How much does it cost to start a tow truck business?
The tow truck business start up costs are higher than other business types, anywhere from $150,000 to over $1 million. This is due mostly to the initial investment in towing equipment.
How much does a typical tow truck cost?
The average cost to hire a tow truck service is $75 to $125. Most towing companies have a minimum charge of $50 for the first 5 to 10 miles, then $2 to $4 per mile after. Factors to consider in towing a car are distance, type of vehicle, and the time of day.
How much is a tow in Utah?
Maximum Non-Consent Non Police Generated Towing Rate. (1) The maximum rate for a “Light Duty” vehicle is $145 per tow. (2) The maximum rate for a “Medium Duty” vehicles is $240 per tow. (3) The maximum rate for a “Heavy Duty” vehicle is $300 per tow.
Is tow truck a good business?
Purchasing a towing license and tow truck in an urban area can cost you as much as $200,000 with no towing accounts in place. Overall, starting an automotive towing business can be a terrific and profitable business venture, providing a license can be obtained or purchased at a reasonable price.
How do I start a tow truck company?
If you’re ready to learn more, read on for how to start tow truck business in six steps.
- Step 1: Write your business plan.
- Step 2: Register your business.
- Step 3: Secure startup funding.
- Step 4: Obtain licenses, permits, and business insurance.
- Step 5: Promote your business.
- Step 6: Know your responsibilities as an employer.
Is there money in towing cars?
Nationwide, tow truck drivers make $13.30 per hour, which is a $27,664 salary, but this includes drivers who work for someone else. As a tow truck business owner, you’ll be able to retain all of your profits. Although you’ll want to make a profit, you can easily find other tow companies are undercutting your prices.
What do you need for a tow truck business?
When creating a business budget for a towing business, here are some recurring expenses and startup costs that you’ll want to account for:
- Licenses and permits.
- Purchasing tow truck(s)
- Tow truck insurance.
- Employee salaries.
- Business insurance.
- Marketing expenses.
- Vehicle maintenance.
- Gasoline.
Can you tow a car that is not taxed or insured?
Can you tow an uninsured car? When using a tow-bar the towed vehicle will be legally classed as a trailer, so provided your own car insurance policy includes cover for pulling a trailer (or you take out a standalone trailer insurance policy) the towed vehicle won’t need its own car insurance policy.