Tow Truck Financing: Funding a Tow Truck For Your Business

Helping small- to medium-sized business owners find the right tow truck financing services.

Tow Truck Financing

Charter Capital has been in the business of providing tow truck financing support to small- and medium-sized businesses for the past 40 years. As an industry leader, we understand the ins and outs of equipment financing and can provide solutions to common pain points that emerging businesses experience as when they start or expand their operations. 

Tow trucks and related machinery are no small purchases. It is our mission to help you move forward with your growth plans in the most seamless way possible. We have more than 20 lending partners in our network whom we trust and have done business with for many years. We can help you find the perfect tow truck loan provider that will meet your needs.

Some of the types of equipment that we can help you finance include:

  • Standard tow trucks
  • Wheel lift tow trucks
  • Flatbed or rollback tow trucks
  • Hook and chain tow trucks
  • Oversized tow trucks
  • Boom trucks
  • Integrated tow trucks 
  • Rotator trucks
  • Medium-duty wreckers


Learning how to finance a tow truck doesn’t have to be complicated. With an experienced financial broker to help you, you can obtain the right trucks and machines you need with utmost confidence. Get in touch with Charter Capital today to talk to our knowledgeable team and find out what equipment financing solutions are available to you.

tow truck financing

Some of our customers...

  • are interested in the lowest rate.
  • are interested in a specific tax treatment.
  • want to avoid breaching existing lending covenants.
  • are interested in the longest term.
  • are interested in getting reimbursed for equipment they have already paid for.
  • want seasonal or other cyclical structures.
  • want to finance software.
  • want us to give the seller a deposit before the equipment is shipped.
All of our customers want a fair deal at a fair price and no surprises.

Should You Finance or Lease Your Tow Truck?

You might be on the fence about whether you should finance your tow truck or lease it instead. The answer depends on how and for how long you expect to use your new machine. 

If you foresee using your tow truck for the long-term, such as when it’s part of your regular operations, it would make sense to own a truck and seek financing options. Be prepared to shell out for the down payment, which is usually 10% to 20% of the total list price, before financing terms are applied to the remainder. After several years of use, you can decide to sell the unit at its depreciated price, enough to place another downpayment on a new, upgraded machine. 

Charter Capital partners with several lenders with easy tow truck financing application processes and affordable rates, so you don’t have to worry about searching for one that meets your needs.

On the other hand, if you don’t see your business using the tow truck regularly, you might want to consider leasing it instead. A lease does not typically require a downpayment and you can set the terms for only as long as you need the machine. Think of it as a rental. When the lease term is over, you have the option to return the tow truck and upgrade to another unit, with another lease term, or you can buy the machine from the provider at a lower price (if you want to keep it). 

Tax Incentives for a Tow Truck Purchase

Your tow truck financing expenses might qualify for a tax deduction through the Section 179 law. This states that business owners can avail a tax deduction of as much as the full purchase price of machines and off-the-shelf software purchased up to a specific amount for the current financial year. 

For 2021, the limit allows for up to $1,050,000 in eligible equipment for deduction and the total equipment purchased by your business should not go beyond $2,620,000. The bonus depreciation of 100% applies to both new and used machines purchased during the year. 

Business owners are allowed to use Section 179 annually as it has been made a permanent part of the tax code. You can read the official Section 179 financing rules to find out if you can take advantage of this benefit. 

Charter Capital is here to help your business move forward by providing support for any equipment financing needs. Whether you are looking for tow truck financing providers or help with any other type of machinery, you can count on our team to stand by you as you grow. Contact us today.

Connect with us and apply now