How much does a Tire Shop cost to buy?

A typical Tire Shop sells for 2.2x to 3.6x annual revenue. With average revenue of $950K, expect to pay $2.1M to $3.4M.

How much does it cost to start a Tire Shop?

Startup costs range from $100K to $500K depending on location, equipment, and scale.

Physical

Tire Shop

Q: What are the profit margins for a Tire Shop?

The average profit margin for a Tire Shop is around 17%. Major costs are tire inventory, technician wages, rent, tire machines and alignment equipment, disposal fees, and local advertising. Gross margin improves with service mix and commercial-account penetration.

Low-glamour rubber sales with service bays that keep customers coming back every few years

Tire shops sell replacement tires, wheel services, alignments, and basic undercar maintenance. BizBuySell rolls tire shops into the broader auto-repair category, where median sold revenue is $819,431 and median owner earnings are $182,133, while market commentary on tire-shop deals commonly lands around 2x to 3.5x SDE. The surprising angle is that a shop can look retail on the surface but behave like a recurring-maintenance business once fleet, dealership, and alignment work are layered in.

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Avg Revenue

$950K

Profit Margin

17%

Acquisition Multiple

2.2x - 3.6x

Startup Cost

$100K - $500K

Difficulty

3/5

How It Works

Revenue comes from tire replacement, balancing, mounting, alignments, flat repairs, seasonal swaps, and related quick-service work. Better shops add commercial accounts, roadside partnerships, and used-tire value offerings to keep bays full and customer acquisition costs low.

Revenue Range

Low End

$400K

Typical

$950K

High End

$2.2M

Pros

+Essential spend with recurring replacement cycles
+Commercial and fleet accounts create repeat revenue
+Cross-sells into brakes, alignments, and maintenance raise ticket size
+Less diagnostic complexity than full mechanical repair shops

Cons

-Inventory management can tie up cash
-Margins are vulnerable if the business competes only on tire price
-Bay utilization and technician throughput still matter a lot

Best For

Operators who want automotive exposure with simpler workflows than a full repair garage

Operating Costs

Major costs are tire inventory, technician wages, rent, tire machines and alignment equipment, disposal fees, and local advertising. Gross margin improves with service mix and commercial-account penetration.