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How much profit can a towing company make? The average tow truck business owner makes between $30,000 and $40,000 annually.
Like the "repair"-plated tow-vehicle described above, a "ramp truck" displaying the valid compliance decal can tow an unregistered vehicle without a plate if the repairer has insurance coverage that protects the towing vehicle and the vehicle being towed.
You get cash customers in a number of ways. If you're listed in the yellow pages the older set will find you there. But online search engines and social media outlets such as Facebook is where the majority will find you. You also can get cash calls from referrals, postcards, and many other forms of advertising.
The Transportation Oversight Division of the Massachusetts Department of Public Utilities (DPU) regulates the involuntary towing operations of towing companies in Massachusetts.
Anyone operating a commercial tow truck in Massachusetts has to have a commercial driver's license, or CDL.
If you're really low on start up funds, you might consider renting tow equipment until you have enough contracts to justify the purchase of your own tow truck. However, if you plan to have your business for a long time, it's probably worth the investment to purchase towing equipment.
Usually only the owner of the car can get property out of the car. Some impound lots will release the property to another person if they have a notarized letter from the owner saying it's okay. The owner still has to prove they get benefits, are homeless, or qualify for legal aid in order to get their things for free.
Right now is the perfect time to join the tow truck industry: The automobile towing industry brought in $8 billion in revenue in 2019. This whopping figure proves that starting a towing business is possible and profitable, even in 2020.
Tow Truck Business IncomeNationwide, 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.
You cannot negotiate those fees because legal, administrative, and labor expenses are factored into them. The city sets most of those costs. The good news is that you will never get overcharged for towing services. California law protects drivers by setting fee restrictions on all towing and storage costs.