As a savvy shopper and retail industry analyst, I‘m always on the lookout for the best deals and the inside scoop on how major retailers operate. And when it comes to buying tires, one name consistently offers some of the lowest prices around: Walmart.
Walmart may be best known for its "everyday low prices" on things like groceries, clothing, and household goods, but the retail giant is also a major player in automotive services and tires. In fact, Walmart is now the fourth-largest tire retailer in the U.S., selling over 10 million tires per year according to Modern Tire Dealer.
But how does Walmart manage to sell tires so cheaply? Are their rock-bottom prices too good to be true, or a savvy way to save on a major car expense? After doing an in-depth analysis of Walmart‘s tire business model and offerings, I‘ve uncovered the key reasons why Walmart tires are so affordable—and what buyers need to know before snagging a set for themselves.
Walmart‘s Tire Prices Leave Competitors in the Dust
Let‘s start with the raw numbers. Walmart‘s tire prices aren‘t just cheap compared to specialty shops and dealerships—they‘re also significantly lower than many of the retailer‘s biggest competitors.
According to data from Consumer Reports, the average price of a moderately priced all-season tire at Walmart is just $102. That‘s a whopping 38% less than Costco, where the average is $165 per tire, and 29% below the $144 average at Sam‘s Club.
Here‘s a more detailed breakdown of how Walmart‘s median tire prices compare to other major retailers for a standard all-season tire:
| Retailer | Avg. Tire Price | % Cheaper Than Walmart |
|---|---|---|
| Walmart | $102 | N/A |
| Amazon | $114 | -12% |
| Discount Tire | $137 | -34% |
| Sam‘s Club | $144 | -41% |
| Goodyear | $149 | -46% |
| Costco | $165 | -62% |
Data based on Consumer Reports analysis of moderately-priced all-season tire prices. Percentages rounded to nearest whole number.
As you can see, Walmart handily beats out both online and brick-and-mortar rivals on base tire price, before even factoring in installation and other fees. For price-conscious shoppers, those savings can really add up—especially if you need multiple new tires.
Tires as a Gateway to Profitable Services
So how does Walmart get away with undercutting competitors by so much on tire prices? The key is that for Walmart, selling the actual tires is often less important than what comes next.
"Tires are what get customers in the door, but they‘re basically a loss leader for Walmart," explains Josh Byers, an automotive service consultant and former Walmart manager. "The real goal is to then sell you on more profitable services like mounting, balancing, alignments, brakes, oil changes, and more. That‘s where they make their money."
It‘s a classic retail strategy: entice customers with an unbeatable deal on a high-demand product, then upsell them on more profitable add-ons and services. And for tires, it works. Analysts estimate that while Walmart may only make a few dollars per tire sold, the average tire customer ends up spending $70-$100 on installation and other services.
In other words, Walmart is willing to take a hit on tire profits because they know they‘ll more than make it up on the back end. And by getting customers comfortable coming to Walmart for tires, they also have a chance to capture more of their overall auto service spending, from routine maintenance to larger repairs.
"Walmart‘s hope is that if you have a good experience buying tires from them, you‘ll keep coming back for your other car needs," says Byers. "They want to be your one-stop shop."
Leveraging Scale and Buying Power
Of course, even loss leaders have their limits. To make its tire strategy work, Walmart also leans heavily on its massive scale and buying power to drive down costs wherever possible.
One key way Walmart does this is by inking exclusive deals with major tire brands to carry special "value" lines in high volumes. For example, the Douglas all-season tire—one of Walmart‘s most popular offerings—is made by Goodyear specifically for the retailer. By promising to buy Douglas tires in bulk, Walmart can secure much lower wholesale prices than competitors.
"Walmart‘s size gives them a lot of negotiating leverage with suppliers," explains retail analyst Chelsea Gross of Gartner. "They can go to a tire maker and essentially say, ‘We want to buy X million units of this tire. What‘s the best price you can give us?‘ Manufacturers are often willing to cut Walmart a deal to access their huge customer base."
Walmart takes a similar approach with its in-house tire installation services. By using a standardized, no-frills installation model and relying mainly on entry-level technicians, the retailer is able to offer mounting and balancing for just $12-$15 per tire—significantly cheaper than most competitors.
"Walmart runs its Tire & Lube Express locations very lean," says Byers. "They‘re not spending a lot on overhead, which allows them to pass those savings on to customers."
Potential Trade-Offs of Cheaper Tires
For many shoppers, Walmart‘s unbeatable prices on tires can seem like a no-brainer. But as with most bargains, it‘s important to understand what you may be giving up to get that low sticker price.
One potential downside of Walmart‘s cheaper tire offerings is quality. While Walmart‘s exclusive tire lines are usually made by reputable brands, they‘re often a step down from those manufacturers‘ primary offerings in terms of durability, performance, and tread life.
"Walmart‘s tires will get the job done, but they‘re usually not the absolute best tires out there," says veteran tire tester Gene Petersen of Consumer Reports. "We find in our testing that some budget tires wear out faster, produce a harsher ride, and don‘t perform as well in snow or wet conditions as more premium options do."
That doesn‘t necessarily mean Walmart tires are unsafe or won‘t work for your needs. But shoppers should go in with realistic expectations and be prepared to replace cheaper tires a bit sooner than pricier models. On average, Walmart tires tend to last about 30,000 to 50,000 miles, while the best tires from other retailers may last 70,000 to 100,000 miles.
Another factor to consider is Walmart‘s relatively limited tire selection and sizes compared to specialty tire shops. While you can usually find common sizes for cars and SUVs, options for performance vehicles or offroad tires may be more limited.
"If you‘re looking for a specific brand or hard-to-find size, Walmart may not be the best bet," says Petersen. "They tend to focus on high-volume sizes that fit the most vehicles."
Is the Walmart Tire Buying Experience Right for You?
Zooming out, the decision of whether to buy tires from Walmart really depends on your priorities and preferences as a shopper.
If you‘re laser-focused on finding the lowest possible out-the-door price on tires and don‘t mind a more basic purchasing experience, Walmart is often unbeatable. Its low installation fees, lifetime balance and rotation, and solid road hazard warranty provide a strong overall value.
However, if you‘re looking for more personalized service, expert recommendations on the best tires for your specific vehicle and driving needs, or perks like mobile installation, Walmart may leave you wanting. And if you want the longest tread life and top performance, investing in pricier tires from a specialty retailer could pay off in the long run.
"When you buy tires from Walmart, you‘re getting a safe, wallet-friendly option for the broadest range of drivers," says Petersen. "But as with anything, you often get what you pay for. Walmart will get you rolling for less, but the best tires are often found elsewhere."
Tips for Maximizing Your Walmart Tire Purchase
If you do decide to buy tires from Walmart, these expert tips can help you get the best possible deal and experience:
- Always compare the total out-the-door price, not just the sticker price. Factor in installation fees, taxes, and any additional services.
- Look for Walmart‘s "Rollback" promotions, which can take 10-15% off select tire brands.
- Consider Walmart‘s Road Hazard Warranty ($10 per tire), which covers unforeseen flats and other damage.
- Check Walmart.com for potential savings. Walmart will match competitors‘ prices, even from online sellers.
- Read customer reviews of specific tires on Walmart.com to get a sense of real-world performance and durability.
- If you have an issue with your tires, work with Walmart‘s Tire & Lube Express team first. Escalate to a store manager if needed.
Ultimately, Walmart‘s cheap tire prices can be a major win for cost-conscious drivers. By understanding how the retailer is able to offer such low prices and what trade-offs may be involved, you can make an informed decision on whether Walmart tires are the right fit for your budget and needs.
