As we emerge from a global recession, we’re also facing higher inflation rates than what we saw after the last four global recessions.
What does inflation have to do with the cost of tires? Well, when we start seeing higher inflation rates, we tend to see a rise in costs across the board.
However, there are specific circumstances that are also leading to higher tire prices in 2021. Inflation isn’t the only culprit.
Read on to learn more about rising tire prices and what you can do about it.
The Cost of Raw Materials
In order to manufacture tires, companies need access to raw materials like natural rubber and carbon black. The cost of these raw materials is closely tied to the cost of oil prices, which have risen by 45% across the globe.
Some nations have also imposed tariffs on some of the countries responsible for producing the raw materials needed to manufacture tires. This may lead to significantly higher prices in certain nations, including the US.
The effects of the pandemic did not just include a recession. It also caused significant labor shortages in all countries. Rebuilding supply lines and steady transportation for goods such as tires has been a slow process.
Buyers should understand that these shortages of truck drivers will impact the cost of tires. It may also impact delivery times. This means that you may have to wait longer than usual after ordering new tires.
Changing Tire Needs
You are likely to notice that you’re paying more for tires if you’re driving a larger vehicle. For example, tires tend to cost more for SUVs and trucks than for standard four-door sedans.
Many drivers of larger vehicles hoped that tire costs would level out as these larger vehicles became more popular. So far, this has not been the case.
How to Get the Best Price For Tires in 2021
If you are in need of new tires, rising tire prices probably don’t make your wallet happy. Fortunately, there are a few ways that you can avoid astronomical prices when buying tires this year.
First of all, shop around. You may buy your tires from major tire manufacturers on a regular basis, but many of them were the first to raise prices.
Second of all, go local. Ordering tires online may come with hefty surcharges and taxes that you weren’t expecting. Plus, local tire suppliers like Ozzytyres Wheels often offer discounts and sales that online sellers can’t beat.
The High Cost of Tires May Be Here to Stay
In the wake of a recession and a global pandemic, we’re seeing rising costs on materials and goods that we need on a daily basis. The cost of tires is no exception, and those higher prices may stick around for several years.
Looking for ways to take care of your car and tires to avoid costly repairs? Take a look around for tips, tricks, and guides that will help you tackle routine maintenance on your own.