Tire Fee

[Richard]

$2.00 per tire to pay state 'fees' (The state charges $1 per tire, the other $1 is to cover costs of keeping the log and reporting to the state) not charged on vehicles owned by the dealership or warranty; $2.00 per tire for disposal (cost is $1.50 per tire).

Not making any real profit at it, but making sure it doesn't cost any money.

[bmwPM]

My understanding is that the Tire Distributor should not be charging the Dealership a tire fee: the end user of the tire (your customer) pays the fee. A portion of the fee is retained by the Dealership for administrative purposes and another portion goes to the State. Disposal fees are charged to the customer at the Dealerships discretion and are not state regulated. If you're lucky you can find someone licensed to haul tires away for free. That's the way it works in California. Our State fees are $1.75/tire and disposal is $3.00/tire.

[OLDPARTSGUY]

General Motors charges us the .80/tire as well as the tire distributor. They(GM) claim it is a state required charge. I believe it is just another revenue generator that gives the state money to spend on something else. Just like they do with lottery,gas tax money etc that supposed to go to road improvements etc..

Its all a game

[tjsmith]

In Alabama-$1.00

[bmwPM]

If GM charges a tire fee and the Distributor charges a tire fee and you charge your customer a tire fee then at least 2 tire fees are being charged on the same tire (depending on the circumstances). It's the same theory as sales tax ...the end user of the product pays the tax. I'd check your state regulations (business mgr should be able to help with this) and then challenge GM and your Distributor on all the excessive taxation. You are right...it is all a game.