The cost of renting tires from an auto dealership or Walmart has plummeted to just $2.99 a day, according to a new study by research company Numero Group.
The study was released Tuesday.
Numero analysts, including the chief economist for the firm, Richard A. Miller, said the trend is likely to continue.
“I’m not sure how fast this is going to change, but this is an indication of how far things have gone,” Miller said in an interview.
“If the trend continues, we’re looking at a lot more people looking to rent or buy from these retailers.”
Numero estimates the trend will continue in the coming years as people begin to look to save money on their own tires.
It’s an indicator that a growing number of consumers are finding alternatives to paying full retail prices for their tires.
In a report released last week, Numero said rental prices had been on a decline for the last two years.
A number of retailers, including Wal-Mart, Target and Home Depot, have said they are starting to rent their tires online.
“Retail is a business,” Miller told CNN.
“And retail prices are going to continue to drop, so people are going be looking for a different alternative.”
The study found that the average cost of a tire for a family of four on average has dropped from $5.65 per day in 2015 to $2 per day.
The average rent for a one-year lease for a two-wheeler dropped from an average of $1.60 to $1 per day, the report said.
The report showed that the percentage of rental customers who rent from a third party has decreased from 19 percent in 2015, to 13 percent in 2016 and 9 percent in 2017.
The percentage of people who rent to a third-party retailer has dropped in each year since 2007.
“We think the trend toward renting is probably going to accelerate in the next couple of years,” Miller, chief economist at Numero, said in a telephone interview.
Numeria said that the trend could continue for a few years, as more people start to look for alternatives.
“But if you have a tire that you have to buy, and you have the money, you can probably get by without it,” Miller added.
The decline in rental prices was particularly pronounced for newer models, as people were starting to see the benefits of buying tires on their phones.
In the United States, the average monthly cost of tires has fallen from $6.29 in 2011 to $4.99 in 2016, the Numeria report said, which is more than double the inflation rate.
But it’s still cheaper than paying full price.
The Numeria study found people were also willing to rent older tires.
For the last three years, the price of a three-year, 2-ton tire has dropped by $1, compared with a one year lease, the study found.
The price of an older model, with an estimated retail value of $10,000, fell from $3.98 per day to $3 per day for a three year lease.
The drop in prices was not just a result of newer models.
In some cases, older models that had been in the market for several years were being replaced by newer models that were priced much lower.
“What you have is a lot of people finding other things to do, including buying their own wheels,” Miller explained.
“You have to ask yourself, ‘What’s the value of the life I’m putting in the tire, and I don’t have any options for other things?'”
Miller said he expects the trend to continue into the future.
“It’s a big change in the way we look at a tire,” he said.
“People are going from buying from a dealership to renting, and then they’re going to be looking to sell their tires.”