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Used Tires


Mario

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I recently picked up a tire machine and I am getting a balancer as well. In my area, we have a market of customers looking for used tires, I get asked weekly. I currently don't do ANY tires, but I am strongly considering stocking common sized used tires for older vehicles as these seem to be the customers generally asking for them. I believe it would also be a great opportunity to do brake & front end inspections while the tires are off the vehicle and upsell needed repairs.

 

Do any owners sell used tires and what are your sources for obtaining them (recyclers, resellers).

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My shop is in a working class neighborhood where used tires are in demand for a lot of individuals and families. Even the higher income individuals are still seeking deals for tires on seasonal wheels. Used tire shops are not a rarity around here, but most are run out of small buildings with tire removal done in the parking lot.

 

I bought the tire machine to do new tires on, but I was scoping out other shops a few days ago, and the new tire/light service shops are empty (Monroe, Midas, other independent light service shops), and the few shops doing used tires are packed. I know the used tire shops do not pay more than $5 a tire from the supplier, and sell them installed for $35-$45 for most cars, with larger truck tires obviously being more.

 

I know new tires are a better value, but the market in the area demands what the market in the area demands. I've been swamped all week so I have not had time to even think of searching for suppliers until I put up this post, but I am going to do some research on it hopefully in the middle of next week.

 

The kicker is, when I did speak to one NEW tire supplier, there is more room left for profit in a used tire install then on most new tire installs (based on local rates).

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  • 8 months later...

I’ve run a general repair shop for 35 years and became a small associate tire dealer about 5 years ago. We do not sell used tires for same reasons most of you have already listed. #1 used tires are a liability that sooner or later will bite you in the butt…….and believe me now days law suits abound. #2 like someone said a used tire customer is not going to allow you to do any other services nor will they likely be a repeat customer. #3 why compete with my own new tire sales? I do not begrudge anyone that wants to sell used tires and I understand there are lots of folks that need to save money the best they can....but I just don't think it fits my business model.

 

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I did not like doing tires because the capital I had to tie up was pretty high for a negligible return. I even used to tell my customers to buy the tires from tire rack and had them deliver to the shop.

 

I spoke to a good friend of mine and he suggested to work out a deal with a local tire warehouse. My guy carries the inventory and I mark up the tires 33%. It is working out pretty good so far.

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  • 3 weeks later...

It's fine to sell used tires, but we live in a world where liability is the magic word! Insurance companies hate the used tire industry, I've learned. We repair professional love the word practicality, tho, but we can't let the desire to be practical carry us into a problem situation.

 

We have to come to grips with the way the general public thinks about things like this. Just because you helped them out in a pinch doesn't say they can't sue you for something that is perceived to be your fault!

 

In my shop, we sell a few new tires. Also tire repairs and mounting and balancing the customer's used tires that they roll in. It's a service that we use to connect with existing and future customers.

 

My theory is that if I can keep busy and make a living doing mechanical repairs and servicing without the exposure of a used tire depot, why bother with it?

 

Regards,

Jonny

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I read the entire topic tonight and found a lot of opinion but little in the way of experience. I am sure a case can be made for liability in selling used tires but history proves that more lives have been taken and money judgements rendered where new tires that failed are the root of the case. I really don't understand the politics in the cases for a ban on used tires in Maryland, Florida, New York and Texas. I do know the legislation in Texas is more about the transportation of WASTE tires similar to those rules in most states and in Maryland the case was being made for the date of manufacture of a tire. Unfortunately, legislators have less experience with tires than auto shop owners who might be thinking about selling tires. When I started selling used tires they were made with Rayon cord and had a very short tread life. Nylon made a much stronger tire and doubled the mileage. The sidewall of a nylon bias ply tire could be very cracked from ozone exposure and continue to run for years but averaged about 30,000 miles total. As radials became more popular due to a smoother ride and longer mileage we learned that the sidewalls did not last after some aging began to crack the rubber. The six or seven years considered in those bills is not unreasonable for most radial tires but should not apply to all tires used on or off the highway. Some of the legislation being considered is directed at the repair of tires which I think expose a dealer to much greater liability. I sell repair material to my used tire dealer/customers and insist they take hands on training to properly repair a tire. I do not sell plugs despite my supplier insisting they can be a great time saver.

Someone mentioned a disclaimer in selling used tires and I want you to know my business has been built on a "no questions asked 30 day guarantee". I will not sell any product I can not stand behind.

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] My feeling is that people who are looking for used tires are not the best candidates to up sell.

Exactly my thought. And besides that, EVERY used tire is someone else's reject. The key question is why? I don't sell tires but I strongly discourage my customers from seeking rejects.

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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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