How to open a used tire shop


Guide to Starting a Used Tire Business

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With tons of car owners buying a new set of tires every day, many choose to purchase used tires. Not only are they 30% to 50% cheaper than new tires, but if you’re lucky, you can get used ones in great condition. Moreover, promoting the consumption of used tires can help reduce the amount of thrown-away rubber in landfills.

If you’re an entrepreneur looking to start a profitable and sustainable venture, a used tire shop is worth considering. Besides the obvious profits, owning this business can help reduce the impact of toxic materials that are harmful to human health and the environment. If you’re interested in starting a used tire shop, follow these steps.

1. Determine the startup costs

One major startup cost of starting a used tire business is the retail location. You should have an area for your retail space, a storage area for inventory, and a garage for servicing vehicles. Keep your overhead at a minimum by opting for a space in a low-rent district. The second primary area to look into is your equipment costs. Used high-quality machines and tools in good condition are better compared to new but lower-quality equipment.

Secondhand quality machines are more efficient to use, which means you can cut labor costs and time when installing tires or providing extra vehicle services. The third one is the used tires. Acquire a varied selection of both high-performance and low-profile tires. You can get used tires on retreading centers, junkyards, and other tire stores.

2. Acquire the equipment and tools

Many used tire shops choose to set up a garage to accommodate simple customer needs such as changing the old tires or simple maintenance checks. If you’re also looking to offer service and replacement, the first equipment to invest on is a tire changer. Consider the performance, type, and size of the tire changer.

There are particular tire changers designed for handling standard wheels up to 24 inches, low profile wheels, and heavy-duty wheels. While larger machines are more costly, they are more durable and versatile than others.

Next on the list is a two-post car lift, which is crucial for ensuring your safety when servicing cars or replacing wheels. Decide if you want a lift with a baseplate or overhead design. A baseplate design is preferred at low ceiling garages since it has a shorter construction.

On the other hand, this model makes it hard to use tools like transmission jacks or tall stand supports since it places a bigger plate below the car. If you prefer something with good support and stability, a vehicle lift with an overhead design is your best bet. It’s ideal for garages with limited space, providing you or your mechanics with great access to the cars during servicing.

Some other equipment you’ll need include a tire inflation system, an oil extractor, a wheel balancer, and a wheel alignment. One of the most important things that you do not want to overlook is sorting through the different business security systems and select the system that is best for your business premises so that your business is secured 24 hours a day.

3. Handpick your supplier

In opening a used tire shop, you’ll need to source different consumable supplies that are vital for your offered services. Some of these include patches, wheel weights, valves, lubricants, and chemicals. When sourcing these items, choose a supplier which sells them of top quality and has an impressive reputation in the industry.

At the same time, ensure they can take accountability for quality issues regarding the auto parts or tools you purchase from them. Your tire shop’s reputation is at stake when servicing your clients so be careful in picking your suppliers and the supplier. If you’re looking for a long-term partner, you’ll need to check on additional factors such as expertise in your target market, production capabilities, ethical and regulatory compliance, and ease of communication.

4. Create an advertising plan

Opening a local used tire shop requires good advertising tactics to boost profits. It’s just like any other business. Craft a plan that lists strategies suited for your tire business. Some of the basic ones include publishing print media ads for the grand opening, offering special discounts for every purchase, and providing pick-up and delivery services to local clients. You can also offer and promote bonus services like wheel balancing or give promotional gifts to loyal clients.

T-shirts or items with your tire shop’s name are a good brand-building tool. Besides locals, you can also broaden your customer base by selling tires online. Set up a website for your tire store or use e-commerce and social media platforms to sell your used tires and share your advocacy for saving the environment.

Starting a used tire shop won’t just help you generate good profits but also set an amazing example for promoting sustainability in the automotive industry. Help car owners avail of more affordable tires and take part in saving the environment by selling used tires. Take your time and plan your new business carefully using this guide.

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of SpeedwayMedia.com.

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How to Open a Used-Tire Shop

by Heather Skyler

Published on 2 Nov 2018

Everyone who drives will eventually need tires for their vehicle, and they can be quite expensive. Even the tires on a brand new car will eventually wear out. And many potential customers would rather go to an independent shop than a dealership or giant chain tire store. Consider filling this business niche with a used tire shop.

Starting a used tire company takes a lot of planning and several steps. As with any new business, you'll want to develop a business plan, find funding for your used tire shop and understand laws and safety regulations in your state.

Develop Your Business Plan

Every business should have a written business plan since it provides direction and attracts investors. A comprehensive business plan is the key to the success of your new used-tire shop. There are a lot of resources that can help you get started, and the Small Business Administration is the best place to begin.

Business plans should include:

  • An executive summary. This is your business explained in a succinct paragraph or two.
  • A company description. Here you can describe in greater detail what your company will do.
  • A market analysis. Provide research on your industry, market and competitors in the used tire industry.
  • The organization and management structure of your company.
  • More detail on the services or products you'll be offering.
  • Your plan to market your business and your sales strategy.
  • The amount of money your used tire shop will need for the next three-to-five years.
  • Financial projections for the next three-to-five years. 
  • An appendix where you can include a bio, resumé and permits.

Secure Funding for Your Used Tire Company

SBA Loan: You might qualify for a business loan guaranteed by the SBA, which was created with the goal of helping more small businesses secure financing. However, the SBA doesn’t provide loans; instead, it guarantees them. If a loan is given an SBA guarantee, lenders know the SBA believes in the soundness of the business. However, if a business defaults on an SBA loan, the SBA is responsible for paying back a certain percentage of the loan. Many new companies don't take advantage of getting backed by the SBA because the process can be tedious and time-consuming, but it is definitely worth the extra work.

Crowdfunding: In recent years, business funding has gotten a boost from such crowdsourcing platforms as Indiegogo and GoFundMe, which allow individuals to raise funds through social networks. The donors can give as little or as much as they want. Typically, the business offers some type of share, bonus or reward in return for the donation.

Local government help: There are sometimes loans or grants available for new businesses that are located within certain districts, such as a downtown revitalization area. Funding is also available for certain types of businesses. The great thing about getting this type of funding is that loan rates are low, and some might even be grants with no repayment required.

Buy Your Inventory

Starting with a large, varied selection of tires is smart. Include many sizes of car, truck, low-profile and high-performance tires. You can purchase tires from wholesalers, junkyards, tire shops and retreading centers.

You may need to spend a couple of thousand dollars to tens of thousands. It will depend on how much a space costs, what type of equipment you buy and how large an inventory you plan to open with.

Test Your Tires

It is always important to sell safe, good-quality tires. To that end, you must inspect all the tires you buy. Just one bad tire could kill your business, especially if someone is injured due to a flawed tire that causes an accident.

Make sure that you perform air tests to check for leaks, visually inspect tires for defects or previous repairs and inspect tread depth and overall wear.

Liability Versus Profit of Used Tires

Starting a used tire business can be quite profitable, particularly because you can sometimes acquire tires at zero cost. However, used tires come with liability.

Although there are many used tire places open, and it is a perfectly legal business, the law says it is your responsibility that the tire is in a safe condition when sold. Even if you're unaware of a defect at the time of the sale, by accepting payment, there is an expectation that the tire will provide safe handling and performance. The liability falls on the manufacturer with a brand new tire, except if the defect is caused during storage or the installation. Make sure you know all the laws governing a used tire business in your state and understand the importance of safety.

Hiring Employees

When you have a shop, the tires and the funding, it's time to hire a couple of employees. Always start slowly because most new businesses don't make a lot of money. It takes time to build a business, and you want to be sure you can pay your employees. Do background checks to make sure you've hired trustworthy workers, and train them well. Providing excellent customer service is important at a tire shop, as it is for any new or established business.

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Tire inspection steps:

Inspection

Before sale, each tire is visually inspected for obvious damage to the sidewall, tread and inner parts of the tire. If at this stage damage is found that can be repaired (punctures in the tread, small side punctures), then a free repair is made. This information is sent to the client.

Pressure test

If there is no obvious damage, then our experienced workers check the tire under pressure, collecting the tire on the disk. At this stage, the presence of hidden defects (leaks, cracks, punctures) is checked.

Repair

If defects are found that cannot be repaired or the repair entails a decrease in the reliability of the tire, such a tire is removed from sale and disposed of. If the damage is repairable, the customer is informed of this and, if agreed, the repair is carried out free of charge.

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Tire and tire labeling in 2022: the timing that is needed

Tire and tire labeling in 2022: the timing that is needed

On November 1, 2020, the mandatory marking of wheel tires and car tires began. We tell you how to work further, what equipment needs to be prepared, what to do with the leftovers, and how much violations cost.

No time to sort things out? Let's help!

  • From December 1, 2019 — registration of turnover participants in the Honest Sign system.
  • Starting November 1, 2020, manufacturers and importers mark all new products, wholesalers transmit information about their acceptance and sale, and retail registers sales and write-offs in the Fair Sign.
  • Until December 15, 2020 - marking of tires imported into the Russian Federation after November 1, 2020, but purchased before November 1, 2020.
  • From December 15, 2020 - the circulation of unmarked tires is prohibited.
  • Until March 1, 2021 - labeling of leftovers not sold before December 15, 2020.
  • Participants must register in the labeling system within 7 days from the day the need to turn tires arises.

New pneumatic tires and tyres:

  • for passenger cars;
  • for buses, trolleybuses and trucks;
  • for motorcycles;
  • rubber for agricultural or forestry vehicles and machines;
  • rubber for vehicles and machines used in construction, mining or industry.

Specific OKPD 2 and TN VED EAEU codes are shown in the table.

9020 for buses, trolleybuses and trucks new
Goods OKPD 2 TN VED EAEU
New tires and tires for passenger cars 11/22/11 4011 10 000 3 4011 10 000
Pneumatic tires for motorcycles, motorcycles, motorer, mopeds and ATVs 11/22/11.110 40 000 0
13/22/110 4011 20 100 0 4011 20 900 0
Pneumatic tires and tires for agricultural machinery; other new pneumatic tires and tires 11/22/14 4011 70 000 0 4011 80 000 0
Tires Rubber continuous or semi -ponomatic 11.11.15.120 4011 90 000 0

1.

Register to register in the system.

2.

Learn how to label products (for production and import): connect to labeling, purchase label printing equipment.


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