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]