The economics of tires
You might not be surprised to find that price is a preeminent factor for consumers shopping for tires.
A study conducted by Consumer Reports surveyed buyers over the last 12 months and asked them about their overall satisfaction with 23 tire retail chains. Price was a motivating factor in a third of all purchases, as were thread life and brand trust.
OLD-FASHIONED BARGAINING
The survey found that some tire shoppers had no reservations about haggling with retailers for a better price. Fourteen percent tried it and, among those, 70% were successful getting a deal. The median savings was $96 per set of four tires.
Overall, consumers in the study paid about $196 per tire, up from $148 in a 2018 survey. The cost of installation rose also, from $22 to $24 per tire. Car dealerships charged the most for tire installation at $36. Sam’s Club charged the least, $14.
MICHELIN MEN
Michelin stood out in the Consumer Reports survey, by far the most purchased tire brand among Consumer Report members. Michelin tires often are more expensive, but the added cost can often be justified when comparing track performance and projected treadwear.
MEDIAN PRICE PER TIRE
Nokian, $215 / Pirelli, $206 / Michelin, $185 / Continental, $178 / /Bridgestone, $174 / BFGoodrich, $174 / Toyo, $173 / Yokohama, $157 / Goodyear, $151 / Hankook, $148 / Firestone, $145 / Cooper, $142
PERKS AND WARRANTY
In addition to cutting the purchase price, 81% of consumers received a free perk or service with the cost of purchasing or installing tires. Half received free tire balancing and almost as many received a free tire rotation. Others in the survey brought up tire mounting, tire disposal and road-hazard warranty.
The road-hazard warranty, that protection that provides prorated replacement for tires damaged before their traditional tread life has expired, is another common inducement. The survey showed 27% received one free of charge, while only one in five purchased a warranty with the tires. The percentage who got a free warranty varied by retailer.
“You may be able to get the coverage you want bundled in with the tires,” said Gene Petersen, who manages the Consumer Reports tire-testing program. “In some cases, such as when you get a great deal on tires themselves, but they don’t include a road-hazard warranty, it may be worth paying extra for that protection.”