Let’s face it–the health of your tires is usually the last thing on your mind. However, the first time they’re done for, you may have to pay an arm and a leg to get new ones. This is especially true when there’s no public transportation to use in the interim to help give you some financial breathing room.
Fortunately, there are ways to finance the purchase of new tires, such as our in-house tire financing, to put new wheels on your vehicle and get back on the road without breaking the bank. Let’s learn how you can get financing for your busted tires.
What Is Tire Financing?
Do tire stores finance? Tire financing allows you to buy new tires and pay for them gradually instead of the entire cost upfront. Tire stores and manufacturers typically offer it in the form of a credit line, personal loan, or lease-to-own plan.
You must make monthly payments on your tire purchase when you get tire financing. These payments are usually interest-free for several months, after which you have to pay a specific annual percentage rate (APR).
What Are the Benefits of Financing With a Tire Agent?
Financing with a tire agent comes with several benefits, including:
- Professional advice: Tire agents can help you choose the best tires for your vehicle and driving needs.
- Better financing options: Agents know market rates and present various repayment plans that fit your requirements and budget. Plus, they can also help get discounts.
- Wider selection of tires: Tire agents work with multiple tire brands and suppliers, so they can offer more options to meet your specific needs.
Why Is Tire Financing Important?
It’s dangerous to drive with damaged or worn-out tires because they can result in accidents. By replacing your tires promptly, you can lower your collision risk.
If you make your payments on time, tire financing might also help you improve your credit score. This may help you qualify for better financing terms and other loans in the future.
With the help of financing, you can afford more expensive or higher-quality tires than you would have otherwise been able to.
What Are the Eligibility Criteria for Applying for Tire Financing?
Eligibility criteria will vary depending on which company you choose, but here are some general requirements most companies will insist on. These include:
- Age: You must be at least eighteen years old to be considered for most financing options.
- Credit score: Many financing programs will set a minimum credit score, usually between 600 and 650, to qualify for financing. However, the limits may not be the same for everyone.
- Income: To be eligible for financing, you must show proof of a certain minimum amount of income.
- Vehicle ownership: Certain tire financing schemes could demand that you own the vehicle that you need new tires for.
What if I Don’t Get Tire Financing?
Your tires require routine maintenance and replacement if you want to drive safely. If you don’t pay for new tires, you might be risking your life.
If you decide not to finance your tires, you’ll have to pay for them upfront. Because most tires range between $800 and over $1,000, you might not be able to afford them for several months.
What Is the Best Payment Method for Financing Tires?
Using a credit card to pay for tires is the best option, especially if you have a low-interest rate credit card or a promotional offer for 0% interest for a certain period. However, the interest fees on a credit card may rise if you have debt.
But if you don’t have a credit card, options such as NIFT, PayPal, personal loans, store credit, and cash payments are available to you.
What Is the Average Cost of Tire Financing?
The average cost of tire financing ranges from $97 to $400, not including taxes, fees, or installation. Depending on your credit score and other variables, tire credit cards may have interest rates of 15% to 25%, while personal loans may have interest rates of 6% to 36%.
Fortunately, tire retailers like Cheap Tires ASAP can offer financing that covers your purchase and zero APR if you pay within a set time. However, if you can’t pay within the specified time or your credit score is too low, your financing might have a 10% to 30% APR.
For more helpful tire financing information, be sure to check out our post on commercial tire financing.