How much does it cost to start a tow truck business?

• $60,000 - For a Reliable Used Tow Truck

• $15,000 - Annual Cost of Diesel Fuel

• $5,000 - for insurance If you need insurance, reach out to Wexford Insurance, they work with a lot of Tow Truck Businesses. wexfordins.com

• $200 - for Tow Truck DOT Registration

• $200 - for LLC or corporation registration

• TOTAL COST TO START: $80,400

• TOTAL COST USING FINANCING:

  • $15,000 - ​Down payment on tow truck

  • $500 - Down payment on insurance

  • $400 - for DOT and LLC

  • TOTAL: $20,400

​

How much a month does it cost to fuel up a tow truck?​

• $1,000-$1,500 a month = 350-400 gallons of diesel fuel a month

​

How much money can you make with a tow truck business?

• The average revenue per load for a tow truck is $75 - $125 per load

• The average number of loads a tow truck can haul a day is 6-7 tows.

• If you drive a tow truck 6 days a week you would have 42 tows a week.

  • Hauling 168 towing a week would make $4,200 a week on average.

• On a monthly basis, your tow truck business would make $16,800 a month

• On an annual basis, your tow truck business would make $202,000 a year

• As you scale your tow truck business, you can continue to make more money by buying more trucks with the expense of hiring a tow truck driver. 

 

Are Tow Truck Businesses Profitable?​​

• Yes, a single tow truck can make around $16,800 a month. With monthly expenses (loan, insurance, fuel, etc) of around $4,500-$5,500 a month a tow truck business can profit around $11,500-$12,000 a month.

• A tow truck business can profit around $135,000 - $140,000 a year with one tow truck.

​

Types of Tow Truck Businesses:

• Flatbed Tow Truck

• Hook and Chain Tow Truck

• Wheel-Lift Tow Truck​

• Boom Truck

• Integrated Tow Truck

​

Positives of a Tow Truck Business

• This Business is always needed. Cars will always be breaking down or wrecked on the side of the road.

• This business can be scaled. You can continue to add more tow trucks and grow your business.

 

How to Start a Tow Truck Business 

1. ​Save up money for down payments on a tow truck

2. Form your LLC with the Federal Government and Local Government

3. Obtain a DOT Number from the FMCSA

4. Purchase Insurance

5. Make connections with local police authorities, garages, create a website with SEO, tow truck companies, and tow brokers.

6. Run your business!

​