What You Need to Know About Tire Financing

A loan for the purpose of purchasing tires is sometimes called a tire loan, commercial tire loan, or vehicle tire loan. The purpose of this type of financing is to allow a business or organization to purchase tires that they will then use on a fleet of vehicles. This can be used in place of a bank loan, which might require more paperwork and take longer to approve. By financing the tires with a third-party lender, it’s possible to get the tires that you need without going through the hassle or waiting period of traditional financing.

Tire financing works much like any other type of business or vehicle loan. The borrower pays interest on the amount borrowed and repays the principal at the end of the term. Interest rates are typically higher than they would be on personal loans, because there’s a greater risk that the debtor may default. Because of this possibility, you may want to include additional fees if your company falls behind on payments or goes out of business before paying off the balance.

What Are the Dangers of Not Changing Old Tires?

Hydroplaning

Hydroplaning is dangerous and can happen even in light rain. The wear caused by repetitive braking can cause tires to wear unevenly and develop small cracks that can become large enough to allow water to get in. Once water gets inside the tire, it causes the tire tread to flex excessively and scrub against the road, resulting in the hydroplaning.

Failure to steer properly

If you drive on a worn-out tire, you might not steer properly in an emergency situation. If your car is moving at high speed, the resulting loss of control could lead to a crash. This type of accident could result in property damage, injury to passengers, or death.

Overheating concerns

Incorrect tire pressure can cause a variety of problems for drivers, but the most critical aspect is that it can cause the tires to overheat. This can be just as dangerous as driving on a flat tire. Overheating can lead to tread separation and blowouts, which may result in loss of vehicle control.

Loss of traction

Uncontrollable skidding or drifting (loss of traction) due to loss of tread depth. This is particularly dangerous when driving on wet surfaces, such as wet roads or during rainy weather.

Tires with tread depth below 2/32″ (1 mm) should be replaced immediately. Tires with tread depth below 4/32″ (5 mm) should be inspected at least every six months for signs of wear and tear that could lead to failure. The inspection should include checking tread depth and visual inspection for deep cuts, bulges or other damage that can cause a blowout while driving. 

Exposure to chemicals such as gasoline, de-icing salts, cleaning products, battery acid or other hazardous materials can reduce the life expectancy of a tire.

Why Is Tire Financing Important?

You won’t require credit checks

Discount tire financing is important because it allows you to purchase tires without a credit check. Some may question whether or not that is fair, but many consumers have poor credit scores for one reason or another. Most of those people probably don’t even know they are in the bad graces of their lenders, and tire financing can help them get into the market for new tires regardless.

Helps save money

Tire financing is a simple concept. When you finance your tires, you pay a small amount upfront and then make payments over time. This can be particularly useful for individuals who want to buy larger tires or tires with custom treads but don’t want to spend all their money in one shot.

If you’re looking into tire financing, it’s important to keep in mind that, when your payment is due, the total amount due will be due before the tires are installed on your vehicle. This means that if you’ve made payments on time and are ready to have your tires installed, you can expect to be able to get them mounted right away with little wait time.

Favorable interest rates

In addition, when you finance your tires through a reputable company, they will often offer interest rates and terms that are more favorable than what you would receive if you purchased them outright. By signing up for this service, you won’t have to worry about having the money saved up at the end of the month or having to put off getting new tires because of a lack of funds available for a traditional purchase.

Key Takeaway

Tires are an essential part of the vehicle, both for safety and comfort. Businesses need to have their tires properly inflated in order to safely perform their jobs. When a tire gets damaged, or needs to be replaced, it can make a huge difference in how productive that business can be. By taking advantage of auto financing options, businesses can ensure that their vehicles are equipped with top quality tires at all times.