Tow trucks are an essential piece of equipment for many businesses in the automotive and roadside industries. These specialized vehicles allow quick and efficient towing of other vehicles, making them valuable when it comes to providing emergency roadside assistance and vehicle transportation services.
Businesses that want to invest in a tow truck must consider how much they will need to spend, as well as the type of equipment financing that may be available. Tow truck prices vary depending on model, size, and other features but generally range from $25,000 to more than $150,000.
In this article, we will cover how much you can expect to pay for a tow truck, as well as the various financing options available.
What Is a Tow Truck Used For?
A tow truck is a vehicle used for towing or transporting other vehicles. It can be used in emergencies to provide roadside assistance, such as when a car has broken down and needs to be towed away from the scene. Tow trucks are also commonly used by businesses that specialize in automotive transportation services — like scrapyards, auto repair shops, repossession agencies, etc.
Tow trucks come in various sizes and configurations to suit different needs. Light-duty tow trucks are smaller, less powerful vehicles that are usually used for lighter jobs like towing cars and small pickups. Heavy-duty tow trucks, on the other hand, are larger and more powerful — they can be used to tow large commercial vehicles and heavier loads.
How Much Does a Tow Truck Cost?
The cost of a tow truck can vary greatly depending on the model, size, and features you choose. As mentioned earlier, light-duty tow trucks typically range in price from around $25,000 up to $50,000 or more, while heavy-duty commercial tow trucks can cost upwards of $150,000.
Factors that can affect how much a tow truck may cost include the model, size, and manufacturer. There are also additional costs to consider, such as taxes, insurance rates, and other fees that may apply depending on your location and how you plan to use the truck.
To give you an idea of how much you might spend on a tow truck, here are the pricing ranges for some of the leading brands today:
- Ford: $25,000 – $50,000
- Chevrolet: $30,000 – $60,000
- Ram: $35,000 – $65,000
- Freightliner: $45,000 – $100,000
- Peterbilt: $50,000 – $150,000
Tow Truck Financing Options
Many businesses choose to finance their tow truck purchase instead of paying cash upfront. This allows them to spread the cost out over a period of time and make smaller monthly payments. There are several different financing options available for tow trucks, including:
- Bank loans: Banks and other financial institutions may be willing to offer loans for the purchase of a tow truck. These typically have low-interest rates, but there may be various fees and requirements that apply.
- Equipment leasing: This is another popular option for tow truck financing. You can lease the equipment instead of buying it outright. This allows you to spread the cost out over a period of time, and at the end of the leasing term, you can either return or purchase the truck.
- Financing through dealers: Many tow truck dealerships offer financing options for customers who are looking to purchase a tow truck. These typically have lower interest rates than bank loans and may offer other benefits as well.
Renting vs. Buying a Tow Truck
You may also want to consider renting a tow truck instead of buying one. This can be a great way to take advantage of the latest equipment without making a large investment.
Renting offers an advantage over buying the equipment outright by allowing you to minimize your upfront costs and avoid long-term commitments. It’s a practical choice if you don’t need a tow truck on a regular basis or want to try out different models before committing to a purchase. However, if you need the tow truck for more extended periods of time, it might be better to purchase than to rent.
Need Tow Truck Financing? Charter Capital Can Help
No matter how you decide to finance your tow truck purchase, the experts at Charter Capital have financing solutions to fit your needs. We can help you find the perfect financing option so you can get a great deal on your tow truck purchase.
Charter Capital has been helping businesses acquire the equipment they need to start or scale for over 40 years. We have a wide network of carefully vetted lending partners, and our team of experienced financial brokers will work with you to find the best financing solution for your needs. Contact us today to learn more about how we can help you finance your tow truck purchase.