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The price of new tires, like many goods, has increased in the past few years, especially due to supply chain issues, shipping costs, and global economic volatility. We’ve gathered a comprehensive list of why tire prices are so high in 2022, and helpful maintenance tips to help your tires last longer. Keep reading to learn more about the tire prices — and the driving factors behind them — in 2022.
Popular Tire Types
Rubber/Material Components
How Are Tires Priced?
How Much Do Tires Cost?
6 Reasons Why Tire Prices Are So High in 2022
Factors That Determine Tire Cost
Tire Maintenance Best Practices
Tips For Finding the Best Tire Price
New Tire FAQs
All-season
As the name suggests, all-season tires are versatile and suitable for warm and cool climates. They aren’t recommended for extreme weather conditions like snow and ice, because of the specific rubber components that the tire is made of. In temperatures below 40 degrees, the rubber compound hardens, which affects its traction. In weather over 80 degrees, they can quickly wear out and not provide the curve-hugging grip that warm weather tires have.
All-terrain
All-terrain tires have bigger treads than traditional all-season tires, and allow for on and off-roading capabilities. Because of the bigger tread, all-terrain tires can be slightly noisier than traditional tires.
Winter/Snow
Winter tires are manufactured for ice, snow, sleet, and other types of cold-weather precipitation. Winter tires are typically soft, with an intricate grooved tread pattern, made for holding compacted snow and creating traction; because of this, they can wear more easily in warm weather.
Summer Tires
Summer tires, sometimes referred to as ultra-high performance tires, are designed for warmer temperatures. They are manufactured with special tread patterns and rubber that allow for maximum traction and grip.
Tires can also be classified by size — the main sizes are light truck, SUV, and sedan.
All tires are made with rubber, but the rubber materials and components vary greatly from tire to tire. An average tire can contain over 100 separate components, including natural and synthetic rubber, petroleum, steel, nylon, and more. Different types of tires have different makeups to optimize performance.
Generally, a car tire can be broken down into the following components:
Tires are typically priced by tier, which is determined by the manufacturers and brand opening price point. Not all tire retailers categorize tires in the same way, but there are often similarities. Manufacturers also control the minimum price that retailers can sell their products for. This protects the brand’s reputation and value and keeps the market fair.
The general pricing guidelines for new tires are as follows:
Although these reasons why tire prices are so high are all intertwined, each is also a standalone reason. This is not a complete list of factors, but it gives you a view of the multiple factors that contribute to high tire prices.
COVID-19 Pandemic
Many of the below reasons why tire prices are so high in 2022 can be traced back to the COVID-19 pandemic. From labor shortages to supply chain delays, the tire industry (among many others) is still adjusting to bottlenecks and shutdowns that started in 2020.
Current Events
We will see a shortage in winter tires this upcoming season due to the Russian/Ukrainian war. Many of the prominent tire manufacturers for the name brand winter tires (Nokian for example) had their biggest plants in Russia, and due to global pressure have had to cease production and bring it back into European countries.
Manufacturing Oil Costs
Oil is used in the manufacturing of rubber, from creating synthetic rubbers to shaping and shipping. The entire manufacturing process of a single car tire can use around seven gallons of oil, and the process for a truck tire can average 22 gallons of oil.
Labor Shortage
As with many industries, there is a global labor shortage in the manufacturing industry. Almost 45% of manufacturing businesses have turned down businesses because of a lack of workers. Car manufacturers are getting creative, and partnering with local governments and community colleges to train and recruit talented workers.
Shipping Costs
90% of the world’s natural rubber comes from Asia and is shipped all over the world for production. As stated in an article in the Washington Post, “the rise in transportation costs began when essential businesses reopened after an initial shutdown of the economy in March 2020 to slow the spread of Covid. The increase in shipping rates, which later turned into a spike, was both a symptom of and a large contributor to higher prices.”
The article also states that customer demand, shipping delays, and bottlenecks in the supply chain are slowing down, and shipping costs are expected to decrease. “The sequential decline of imports is helping lower shipping prices and making supply chains more fluid, essentially unwinding an early cause of inflation.”
Supply Chain Delay
The tire industry was not exempt from the supply chain delay crisis. In March 2020, facilities shut down, ports were closed, and many production and manufacturing facilities were closed down or had limited capacity. Even today, many workers are unable to return to work due to complications or familial responsibilities due to COVID-19.
Although supply chain production is increasing post-shutdown, supply chains are still suffering. Studies have shown that inflation rates peak for a year after freight rates double, and can last up to 18 months. This means that shipping increases in 2021 may not fully be felt until 2022.
There are a variety of factors that contribute to the cost of a tire, starting from the rubber tipping to the sale of the manufactured tire — and everything in between. Some of the major considerations of tire pricing include:
Related reading: < How to Read A Tire Sidewall >
Tire maintenance can help prolong the life of your vehicle and result in fewer visits to the shop.
Drive safely: Speeding, fast turns, fast starts, and fast stops cause the rubber on your tires to quickly wear down.
Preventative measures: Keep your tires properly inflated and your wheels aligned.
Ongoing maintenance: Rotate your tires (along with an alignment) every 6,000 to 8,000 miles.
When purchasing tires from a shop, it’s important to inquire about ongoing maintenance packages.
So, how do you find the best price for your tires? Here are a few tips:
If you need help picking the right tires or are ready to purchase today, please reach out to one of our Certified Automotive Professionals or visit your local shop.
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