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How To Start a Tow Truck Business in

New York

Wondering how to start a tow truck business in New York? Looking to start a tow trucking business? Nate Jones Entrepreneur is here to help you with a free tow truck business plan below. Starting your tow truck business in New York the correct way is important.

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

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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

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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.

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Types of Tow Truck Businesses:

  • Flatbed Tow Truck

  • Hook and Chain Tow Truck

  • Wheel-Lift Tow Truck​

  • Boom Truck

  • Integrated Tow Truck

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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!

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New York City - Hempstead Town - Brookhaven - Islip - Oyster Bay - Buffalo

Need the Complete Guide?

If you are wanting to successfully launch and scale a tow truck business, you will need this E-Book. In this book we review the following topics: 

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  • Business Planning for a Tow Truck Business

  • Legal and Regulatory Requirements for Tow Trucks

  • How to finance and acquire tow trucks

  • How acquire loads and market your tow truck company

  • How to manage your finances and bookkeep your tow truck business

  • How to set up and scale your tow truck business

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Need Help Finding a Business Idea?

Download my
E-Book

Are you wanting to start a business but don't know which one or where to even look? Great news, I have done the hard work for you. In this book, you will learn the following: 

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  • How to find a business idea that fits your lifestyle.

  • How to uncover business ideas that no one else is starting.

  • How to potentially buy your first business instead of starting one.

  • How to start your business and set it up to succeed.

  • How to scale your business so you have a life.

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