Business Overview

Used tire businesses sell and install tires that have been previously driven on. Some businesses also offer tire repair services, but the sale of tires accounts for the majority of a business’ revenue.

The used tire industry is strong and growing. According to the Rubber Manufacturers Association (RMA), between 30 and 35 million used tires are sold annually. About 10 percent of drivers have these tires on at least one vehicle.

Who is this business right for?

Anyone who likes working on vehicles and enjoys working with their hands might be well-suited for running a used tire business. Having basic people skills is also helpful, as business owners must be able to sell tires to customers.

What happens during a typical day at a used tire business?

A typical day at a used tire business consists of:

  • Picking up used tires from nearby locations
  • Inspecting used tires for condition and quality
  • Selling used tires to customers
  • Installing used tires that customers purchase

Installing tires involves removing tires that are currently on a vehicle, and mounting and balancing the used tires that are purchased.

What is the target market?

The target market of a used tire business is anyone who owns a vehicle and wants to save money. All vehicles need tires, and many drivers are willing to consider used tires because they provide an excellent value.

How does a used tire business make money?

A used tire business makes money by selling used tires to customers. Most tires are sold individually, in pairs of two or in sets of four. Tire Business reports that the average sale at one business, Drakes Tire’s, is a pair. Sales at another business, Rob’s Used Tires, are evenly split between individuals, pairs and sets.

What is the growth potential for a used tire business?

Some used tire businesses focus on online sales in order to reach buyers across the country. Most, however, have one or two locations that serve a defined geographic area. Hooper’s Tire Outlet is a business that has two locations serving Upstate New York. BestUsedTires.com is an example of an online-based business.