How to Start a Used Tire Business | Full Step By Step Guide By Our Expert


Information presented on this web page is intended for informational and educational purposes only and is not meant to be taken as legal, financial, investment or tax advice. We do not accept any responsibility for any trading or investment related losses. Please review our disclaimer on before taking action based upon anything you read or see.

Used tire businesses are getting popular day by day. Mostly, such businesses deal with the selling and installation of the old, driven tires of vehicles. It’s a profitable business as many vehicles tend to select such driven tires for them. However, it’s not easy to step into this business. It needs deep research before getting started. So, learn how to start a used tire business before going for it in the market. 

The business of old-driven tires is catching the attention of the users towards itself for many reasons. According to the report by the rubber manufacturing association, about 30 to 35 million used tires are sold in the US annually. 

But starting any business needs deep and thorough market research. The same is in the case for the used tire business. You need extensive research before moving on. So we’ve researched a lot and figured out an easy procedure to start a used tire business. 

How to Start a Used Tire Business

How to Start a Used Tire Business

Here is a precise method to start your used tire business. You can follow these few steps to get started with your driven tires shop. 

Search the Market

There are fewer chances of success of such a business that is started without proper market research. All businesses need some research before getting started with them. So, digging the market is compulsory before taking the initiative.

The same is the case with the used tires business. You need to observe the business of the older businessmen. It will teach you a lot about the market. You’ll be able to estimate your business by looking at their business. So, go for deep market research before you start your used tire business. 

Make a Business Plan

There are more chances of success for a planned business than an unplanned one. Therefore, certain planning for any business is necessary as it will help you throughout your journey as a businessman. Also, the business plan helps you to know some hidden facts about your business. 

Try to write down the description of your business plan. It will act as a guide for you throughout your journey. Here are some important aspects that you should consider while planning your business. 

Cost of Your Business

The cost estimate is necessary as it will help you to collect the funds for your business. You’ll need funds for the following areas while you’re going to start such a business. 

  • For the building
  • Buy the essential equipment
  • Purchase the old, driven tires
  • Register your business
  • Hire workers

However, these are not fixed areas at every place. Your expenses may increase or decrease from place to place or according to the size of your business. So, look for the prices of the items mentioned above in the market and manage some extra funds than their cost. 

Location of Your Business

Another important aspect that’s necessary to consider while planning the business is the location. You need a place with enough room to store the tires and make a garage for installing the tires in the vehicles. Also, try to select such a place that’s easy to approach. So, look for any such location within your concerned market. 

Understand Your Target Market

The target market for the used tire business is any vehicle owner. So, first, look for potential customers in the market. Many people love to install used tires in their vehicles. So, give them a valuable service; they’ll build your value in the market. 

Decide Your Charges

Old-driven tires are less expensive than brand new ones. Therefore, such tires are usually available in the market at half price compared to the prices of new tires. However, it depends upon the condition of the tire. 

Despite the low prices, old tire businesses earn a handsome profit as they buy the tires in large numbers at a wholesale price. As a result, you can charge $15 to $45 more than your purchase rate for one tire. 

Decide the Name of Your Business

An attractive name is a key to the success of any business. So, choose a perfect name for your business carefully. 

Ideas to Improve the Business

When you’ve made a solid plan for your business, you’ll think about how you can improve it. This thinking will help you to increase the value of your business. 

Register Your Business

A legal business proves more beneficial than an illegal one. So, try to form your business into a legal entity. Here are the most popular legal ways of starting such a business. 

  • Sole proprietorship
  • Getting started with a registered business (partnership)
  • Limited liability Company (LLC)
  • Starting a corporation

When you’ve decided on your business type, the next step is to register your business for different taxes. So, manage to register your business to the legal state authorities. 

Manage Online Presence

The current pandemic situations of Covid-19 have restricted physical businesses. Physical activities have been cut short after the worst situations of this pandemic. People tend to do their most tasks with the help of technology. So, make sure that you’re socially present for your potential customers. 

Also, we’re living in the age of technology. Mostly, people try to purchase their products online or book their appointments for any task before they visit the shop. So, online presence is a key factor in the progress of any business. 

You can do this by creating a website for your business. Then, once you’ve put all the content to your business’s website, manage the essential SEO to bring it to the search engine. Finally, you should manage the online presence of your used tires business to offer all the facilities to your customers. 

Get a License for Your Business

Some countries issue permits and licenses for automobile maintenance shops while others don’t. If you live in a state where a permit is necessary for such a business, apply for your business license. Move according to the rules and regulations of your state to get a license. 

Promote Your Business

A kind and sincere attitude are necessary to promote any business. You can manage advertisements and other resources to promote your work. 

Moreover, be sincere with your customers. If you do so, they will also promote your business on your behalf. So, deal with your customers in a kind manner to win their hearts. Earn a reasonable profit that will not be more than market rates. This thing will also impress your customers. 

Get Started

When you have made all the essential arrangements to start your used tire business, you can move on to get started. Start providing your service to the customers. Gradually, you’ll learn how to deal with clients. Once you’ve started your journey, you’ll learn the market. You’ll gain experience with the time that will help you to improve your business. 

Read More: How to Start a Telecommunication Business.

Frequently Asked Questions

Is a used tire business profitable?

Yes, starting a used tire business is very beneficial as such a business earns more profit than brand new tires, moreover, if your offer a good service, people will love to visit your shop. Also, most vehicle owners like to install used tires in their vehicles due to cost-effectiveness. So, it’s a profitable business. 

How much does it cost to start a tire business?

Name of the ItemCost ($)
Franchise fee10,000
PCs for online presence5000
Office supply 500
Cost of equipment50,000
Inventory cost40,000
Training cost1000
Credit managements30,000

The above calculations show that you’ll need at least $161500 to start your capital of used tires. 

Can you make money with used tires?

Yes, used tires can prove very beneficial if you start this business with proper market research. Furthermore, these can earn a handsome profit for you if you learn the strategy of its purchase and sale. 

How do I start a successful tire business?

We’ve discussed a thorough procedure to start a used tire business. You can start your business by following the procedure mentioned above. 

What equipment do you need for a tire shop?

Here is a list of equipment that you shall have to purchase to start a tire shop

  • Tire changer machine
  • Wheel balancer machine
  • Car lifter
  • Alignment lift
  • Alignment equipment
  • Oil remover
  • Inflation equipment

Can you make money off used tires?

Yes, you can make money through used tires via two methods. 

  • By buying them in bulk and then sale them with margin
  • By managing their recycling. After recycling, you can easily sell them. 


Starting any business is not as easy as it sounds. It needs special attention to get started. You’ll have to dig into the market deeply before you step into the market. If you start any work in a hurry, you’ll undoubtedly face a remarkable loss. Used tire business is a popular business as it’s a requirement of each vehicle owner. 

So, one can earn a handsome profit from this business. But you need to learn about this before you take the initiative. We’ve elaborated a precise business to start a used tire business. You can easily follow the steps mentioned above to start your own business in this niche. 

error: Content is protected !!