# Road hazard warranty

A term used when buying tire shop.

A replacement promise sold with the tire, which books revenue now and owes work later.

It is high-margin at the register and it is a liability you inherit, because the tires under those promises are on cars that will come back to your bays. Ask how many are in force, what the claim rate has been, and whether the money was ever set aside. Most shops book the whole fee as revenue in the month it is sold and carry no reserve at all against the replacements still owed.

Part of: Buying a Tire Shop (https://searchspheresource.com/guides/buying-a-tire-shop)

Source: https://searchspheresource.com/guides/buying-a-tire-shop/terms/road-hazard-warranty
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt