time as well, which is, you know, and that's typically where you're going to see these rings, these step drains that are heavily involved. And, you know, they're shipping these cars again, that right out of the country, they're going. I mean, we had one out of a dealer out of a Chantilly, Virginia area, four cars stolen, one after the other after the other after the other. I want to ask you, so I want to change gears before we wrap up because I want to talk about the macro. I'd have to also imagine that you're pretty close to the car manufacturers and knowing where we trending as an industry when it comes to, you know, vehicle security and just, you know, mitigating theft, right? So, like, what are the trends on the horizon that you see from the manufacturer level with respect to vehicle security?
So with the manufacturer, right, their apps and their connected car technology that's installed, they're obviously always looking at ways to continue to improve. Here's what I'll say, and this is where a lot of the factory, you know, the factory installed technology is really to drive customer experience, right? Making sure that that customer experience and its feature rich in that regard, except as a whole other level. So, yes, they're looking at ways to provide and improve their technology. And we're also looking at ways to continue to partner with OEMs, right? Because that's what we pride ourselves in doing.
And that was one of the reasons that, you know, we, Solera, Logak by Solera, I made this investment to develop Logak for Law Enforcement, is because it's on our roadmap too, to partner with the manufacturers strategically to allow that telematics data to flow into our Logak for Law Enforcement app. And that's a big focus for us as we continue down this calendar year in really helping them and working as a partnership to them to help build that out as well. And I think, you know, every card manufacturer out there, it was continuously looking at ways to improve.
Again, it's that these septorings and these, the criminals that are out doing this, that's the first thing they're going after. So if they're ripping it out, it then becomes cumbersome, right? It's not a fault of the factory. It's that this is what we're up against. This is the battle that we have today. So it's what do we do and how do we all create together through the partnerships and development, create ways and strategies to continue to battle this, which will then again, stop not only vehicle crime, but other crimes that we're seeing that are being committed.
So prediction as we wrap up here, next five years, vehicle theft down or up, given all the attention that it's getting now. Down, that's the goal, down, right? Again, I think, you know, with the focus there and everyone's strategy and I believe that we will see that, but it's not gonna be something where people that will be able to make light of it, right? I think it's no matter what there's going to be some degree of vehicle theft, I don't think we'll ever see it be at zero, but I think having this situation being an all-time high, we will see that, you know, produce.
I love it. Melissa, hi on the CDG podcast. Melissa, thanks so much for coming on. This was super interesting. No, thank you so much for having us. It's an amazing experience and it's an honor to be here. Thank you, Yossi. All right, hope you enjoyed that episode. Please give the podcast a rating. Consider subscribing to the show and check the show notes for links to what we talked about. Thanks for tuning in. I'll see you guys next time.