Drivers Rent Tires as Prices Continue to Increase
Rent-a-tire companies throughout the country are seeing a boom in business, as tire prices continue to rise and consumers look to a monthly payment alternative.
As strange as it sounds, rent-a-tire companies are essentially rent-to-own policies, allowing buyers to purchase tires but pay monthly payments for them. But it comes at a high price – a couple in North Carolina purchased a set of Hankook tires for their Dodge Caravan, agreeing to pay $54.60 a month for 18 months, totalling out to $982. That’s almost three times the price to buy them outright.
Despite knowing that they’ll end up paying a lot more for the tires, Americans have resorted to renting tires to keep their cars on the road. Even worse, tire rental contracts have become so aggressive that dealers will have no problems repossessing the tires when payments aren’t being made and not even a bankruptcy filing will make the debt go away.
Companies including Rent-a-Wheel have turned to renting tires as the market continues to grow. Buyers with tight budgets aren’t looking for flashy wheels; just practical tires to get them to and from work. The problem is, not all of them can afford to pay the up-front costs, which is why tire rental is working despite it’s expensive bottom line.
[Source: LA Times]
Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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