Generally, the warranty is priced at around 10 percent of the cost of the tire.
“Sometimes customers get leery of add-on sales,” said Clayton Snow of Clayton's Tire Pros in South Jordan, Utah, noting how retailers offer extended warranties on nearly every electronics product and appliance. “So sometimes there's the tendency to get leery of that…
“A lot of people buy extended warranties on their vehicles and a lot of people really are comfortable because they want that peace of mind. They buy insurance on a whole lot of other things and they want the peace of mind of knowing that they have protection on their tires.”
Mr. Snow said in his market, most of the tire retailers offer flat repairs, rotations and, to some extent, rebalancing as part of the tire sale without adding extra charges.
“Inherent in the sale is a commitment to free flats and rotations and frequently rebalancing. When that's inherent in the sale, it does make the sale of the add-on (warranty) a little bit tougher, to be honest.”
However, “if he's committing himself to doing all those extra things anyway, it also gives him the advantage that when his customer goes traveling or is somewhere besides his store, that they just pull out their paperwork and they are automatically covered and it's recognized that they're covered,” he said.