Breaking Down the Cost of Tire Replacement

What goes into the cost of tires? Besides the product cost, what goes into the total cost of tires? In a separate post, we explained car tire prices and why some tires cost more than others. In this post, we're breaking down the "hidden" factors that may show up on your invoice and surprise you when you shop for tires.

'Hidden' Cost of Replacing Tires

It's not just the retail price of a tire that you need to know before buying. Several other factors come into play when you see the out-the-door price.

Brand, tire style and size, safety ratings, warranties and more add to a tire's final cost. Here are some things to know.

What to ask when you shop for tires

When talking about a tire's retail price, generally speaking, the larger the vehicle, the more expensive the tires. That's because larger vehicles need sturdier tires that support more weight. It makes sense.

But the cost of the tire itself is just the beginning. You'll might also pay other fees, including labor cost to change the tire, which is to be expected. So, when you shop around to compare tire prices, be sure to ask about the total cost to replace the tires. Here are some that you might expect to see.

• Mounting fee – After purchasing tires, they must be mounted onto a wheel using special machinery. Yes, you most likely will have to pay the shop a fee to mount your new tires. How much does it cost to mount tires? The fee is typically folded in with the balancing fee, which is ... 
• Balancing fee – Some tire shops combine mounting and balancing into one price. Again, the rate depends on the shop you're at and the tires you purchase. Average cost to mount and balance a tire is around $22 per tire for mounting and balancing. So, four tires might cost around $88.
• TPMS – If your vehicle uses a tire pressure monitoring sensor for each tire, it will need to be replaced when you get new tires. Expect to pay around $40 per TPMS.
• Tire road hazard protection – Some tire shops offer this optional protection for a fee. Standard protection can cost roughly $32 per tire for two years of coverage. Plans can include flat fixes and replacements with no deductible. Mounting and balancing are typically included with the replacement.
• Environmental fee – This fee usually helps fund research and development on recycling old tires. Expect to pay about $2 per tire for this fee.
• Disposal fee – Most states charge a per tire fee for disposal when you purchase new ones. The rate is different in each state. For example, in Colorado, it's $1.50 per tire. But in North Dakota, it's $2 per tire. A chart on Wikipedia is updated with each state's disposal fee rate. 
• Excise tax – This is typically only applied to larger truck tires and is calculated by the tire's weight.
• Sales tax – Taxes are based on your ZIP code. For example, in Arizona, you'd pay a little over $64 in taxes for a set of four tires that cost $870. That's a little more than 7%.
• Shipping – If you order tires online, the tire company might charge a fee for shipping. Except for Tire Agent, where shipping is always free.

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These are typical expenses you can expect when you buy new tires. Let's add it all up.

True Costs of New Tires

Let's look at a popular tire and calculate what it will cost to purchase a set of four. We'll go with the Goodyear Assurance all-season 205/55R16. We'll use average costs for the fees described in the previous section. Here's how it breaks down:

The retail cost per tire is $135. That's a total of $540 for a set of four. Now let's add the fees.

To mount and balance all four tires, you're looking at $88. Let's add TPMS for each tire at a total of $160. Don't forget the environmental and disposal fees. Those add up to $16, depending on your state, of course. Standard tire road hazard protection for two years runs nearly $135 for all four tires. Sales tax calculated at 7% comes to $65. We'll save money and avoid shipping fees by ordering from Tire Agent.

Total cost: $1,004.

If that's causing panic, don't worry. You can save money by not adding TPMS or tire road hazard protection. If you skip those, the average cost of tires and installation is around $690.

But be sure to speak with a tire professional to make the best-informed decision. Good tires are one of the best ways to stay safe on the road, after all. Tire Agent offers several financing options, to help break the cost of tires over several smaller payments. 

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