Renting Tires – The Next Big Thing

Renting furniture, appliances, electronics and even tricked out fancy tire rims is nothing new. The industry has been around for many years now and continues to grow at a fast rate. But what about renting tires? Is that the next big thing for this market?

I’d have to say it already is. You may be surprised to know that the tire rental business is virtually exploding. Places like Rent-n-Roll and Rent-A-Tire, among others, are hurrying to open new stores due in part to demand from customers looking to rent new tires. So why has this suddenly become such a hot market? Why would anyone want to make a weekly payment on tires for their vehicle?

Why Rent Tires?

In a word…it’s all about money and the economy. With so many people struggling to try and keep their heads above water, if they can even find a job, paying $300-$800 for a new set of tires can be next to impossible.

Another big reason for the rise in tire rentals is the cost of the tires themselves. They’ve risen by some estimates as much as 40% since 2009. A large part of this is from the tariffs the U.S. placed on imported tires from China. Not only did that drive up prices on Chinese tires, but all tires because now tire makers weren’t competing against the cheaper ‘made in China’ tires.

What Are Your Options?

So what do you do when you’re looking at your car or truck with its bald tires and no money in the bank?

Until now your options were pretty much limited to either asking family or friends for a loan to buy new or used tires, put them on a credit card (if you even have one or have one that isn’t maxed out) or drive around with bald tires and put everyone around you in danger with a soon-to-be-happening blowout.

Enter the tire rental business. For around $30-$40 you can walk into a tire rental store and come out with a new set of tires on your vehicle. That’s like a breath of fresh air for anyone who disparately needs new tires and has very limited resources.

That’s the good news, so what about the bad news? Those new tires are going to cost you, and potentially cost you a lot! There’s no getting around that fact, especially if you make the minimum payments for the full term. Here’s why.

What’s The True Cost?

Let’s say you rent an average set of new all season tires for 18 months. After you get them installed, you’ll be making weekly payments of around $20, give or take a few dollars. Take that $20 and times it by 78 weeks. The result is that you are paying double to triple the amount you would have paid if you had just purchased the tires outright. That’s a tremendous amount of money. Of course, making more than the minimum payment or even paying them off as quickly as possible would be a smart solution to lowering the overall costs.

How About Used Tires?

I know that some folks will say, why don’t you just go and buy some used tires for around $30 a piece? There’s plenty of used tires around. Sounds like a solid idea right off the top of your head, but there are a lot of factors to consider with trying to buy used tires.

Finding a decent tire that still has enough tread to last for a while. Finding a set of 4 tires the same size is another issue. Having them mounted is another cost. Of course there is no warranty, so if one of the tires gives out 3 days down the road, you’re left in the same position again. Add to the fact that most people have no idea what to look for in a used tire and you can see how where a lot of problems come in to play.

Most everyone knows upfront that renting a set of tires is not the best. I don’t know of anyone who likes to pay triple the cost of any product, let alone tires. But when your back is against the wall and you’re faced with not being able to drive to work, or anywhere for that matter, you tend to do what you feel you have to do.

What’s The Future?

I don’t see the tire rental business going away anytime soon. With tire prices only going up and the realities of today’s economy, it’s hard to see things changing in the near future. I’d like to hear your thoughts. What do you think about renting tires? Are you already doing it? Please let us know in the comments section.