15/04/2011: How much will you pay for the cheapest tyres?
Motorists wanting to have the cheapest tyres fitted are likely to suffer from price increases caused in part by supply shortages due to last winter’s heavy demand for winter tyres and in part by increasing new car sales. Another problem for motorists who want to have the cheapest tyres fitted is that factory closures will mean that the availability of even the cheapest tyres for the replacement market is likely to be limited. Indeed, the supply situation is worsening, with many tyre retailers and wholesalers operating on significantly reduced stock levels and even running out of some sizes.
In many ways, the economic downturn was good news if you wanted to have the cheapest tyres fitted but now that markets are returning to growth can you expect the good news to continue? Sadly you cannot. Because if you are on the lookout to have the cheapest tyres fitted, leading market commentators have been warning that ‘substantial’ price increases are on their way; along with possible shortages of the most popular sizes. All this means price increases, so having the cheapest tyres fitted may soon become a lot more expensive.
Oddly enough, this will affect those wanting to have the cheapest tyres fitted as much as or more than those who choose premium brands. This is because motorists wanting to have the cheapest tyres fitted usually buy inexpensive brands - often imported from the Far East - and these are more affected by increases in raw materials and distribution costs. The laws of supply and demand will also inevitably mean price rises for those who want to have the cheapest tyres fitted. This is because retailers will be forced to increase prices to maintain their margins so the cost of having even the cheapest tyres fitted will go up too.
So what’s the outlook for the average motorist wanting to have the cheapest tyres fitted? Well the truth is that whilst there is no need to panic, prices are likely to increase for some time and there may well be shortages; especially in the more popular sizes. The current unrest in the Middle East is almost certain to affect the prices of petroleum-based products, many of which are used in the manufacture of tyres. On top of this, rising fuel prices will drive up costs in another vicious circle. The best advice therefore is to start looking now for the cheapest tyres and have them fitted soon.