Tires

[A.J. Holst]

A recent conversation with a auto dealership owner was curious.

He said his tire distributors are anticipating a 25% +++ increase in tire cost.

Why?

Oil is a large component.

I'm sure in saving the environment, no one considered this impact.

[Erik88]

 

1 hour ago, A.J. Holst said:

He said his tire distributors are anticipating a 25% +++ increase in tire cost. Why?

Anytime I hear this sort of speculation I remind myself that it's just that. People love to throw out predictions and spread gossip about topics they really have no actual knowledge about. It's why a large percentage of the country still thinks the vaccine is more dangerous than COVID. I'm sure they read some compelling data on Facebook that makes it true. 

Jimbo heard from his cousin the price of tires is going up 10%. Jimbo then told his friend Curtis. Curtis posted on Facebook tire prices were going up 20%. Eventually it makes it's way up to 25%. It's like fish getting bigger each time you tell the story of catching it. 

According to Goodyear, they raised prices 5% this year. Michelin and Bridgestone did 8%. 

https://www.moderntiredealer.com/articles/31204-goodyear-consumer-tire-prices-are-on-their-way-up

 

Edited February 3, 2021 by Erik88

[peejman]

Oil prices may go up but demand has gone down. People drive a lot less miles with so many working from home.  Though once the world reopens, I expect vacations to get booked up fast. 

[Dirtshooter]

1 hour ago, Erik88 said:

Jimbo heard from his cousin the price of tires is going up 10%. Jimbo then told his friend Curtis. Curtis posted on Facebook tire prices were going up 20%. Eventually it makes it's way up to 25%. It's like fish getting bigger each time you tell the story of catching it.

Very similar to a joke that gets told and when you hear it later it isn't even remotely like the original version.

[DWARREN123]

When oil/gas go up a lot of other things will also go up due to petroleum being used in their manufacture. 

Most folks do not know the amount of petroleum used in creating other things.

[A.J. Holst]

When someone who owns multiple franchise dealerships mentions it, it catches my attention.

Buy hey, he's a Jimbo with idiot friends and suppliers.

I hope it is incorrect and speculation.

At least I don't have to learn Mandarin to be retrained to assemble 70% of the solar panels made in China.

I  have also made sacrifices and continue to make sacrifices to live well below my means, so I guess I  can afford to get gouged at the pump and pay the overall cost of goods and services impacted by increase oil prices.

[pop pop]

I need 8 heavy tires for my truck and RV. Been using Firestone TransForce 10 ply's.  Hope this is not true. 

Edited to add; Plans for long out west trip in June, July, and August. Going on new rubber L/w. 

Edited February 4, 2021 by pop pop

[Omega]

Just laid down $830ish for some Bridgestone ATs on my Taco yesterday, they said I saved over $100.  Much cheaper than the Goodyears they replaced, but as with everything else related to the oil industry I too think they will go up, it's just how much that is the question. 

[Dirtshooter]

well if the unelected potus has his way, they will have to use suns rays instead of oil to make things. And seeing how that technology isn't here yet, may need to stock up on some running shoes and comfortable hiking boots!!

[btq96r]

So, how much were tires back in early 2008 when gas prices were way higher than they are today?

[Chucktshoes]

Tire prices do fluctuate a bit with oil prices. I’ve seen it with the tire purchases I’ve made over the last several years for the semi. While not as fast as fuel prices, the impact is absolutely apparent when you buy tires like I do. 

[A.J. Holst]

8 hours ago, btq96r said:

So, how much were tires back in early 2008 when gas prices were way higher than they are today?

Great question, I'll do a little google searching

[Dirtshooter]

You realize that tires may seem expensive, but figure cost per mile and it is pretty cheap. If you get 40,000 miles on a set of $800 tires that is $0.02 per mile, just about what 1 primer used to cost. LOL

[MacGyver]

If I get 40,000 miles out of a set of tires, I'm gonna be mad.

[Erik88]

1 hour ago, MacGyver said:

If I get 40,000 miles out of a set of tires, I'm gonna be mad.

Same. I had a set of 60-70K Michelin tires that only lasted 40K. I filed a warranty claim with Michelin and got a prorated replacement set. Now these are dry rotted after 3 years. Even the tire salesman said he's having to constantly file claims for Michelin. I'll never buy another set of their tires again. 

 

[MacGyver]

I put a set of Goodyear Kevlar ATs on my Tacoma in November after the previous set last 65k miles with no issues at all.

Super happy with them. Great tire. Right at $800 OTD.  I think there was a rebate I sent in later - maybe $100?

[Chucktshoes]

I can usually get a couple hundred thousand miles per set of tires. That said, a set of tires runs me over $6k. 

[Erik88]

1 minute ago, Chucktshoes said:

I can usually get a couple hundred thousand miles per set of tires. That said, a set of tires runs me over $6k. 

I assume you are able to itemize your taxes and write off much of those expenses? I just determined I have to pay $5,000 this year. First time I've ever had to pay.  I about fell out of my chair when Turbotax finished calculating.  

[Chucktshoes]

6 minutes ago, Erik88 said:

I assume you are able to itemize your taxes and write off much of those expenses? I just determined I have to pay $5,000 this year. First time I've ever had to pay.  I about fell out of my chair when Turbotax finished calculating.  

Yeah, those expenses get written off. 

[Lumber_Jack]

8 minutes ago, Erik88 said:

I assume you are able to itemize your taxes and write off much of those expenses? I just determined I have to pay $5,000 this year. First time I've ever had to pay.  I about fell out of my chair when Turbotax finished calculating.  

what happened?  Just an jump in income bracket? Its happened to me before.  We moved to Knoxville got new jobs and pay rates, ended up owing several thousand come tax time.  Bottom line standard withholdings will be woefully short as your income increases.  

anyway back to speculation on tire prices

[A.J. Holst]

Routine rotation was the light bulb for me to get the most out of a set.

Currently have 40k (new on vehicle when I bought) on a set of Kuhmo Crugen HP71s (235/50R19 V-rated) sitting at 6/32.

Quiet, excellent traction and grip, more the adequate for my off pavement adventures and highway cruising.

I am still amazed at the improvement in ride after each rotation.

On to speculation, searching historical prices is not a simple task.

I did discover the tire market has declined over the last 3 years.

 If oil prices impact tire production and if people are driving less due to price at the pump and ability to work in a remote environment,  then demand could drop more.

All those factors could impact the mfg-ers cost and need to increase price to maintain margins.

I haven't purchased tires in over 6 years, but it seems a decent, known name brand, standard size set for an SUV is $175-$225 per plus mount/balance/disposal.

Edited February 5, 2021 by A.J. Holst

[A.J. Holst]

2 hours ago, MacGyver said:

If I get 40,000 miles out of a set of tires, I'm gonna be mad.

Those tires are for your garage kept, street legal race / drift car...

[Omega]

4 hours ago, Dirtshooter said:

You realize that tires may seem expensive, but figure cost per mile and it is pretty cheap. If you get 40,000 miles on a set of $800 tires that is $0.02 per mile, just about what 1 primer used to cost. LOL

Mine were 60k mile tires, I have just over 100K on my 2010 truck, and this is now the third set, original plus 2.  I prefer not to think in a per mile method, it's like watching the wheel spin on your electric meter, and feeling the wallet get lighter.

[Erik88]

34 minutes ago, Lumber_Jack said:

Just an jump in income bracket? Its happened to me before.

That's essentially what happened. My wife basically doubled her income last year but we only paid in an additional $1,500 in taxes over the previous year. I assumed the payroll software would account for this but apparently not. Prior to this, we had it just about perfect where we got back a very small amount. I'm modifying our W4's to have additional money taken out each paycheck. It was a good life lesson I guess.

[A.J. Holst]

6 minutes ago, Erik88 said:

That's essentially what happened. My wife basically doubled her income last year but we only paid in an additional $1,500 in taxes over the previous year. I assumed the payroll software would account for this but apparently not. Prior to this, we had it just about perfect where we got back a very small amount. I'm modifying our W4's to have additional money taken out each paycheck. It was a good life lesson I guess.

If we're within $1000, I call it good.

They're not holding too much of my money and anything I have to pay, that money is in my control.

Regarding new and shifting tax brackets; 3 year ago, our gross income increased about $4000, our tax burden increased about $3600 YoY.

Not much incentive to make that extra money...but hey, we rich folks are fortunate and greedy.