Mexican drug cartels are building fleets of stolen American rental vehicles, targeting premium SUVs and pickup trucks that can be used to transport drugs, evade law enforcement, and support armed operations, according to investigators and law enforcement officials.

The Jalisco New Generation Cartel and other Mexican criminal organizations have targeted rental agencies across the country, with California among the hardest-hit states. The California Highway Patrol estimates that approximately 2,000 vehicles stolen in the state end up in Mexico each year.

The vehicles sought by cartel operatives include Cadillac Escalades, BMW SUVs, Chevrolet Suburbans, Ford Raptors and Toyota pickup trucks. Some are reportedly modified into makeshift armored fighting vehicles, equipped with bullet-resistant steel plating, firing ports and gun mounts.

“Anything that can drive through tough terrain to get away from Border Patrol so they can move dope,” Los Angeles Police Department Sgt. Juvey Mejia said when describing the vehicles cartels seek.

Investigators say criminal groups use several methods to obtain the vehicles. In some cases, cartel operatives recruit people through social media to rent vehicles with legitimate identification before handing over the keys or leaving the cars at predetermined locations. Other operations rely on stolen identities to secure rentals.

California’s restrictions on GPS tracking have added another obstacle for rental companies attempting to recover stolen vehicles. Under the restrictions described by rental industry representatives, companies cannot activate tracking systems until a vehicle is overdue and they have contacted the renter, potentially giving thieves time to move the vehicles across the border.

“California allows criminals to take advantage of the fact that we are not allowed to see where the vehicle is until it’s too late,” said Sharky Laguana, owner of San Francisco-based Bandago Van Rentals.

The American Car Rental Association has warned that such restrictions contribute to millions of dollars in annual losses tied to vehicle theft. The delay between a vehicle disappearing and its reported theft can allow organized criminal networks to transport it far from its original location.

The problem is not limited to California. In Arizona, Phoenix police investigated the theft of at least 70 vehicles between July 2025 and June 2026. Two suspects were arrested in connection with an alleged operation to move stolen vehicles into Mexico, while others were sought.

Texas has also faced concerns about criminal groups exploiting insurance loopholes and weaknesses in vehicle recovery procedures. Lawmakers have sought changes aimed at preventing such schemes.

Authorities uncovered another major operation in Colorado in 2024 involving 190 stolen Ford F-150s and luxury SUVs valued at nearly $10 million. The vehicles were allegedly destined for the Sinaloa Cartel.

In the Texas border city of Laredo, Deputy Police Chief Timothy Tubbs reported a 50% increase in rental vehicle thefts, underscoring the potential consequences for communities along major routes into Mexico.

“These stolen vehicles empower the cartels,” Tubbs said. “It is another tool for them to continue their smuggling and continue their violence.”

The thefts provide criminal organizations with more than valuable vehicles. High-performance trucks and SUVs can help transport drugs, navigate difficult terrain and support armed confrontations, while delays in tracking and reporting can make it harder for authorities to intercept them before they cross the border.

The cases have raised questions about whether state restrictions, insurance rules and rental industry procedures are leaving gaps that organized criminal groups can exploit to strengthen their operations.