Production costs driving tire prices up
July 31st, 2008 by River City Weekly
If winter roads will require you to replace your tires, now might be the most cost-effective time to make the purchase.
While local tire suppliers often see a quarterly increase in price from the manufacturers, the cost of producing tires is on the rise, which boosts tire prices more dramatically. Because the costs are influenced by the manufacturer price, local businesses can’t say how much the increase will be. But Dan Broadfoot, Wally’s Tire Factory manager, said tire prices have risen 25 percent already this year, and the beginning of July saw a 5 to 8 percent increase.
The price is driven by the cost of raw materials, such as petroleum and steel that go into rubber and tire production. Also, higher gas prices have multiplied the cost of transporting tires from manufacturers to suppliers.
“The manufacturers are raising the prices, so we’re having to do that to keep up,” Broadfoot said.
Local companies take a blow as prices go up. More customers ask to purchase used rather than new tires, and many are wearing tires out completely rather than replacing them when the tread is down to a quarter of an inch, Broadfoot said.
Fred and Wayne’s, which also services cars, is seeing more people keeping cars they would have traded and requesting more repair work instead, and they aren’t making more as tire prices swell, either.
“We’re just kind of like the gas stations; we don’t really have much of a choice. We’re not making any more money — or maybe even less than say five or six years ago on a tire,” manager Doc Gallagher said.
Although local suppliers don’t have any dates for when prices will increase again, Gallagher expects another increase after September’s end, and Broadfoot said now might be the time to buy tires for the winter.
“Everything continues to progressively go up. If you’re going to get them, the sooner the better,” he said.
Keeping tires in optimal condition can prolong their effectiveness and safety. Alignment is a big deal, especially in our area where potholes can be prevalent, Broadfoot said. Tires should be aligned once a year. Tire pressure should be checked once a month by following inflation-pressure guidelines on the doorjamb, fuel door, glove-box door or owner’s manual; correct tire pressure can also improve gas mileage. Tires should be rotated every 5,000 miles.
Many drivers don’t care for their tires as well as they could. According to a survey by the Rubber Manufacturers Association, 85 percent of drivers do not check their tire inflation pressure properly, despite the fact that properly inflated tires can make cars safer and more gas efficient. The survey also indicated 46 percent of drivers wrongly believe the correct inflation pressure is printed on the tire sidewall, 26 percent incorrectly believe the best time to check tires is when they are warm and only one out of three drivers can determine if their tires are bald.
Posted by Idaho Falls newspaper River City Weekly
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