You may not be aware of this, but there’s a gold mine under your company’s cars and trucks…and using the term “gold mine” is actually an understatement. We’re talking about catalytic converters, which house metallic elements that are currently valued as much as 15% times the price of gold.
The catalytic converter is a device that reduces toxic emissions and has mandated for all U.S. cars and trucks since 1975. The theft of this part has been increasing over the years, but it went up dramatically in 2020 and has shown no signs of slowing down since.
Why do people steal catalytic converters?
Essentially, catalytic converter theft has been prevalent because it's considered an easy business. With car models that have ample ground clearance, a thief can easily access it, even without using a jack. In total, it only takes a couple of minutes to remove it from your vehicle.
Despite interventions to control the resale of used catalytic converters, police departments in many states have continued to report a surge in these crimes, with some cities predicting an increase in the coming years. These thefts occur on driveways, parking lots, and even garages.
However, the highest motivation, as referenced above, is the ever-escalating prices of the precious metals found in a catalytic converter - palladium, platinum, and rhodium. These metals are worth a fortune, with the current price per ounce hitting multiple times that of gold. For instance, palladium and rhodium are presently selling at an average of $2,250 and $21,900 per ounce, respectively.
Some factors that have led to the shot in the price of these precious metals include;
- Mounting pressure on automakers to implement toxic car emissions rules
- A booming black market for catalytic converters
- An increase in hybrid cars, which process less exhaust than traditional vehicles, leading to better preservation of the precious metals.
- The decline in the precious metals mining activities following the pandemic, which has caused a rise in demand.
Implications of Catalytic Converter Theft
The most frustrating thing about losing your catalytic converter to a car thief is that they resell it for several hundred dollars while repairing the car costs thousands of dollars. Unless you have a comprehensive insurance cover against theft covering car parts, you will be forced to finance the repair out of your pocket. This can significantly set you back financially. Again, even if you've insured your car parts and eventually get full compensation, you will still need to pay the deductible, which can be quite a sum.
Cost of Repairs
Replacing a catalytic converter is quite expensive, especially now that its components' prices are constantly rising. On average, you will have to part with at least $2,000.
Lost Revenue for Downtime
In addition to the hefty repair expenses, the hitch can significantly disrupt your business, inconveniencing both you and your clients. Not only will you be forced to postpone or cancel immediate engagements following the theft but repairing the car will take time. This can be disruptive, especially if you didn't have a reserve vehicle on your fleet.
How to Prevent Theft
Despite the ever-increasing risk of losing your catalytic converter to a random thief, taking precautions can go a long way in securing your fleet. One of the best ways of achieving this is by investing in security monitoring from a reputable provider. Here, your options may include among other solutions, a security plan customized to your business needs or a live video monitoring service to watch over your assets 24/7. This way, you can rest in peace, knowing your fleet is under close surveillance.
Conclusion
Even if the law enforcers predict a rise in catalytic converter theft due to the high demand for its precious components, all is not gloom. Taking extra precautions can go a long way in securing this risk-prone device to avoid business interruption and the consequent loss. Contact us at Titan to schedule a free security consultation.
