The Administrative Challenges of Breaking Down Key Costs for Repossessors

Repossessors face significant administrative hurdles when it comes to cutting and programming keys, which involves multiple layers of costs and logistical challenges. Below, we outline the major cost factors associated with this process.

Key and Programming Costs

Cost of the Key – The price of the key itself varies widely depending on the vehicle make and model. If aftermarket keys are unavailable, OEM keys can be significantly more expensive. For example, some newer Hyundai and Kia keys have been on backorder for months and purchasing them from the secondary market can be significantly more expensive.
OEM Software Per VIN – Many OEMs charge a per-VIN fee for access to software required to program the key.
Annual OEM Software Subscriptions – Subscription fees for OEM software can be substantial and vary depending on the number of brands covered.
Programming Machine Annual Subscriptions – Key programming machines often require annual subscription fees to maintain compatibility with the latest vehicle models.
Per VIN Tokens from Some Programmers – Some programming devices require tokens for each VIN programmed, adding to the per-vehicle cost.
Time to Program– Programming a key for certain vehicles can take up to two hours due to the complex security measures manufacturers have implemented. For example, some newer Chevrolet models feature advanced immobilizer systems that require extensive programming procedures. These vehicles often have built-in security delays, such as mandatory wait times before the system allows programming to proceed. Additionally, the process may involve multiple steps, including retrieving and entering security codes, synchronizing the new key with the vehicle’s electronic control module (ECM), and ensuring proper communication between the transponder and the vehicle’s immobilizer. This extended programming time increases labor costs and can delay the repossession process, adding to the logistical challenges faced by locksmiths and Repossessors.
Cost of Key Cutting Machines – The expense of purchasing and maintaining key-cutting machines is another essential investment.
Cost of Programmers – Devices used to program transponders, remotes and proximity keys are costly and must be periodically updated.

Industry-Specific Fees

Key Codes from NASTF – The National Automotive Service Task Force (NASTF) provides key codes for a fee, necessary for certain vehicle brands.
Annual Fee to NASTF – To access key codes and security information, an annual membership fee is required.
PIN Codes from NASTF – Some vehicles require additional PIN codes, which involve separate fees.
Per VIN Fees to Wytech for Newer Mopar Vehicles – Newer Mopar vehicles require special authentication, increasing the per-vehicle cost.

Logistical and Operational Costs

Overnight Shipping Charges – In cases where keys must be procured urgently, shipping fees can be high.
Cost of Labor for an In-House Locksmith – Employing a locksmith involves wages, benefits, and training costs.
Cost of an Admin Employee to Break Down Costs – An administrative employee is needed to track, document, and allocate these costs accurately.
Cost to Obtain Special Order Keys – In cases where a key must be ordered, Repossessors may need to drive to pick it up or pay a third-party to procure it.
Test Keys Before Cutting the Original – To avoid expensive mistakes, test keys are often used to verify the correct key code before cutting the original key.
Calling Dealerships to Verify OEM Part Numbers – Miscommunication on key part numbers can lead to wasted keys that cannot be reused, necessitating extra verification efforts. Many vehicles have multiple options that look identical by button and FCC ID but the boards inside differ.
Inventory Management – Managing a key inventory incurs costs to ensure the repossessor has the correct keys available for cutting and programming vehicles promptly for the lender.
D1 Forms– NASTF requires D1 forms to be uploaded to their system for each code requested, a process that can be time-consuming.
Training Costs – Ensuring employees remain up to date with the latest programming techniques and security requirements requires ongoing investment in training. Over the past year, the automotive locksmith industry has faced the addition of new security parameters to modern keys, necessitating updated programmers and further training.

The process of cutting and programming a key for a repossessed vehicle is far from straightforward. Beyond the physical key itself, numerous fees, subscriptions, logistical considerations, and administrative efforts drive up costs.

Breaking down the cost of each individual key would place a significant burden on Repossessors, who are already struggling with limited staff and heavy workloads. This process requires meticulous tracking of various expenses, including key procurement, programming, software subscriptions, and administrative labor. Given their already demanding responsibilities, Repossessors may not have the time or resources to conduct detailed cost analyses for every key, making it an added challenge that could slow down operations and impact overall efficiency.