Is A Tow Truck Business Profitable?

How do tow trucks get paid?

There are two ways a tow truck driver gets paid.

By the job, or commission- which is usually best, you do have slow times, but as long as you are at a steady company – commissions can range from 20–30% of the gross on the load or pickup and delivery..

How much do tow truck workers make?

The average salary for a Tow Truck Driver is $26.88 per hour in Alberta, which is 34% above the national average.

How much does it cost to start a towing company?

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.

Do you need a CDL to drive a rollback tow truck?

While there is no law stating you need a license to become a tow truck driver, the federal law — according to the United States Department of Transportation — says you must hold a commercial driver’s license, CDL, before towing more than 26,000 pounds.

How much do a used tow truck cost?

Depending on the options you choose, the cost of a typical tow truck can be anywhere between $58,000 and $850,000. Anyways, that’s our disclaimer.

How much do CDL tow truck drivers make?

Tow Truck Driver SalaryPercentileSalaryLocation10th Percentile Tow Truck Driver Salary$41,921US25th Percentile Tow Truck Driver Salary$47,672US50th Percentile Tow Truck Driver Salary$53,989US75th Percentile Tow Truck Driver Salary$61,905US1 more row

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. … Nationally, the average cost for a tow is $109, according to a survey conducted by Angie’s List.

How do I start a towing company?

Start a towing company by following these 9 steps:STEP 1: Plan your Business. … STEP 2: Form a legal entity. … STEP 3: Register for taxes. … STEP 4: Open a business bank account & credit card. … STEP 5: Set up business accounting. … STEP 6: Obtain necessary permits and licenses. … STEP 7: Get Business Insurance. … STEP 8: Define your brand.More items…

What is the best tow truck to buy?

Best Trucks for Towing2020 Chevrolet Silverado/GMC Sierra 2500HD | up to 18,500.2020 Ford F-250 Super Duty | up to 20,000 pounds.2020 Ram 1500 | up to 12,750 pounds.2020 Ford F-150 | up to 13,200 pounds.2020 Chevrolet Silverado/GMC Sierra 1500 | up to 12,100 pounds.2020 Ford Ranger | 7,500 pounds.2020 Chevrolet Colorado | up to 7,700 pounds.More items…•

How much money 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.

What is the difference between a wrecker and a tow truck?

The major differences between a wrecker driver and a tow truck driver are their employers and the scope of their duties. While both positions require you to tow cars, a tow truck driver typically only tows vehicles. They do not generally perform repair or maintenance work, while a wrecker driver is authorized to do so.