Why Are Walmart Tires So Cheap? 5 Surprising Reasons

With over 4,700 store locations across the United States, Walmart is the go-to destination for budget-conscious shoppers looking to save money on everything from groceries to car repairs. Many customers turn to Walmart‘s AutoCare Centers for affordable tire replacements and installations. But why exactly are Walmart‘s tire prices so inexpensive compared to other major retailers?

Here are 5 key reasons Walmart is able to keep their tire costs low:

1. Walmart Uses Tires as a Customer Draw

Industry experts estimate Walmart sells over 11 million tires per year – more than any other company in the US. And those cheap tires serve as a way to get customers into Walmart stores and auto shops. According to Walmart‘s 2021 annual report, the company‘s automotive department generated over $4 billion in sales.

While tires themselves generally have low profit margins, Walmart makes up for this through lucrative installation fees and by upselling customers on higher margin services like alignments, oil changes, and battery replacements. So those cheap $100 tires get people through the door spending money on more profitable services.

"Walmart utilizes its tires almost like a loss leader to drive additional higher-margin business in their auto centers," said Ryan Krcmarik, senior vice president of Summit General Capital Partners.

2. Walmart Has Exclusive Brands and Budget Models

To keep prices low, Walmart partners with major tire companies like Goodyear, Michelin, and Cooper to produce exclusive budget brands that can only be purchased at Walmart.

For example, the Douglas brand is manufactured by Goodyear specifically for sale at Walmart locations. Douglas tires average just $45 – $65 per tire, significantly cheaper than premium Goodyear models. However, independent testing shows Douglas tires underperform compared to top tire brands in wet braking, treadwear, and handling.

Other exclusive budget tires sold at Walmart include:

• Kelly Edge A/S from Goodyear
• Timeless Tour from Michelin
• Traction King from Cooper

3. Lower Quality Than Premium Tires

The adage "you get what you pay for" generally applies to Walmart‘s cheap tires. The exclusive brands sold at Walmart use cheaper materials and manufacturing processes compared to premium tire lines.

This translates to shorter treadlife warranties. For example, the Kelly Edge AS tires only come with a 45,000 mile treadwear warranty, whereas premium Kelly Edge A/S tires are warranted for 80,000 miles.

Independent tests also show most Walmart tires score lower in wet braking, hydroplaning resistance, and handling compared to top-rated tire models. So while Walmart tires will get the job done, you‘ll likely need to replace them sooner and may notice reduced grip and control in wet conditions.

4. Basic Installation with No Frills

Walmart is able to keep installation costs low by focusing on basic tire mounting and balancing services with limited extras or add-ons.

The average price for installing four new tires at Walmart is around $50-60 – considerably cheaper than installation at tire shops like Firestone or NTB. And Walmart techs are dedicated to cranking out as many tire installations as possible per day.

You also won‘t get extras like free tire rotations or inspections that are bundled at other tire shops as part of the installation price. As Ryan Krcmarik notes, "It‘s a very basic experience focused on high volume and keeping costs low, rather than trying to upsell you on additional services."

5. Limited Warranty Protection

Walmart‘s cheap tires usually only come with the basic manufacturer defect warranty unless customers pay extra for road hazard coverage. For example, the Douglas tires come with a standard 60-day manufacturing warranty.

Road hazard coverage starts at around $10 per tire at Walmart and covers repairs from potholes, nails, etc. By comparison, other retailers often include 1-3 years of free road hazard protection.

And good luck trying to return tires at Walmart once they‘ve been installed and used – the no return policy on used tires also helps keep Walmart‘s costs down. Limited warranties equal lower costs for Walmart.

The Bottom Line on Walmart Tires

While Walmart tires will get the job done, the brand‘s rock bottom pricing requires compromises on tire quality, features, and warranty protection compared to premium tire retailers. But for shoppers solely focused on affordability, Walmart remains one of the cheapest options for budget replacement tires.