Quick Answer: How Much Can You Make Owning A Tow Truck?

How much do tow trucks charge?

Price estimates for different types of vehiclesType of vehicleAverage costCar$95 +$3.50 per kilometreMotorbike$80 + $1 per kilometreHeavy vehicleAdditional 20 – 25% moreGeneral tow rates$90 – $150.

How much do independent tow truck drivers make?

As of Jan 8, 2021, the average annual pay for a Tow Truck Owner in the United States is $88,156 a year. Just in case you need a simple salary calculator, that works out to be approximately $42.38 an hour. This is the equivalent of $1,695/week or $7,346/month.

How often is a tow truck driver killed?

According to the Bureau of Labor Statistics, accidents are the leading cause of death for tow truck drivers. Experts estimate a rate of almost 43 deaths per 100,000 workers. For all other industries, that number is only about three.

How many tow operators died in 2020?

Statistics by the CDC show it’s one of the most deadly jobs in the country with 191 tow truck drivers nationwide being killed in the span of five years. “We’ve been calculating, so far in 2020 five operators have lost their life within the past 10 days.

How do I start a successful towing business?

7 tips for running a successful tow truck businessPut safety first. Always. … Have safety policies. … Be careful when you’re hiring tow truck drivers. … Train your drivers. … Set up a pre-trip vehicle inspection procedure. … Establish a preventive maintenance program. … Get the right tow truck insurance for your business.

How many hours do tow truck drivers work?

Often times, tow truck drivers put in very long hours – often working on-call hours and at all times of the night, as these service companies operate 24/7. Many times, tow truck drivers work in excess of 40 hours a week.

How much do AAA tow truck drivers make?

American Automobile Association (AAA) Tow Truck Driver Hourly Pay. The typical American Automobile Association (AAA) Tow Truck Driver makes $15 per hour. Tow Truck Driver hourly pay at American Automobile Association (AAA) can range from $12 – $20.

Is buying a tow truck a good investment?

The towing industry is only a good business for the OWNERS of a tow company. An owner only makes good money if he invests into it and is smart enough to run it efficiently. Drivers of towing companies, on average, don’t make good money and are subject to being on-call 24/7.

How dangerous is it to be a tow truck driver?

Tow-truck driving is one of the most dangerous jobs in the country. Traveling to a foreign location, calming stressed drivers, working with heavy equipment, and maneuvering busy roads are all just part of a day’s work for tow-truck drivers.

How do you value a towing company?

The classic method of valuing towing businesses is based on the value of the real estate owned and profit times a multiple, or assets and some goodwill, whichever is greater.

Can I join AAA and use it immediately?

AAA Basic Membership benefits are available immediately to members upon joining. Plus and Premier service is effective 7 days after enrollment or upgrade payment is received.

Do you tip the tow truck driver?

If you think the worker went above and beyond and deserves a tip, the general consensus is $5 for small services like a jumpstart, unlock, or flat tire, and $10 for a tow. Of course, feel free to give more or less, depending on your ability to give.

How much does towing cost per day?

A typical tow fee is $100 and an impound lot / storage yard can charge $20-$30 per day (sometimes more) for storing your vehicle. Then there’s the costs of getting a rental car while your car is in the salvage yard.

Can you make money owning a tow truck?

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.

How do I start a repo business?

How to Start A Repo BusinessFamiliarize Yourself With Local Repossession Business Laws. Every state is different. … Get Your Financing Together. … Apply for your Repossession and Business Licenses. … Establish a Location for your Repo Business and Lot. … Start Building Your Fleet. … Get Insurance and Bonding. … Establish A Business Plan. … Hire A Team.More items…•

How do you get a towing contract?

6 places to get tow contracts.Municipalities (City/County)Roadside assistance/Motor clubs.Police departments (County/State)Local businesses (Shopping Malls/Apartment complexes/Public Parking )Repo.Insurance companies.

How much does it cost to start a roadside assistance business?

How much does it cost to start a roadside assistance business? The major cost involved in starting this business is buying a towing truck. Depending on a new/pre-owned vehicle the rate is going to vary from $10,000-$200,000. Other formalities including insurance, tools, and paperwork are going to cost $7,000-$10,000.