Are Michelin Tires At Costco The Same Quality As At Dealers?

Getting a good deal on tires at Costco can be easy if you’re only focused on price, but what about quality? Just look at those big outlet malls. Sure, they promise cheap prices on name-brand goods, but you’re actually getting what you pay for: Many companies produce low-cost, low-quality versions of their “real” retail products specifically for sale at outlet malls. So you may be spending less money, but you aren’t actually saving any.

Well, the good news is, that’s not an issue for Costco. Its Michelin tires have the same quality you’d get buying the same rubber at a fancy tire-and-wheel store. That’s because Costco is able to keep its prices down using two economic strategies.

The first is leveraging its size to get discounts from products’ manufacturers. For example, Michelin may have agreed to sell its tires to Costco for a lower price than to a local garage because it knows Costco will buy so many more of them. Remember, Michelin makes a lot more money selling 1,000 tires to Costco with a $1 profit per tire than it does selling 10 tires to a small mechanic at $5 profit.

Then there’s Costco’s own profit margins, which are exceedingly low. In fact, Costco’s profit margin on tires — and most other things it sells — simply isn’t that important for the bottom line. The retailer makes most of its money on membership fees.

There are a few advantages to getting your next set of Michelins from a dealership instead of going to Costco. A typical Toyota dealership, Universal Toyota of San Antonio, Texas, lists five reasons to skip an independent tire dealer, including the ability to get the exact right tires for your ride, which you can’t always do at Costco; another of Costco’s money-saving tactics is to only carry a limited inventory of tires that may not exactly match what your car came with.

Dealerships also offer some convenience benefits compared to Costco, like the ability to get new tires and some other services done at the same time. Costco can’t even help you out if you want to get an oil change with your new tires. (Though you can get your TPMS sensors replaced at Costco.) Dealership mechanics will usually give a more thorough inspection of other components while your car is up on the lift, too.

Got something else to do during your day, or merely prefer not to roam the store while your car is getting re-tired? You’re out of luck at Costco, while some dealerships can arrange loaner cars and/or have shuttle services that can get you where you want to go. As for dealer-suggested advantages for competitive pricing, price matching, and expert installation, well — that’s going to depend on the dealership.

Purchase a new set of Michelin tires at Costco and you’re rewarded with much more than world-class rubber from an official partner of the International Motor Sports Association/WeatherTech SportsCar Championship. At Costco, installation includes not only mounting the new tires, but also balancing them, putting on new stems, and inflating them with nitrogen. Nitrogen may not actually make that much difference, but it probably won’t hurt anything.

There’s a double-pronged approach to warranty coverage, highlighted by the Costco road hazard warranty. It covers a variety of road hazards for either 60 months or until the tire has “worn out.” That means it has less than 1.6 millimeters (2/32 of an inch) of tread remaining, regardless of how old the tire is. The second stage of warranty protection comes from the official Michelin coverage that boasts a 60-day satisfaction guarantee, three years of roadside assistance, a warranty for certain manufacturer defects, and a treadwear warranty.

Finally, Costco offers a handful of lifetime tire benefits. There are exceptions and disclaimers, but buying Michelins at Costco means you can get your tires rotated and balanced for the life of the tire, during which the retailer will perform inflation checks and repair flats as well.