Tariffs, rare earth bottlenecks, and global trade shifts are shrinking auto inventory and making high-value targets out of dealership lots. There’s no denying that auto dealerships are navigating a volatile economic moment, with uncertainty taking its toll on the industry, including:
- Declining Vehicle Inventory – According to Cox Automotive, new-vehicle inventory fell 7.4% from April to May. Another report says three-quarter fewer cars were shipped to the U.S. this May than last.
- Rare elements shortage – Reuters reports that automakers are in “full panic” as China curbs rare earth exports, which global automakers fear could throw the industry into a full supply crisis. Production shifts have already taken effect in Europe, with U.S. manufacturers “warning of imminent cutback,” according to CBT News.
- Steel prices rising – Now that tariffs on steel have doubled from 25% to 50%, one economist predicts that the average $800 worth of steel in each vehicle will cost an additional $400, contributing to general price hikes across the board, according to CBS News.
With no clear resolution in sight, the supply strain and tariff uncertainty may worsen before it improves. Although the full impact of new tariffs is unclear, one thing is certain: inventory is slumping, and what remains on car lots is becoming more valuable, just as it becomes more vulnerable.
Inventory Scarcity Means Higher Stakes for Dealerships
When inventory is aplenty, loss is a nuisance. When inventory is scarce, loss can be catastrophic. With uncertainty on the horizon for car dealerships, the remaining inventory becomes a higher-value target for thieves looking for bigger pay-outs.
Given the effects of tariffs and the rare-earths export restrictions, every vehicle and pricey part, from catalytic converters to rims and electronics, becomes more expensive to insure, more difficult to repair, and much harder to replace, leaving the financial burden on your business. With most car dealerships storing their inventory in open lots, physical security gaps can create opportunity for thieves.
In times of economic unpredictability, crime tends to follow in the footsteps of opportunity. A leaner car lot becomes a more fruitful target. Thieves may take entire vehicles, valuable parts, or catalytic converters.
Many times, traditional security systems work in hindsight: reviewing footage, investigating after the crime, or waiting for alerts once the crime has been committed. That kind of response is never good enough – especially in this economic climate.
Unpredictable Moments Call for Proactive Security
At Pro-Vigil, we prioritize a layered, real-time approach to security. Our Remote Video Monitoring (RVM) solutions combine AI-powered technology with human oversight to detect threats as they arrive and stop crimes before they happen.
Our AI-powered surveillance provides a 24/7 remote video monitoring companion that can detect and identify unusual behavior. When a potential threat is identified, audio and visual deterrents are automatically triggered, causing 97% of intruders to flee the premises.
Pro-Vigil’s system doesn’t just watch, it actively prevents loss and stops crimes before they’re committed. Nearly 9,000 crimes have been prevented in 2025 alone.
The Bottom Line
Uncertainty has underscored the economic outlook of the past few months. Some experts in the automotive industry believe the full effect of the tariffs won’t come into clear focus until 2026, meaning ambiguity will reign in the coming months. With the rare earth bottleneck now delaying production, no one can predict how long supply chain delays will last.
But you can prepare your dealership to weather the storm.
At a time when inventory is slumping, security becomes a critical investment. Pro-Vigil helps protect your lot, your inventory, and your peace of mind, so that you can keep moving forward, despite the uncertainty of what lies ahead. Ready to protect your auto lot? Let’s work together and help you stay protected during volatile times.
