Sunday, June 9, 2013

A new industry - Tire rentals for the cash strapped and credit deficient

A sad commentary on the state of affairs in the U.S. when renting tires is becoming a booming business.  Families who cannot afford to pay for new tires are renting them, often at double or triple the cost.

Florence Cherry, a 57 year old nurse and her prison guard husband of North Carolina pay $54.60 a month to Rent-N-Roll for tires to their 15 year old Dodge Caravan.  If nothing changes, they'll rent these 4 basic Hankook tires for 18 months which will cost them $982, triple what Wal-Mart sells them for.  A nurse and prison guard must resort to this for basic transportation??

Rising oil and natural rubber prices have increased the cost of car tires by 57% since 2006.  That, coupled with declining household income since 2009 and damaged household credit has reduced the consumers' ability to purchase big ticket items.  5 years ago, 27% of American households didn't qualify for credit cards.    That number has since risen to 35%.  Over a third of U.S. households now do not have access to credit cards.  Not too long ago, credit cards were offered to dead people and dogs - and sometimes to dead dogs!

Source:  L.A. Times, "High prices are driving more motorists to rent tires", June 8, 2013


http://www.rnrez.com/



No comments:

Post a Comment