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Tire Costs

Tires are a Depreciating Asset: 10 Ways to Slow the Rate of Depreciation

As a wear item, tires are a depreciating asset. Your job, as the fleet manager, is to slow the rate of depreciation. Replacement tires as a cost category are a fleet’s second-largest operating expense, exceeded only by fuel. By maximizing tire tread life, you lower per-mile costs, resulting in fewer premature removals and optimizing the condition of tire casings, allowing for multiple retreads.

Rising Tire Prices Take a Bite Out of Fleet Budgets

Tire industry experts foresee another round of tire price increases during calendar-year 2012. In the past, national account tire manufacturers have done their best to shield the fleet industry from price increases by holding prices for a 12-month period. Nowadays, there is concern that national account vendors will no longer be able to continue to absorb these cost increases.

The Forecast Is for Higher Tire Prices in 2012

The multiple price increases for replacement tires occurring year-to-date for calendar-year 2011 point to more increases on the horizon. Most tire industry experts foresee tire price hikes continuing for the balance of this calendar-year, with expectations of another round of pricing increases in calendar-year 2012. There are a variety of factors that will influence future tire price.

Tire & PM Costs Increase Car Maintenance

Increased cost of replacement tires and PM caused car maintenance expenses in 2007 to increase slightly higher than the prior year. Tire costs were up 4-7 percent, while PM expenses increased 10 percent. Other costs remained flat.

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