Starting your own business can be as exciting as it is profitable. By starting an independent towing company, you get to be your own boss and provide an essential service to your community. People will always need towing services as long as there are cars on the road, and you can set yourself up to answer the call. So, how do you start your own towing company? To help you get started, we’ll go over all the initial and ongoing expenses you need to know about.

Table of Contents

• Initial Tow Truck Business Expenses
• Recurring Expenses
• How Much Money Can You Expect to Make?

Initial Tow Truck Business Expenses

The main initial expense when opening a tow truck business is the truck itself. How much does it cost to buy a tow truck? The answer depends on the kind of vehicle you want and the current market. A new light-duty tow truck will be on the lower end of the spectrum, although still more than many used vehicles. On the high-end of the price range, an ultra-heavy-duty tractor-trailer can handle even the biggest towing jobs. You might choose to take out a mortgage, which lowers your initial costs and raises your monthly expenses.
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According to the National Institute for Occupational Safety and Health (NIOSH), the tow truck industry is among the most dangerous. The motor vehicle towing industry sees 43 deaths per 100,000 workers, compared to the national average of 2.8 per 100,000 workers.

As an occupation that spends a lot of time on the road and dealing with heavy machinery, tow truck driving has plenty of opportunities for hazards. Besides the potential for crashes while traveling to and from sites, drivers spend time on the sides of busy roads. An improperly lifted vehicle can roll backward, and debris from a damaged car can lead to cuts and other wounds. Following some tow truck driver safety tips can save lives and prevent injuries or dangerous mistakes.
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A majority of Americans take out loans to pay for their new vehicles — as of 2019, total auto loan debt in the U.S. was nearly $1.2 trillion. Instead of borrowing to buy a car, about 30 percent of drivers decide to lease their vehicle, effectively borrowing the car from a dealer for a set amount of time.

Those who finance or lease a vehicle are expected to pay the lender or dealer according to the terms of the loan or lease. If a driver stops making payments, the lender can repossess the car. About two percent of car loans and leases in 2019 were delinquent, meaning the driver was at least 30 days past due on paying.

Someone has to have the job of repossessing delinquent vehicles. Depending on your disposition and skill set, that someone could be you. In this guide, we’ll discuss the process of becoming a repo person and what it takes to become a repo man.

Table of Contents

• The Type of People Who Are Repo Agents
• How to Become a Repo Man
• How to Get a Job as a Repo Man
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Whether you miss a single or several payments on your car loan, the situation shouldn’t be taken lightly. You need to act fast and make smart, honest decisions based on your finances and personal circumstances. In many cases, failing to pay consecutive installments can result in the repossession of your vehicle — but there are several proactive steps you can take to avoid it.

Lift and Tow will help you understand the impact of voluntary repossession and how voluntary repossession works.

Table of Contents

• How a Repossession Affects Credit Scores
• What Is Voluntary Repossession?
• Should I Voluntarily Repossess My Vehicle?
• How to Avoid Repossession

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Table of Contents

• How Much Can a Repo Man Make?
• Costs and Fees to Expect
• How Much Are Repossession Fees
• How Much Money Can a Repo Man Make?

A repossession man or woman is responsible for reclaiming anything people take out loans for. When a borrower doesn’t make the necessary payments on credit, the lender can hire a repo man to do the dirty work and repossess the item — which is often a vehicle.

Lift and Tow has devised a guide on the process of getting paid, expected fees and how much a repo man can make. If you’re looking to become an independent agent, we can help you through the process of investing in the best equipment for your repossession company.

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If you want to become a repo agent, you will first need to determine whether you have the right kind of personality for the tasks that the job entails. It takes tremendous amounts of courage and a hefty backbone to carry out vehicle repossessions, as you perform a service in which there is usually going to be a disgruntled party. The steps in car repossession are not complicated, but they involve more than simply going out to reclaim an unpaid vehicle.

Table of Contents

• How to Repo a Car?
  • Know the Repo Laws of Your State
  • Make Sure the Debtor Is in Default
  • Locate and Verify the Car
  • Choose the Method to Repossess
  • Do Not Breach the Peace

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Due to the high cost of automobiles, most drivers take several years to pay off a car, truck or SUV. Financial problems are not uncommon, and a driver could easily face some unforeseen hardship during a car loan. If you find yourself in this kind of situation, your vehicle could be subject to auto repossession at the hands of a repo agent.

Table of Contents

• What Is Auto Repossession?
• How Does Repo Work?
• How Does a Repo Man Find a Car?
• How Long Will a Repo Man Look For a Car?
• How Long Is the Repo Process?
• How to Get a Repossessed Car Back?
• Can You Become a Repo Agent?

What Is Auto Repossession?

Automobile repossession is an act where a lender reclaims a vehicle after a period of nonpayment from a debtor. For example, if you drive off a lot with a new vehicle under a four-year payment plan but fall behind on payments after 18 months, your car could be subject to a repossession. Auto repossession is authorized by lenders and carried out by repo agents, who are sent to reclaim defaulted-on vehicles. Simply put, auto repossession is a consequence of failing to make payments on a vehicle you have yet to pay off in full.

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We recently looked at how to start your own repo business. This can be an extremely profitable line of work. Unlike most other businesses, repo businesses can benefit rather than suffer from tough economic times. Even when the economy is doing relatively well, there will always be people who fail to make payments on their vehicle. The economy has been improving in recent years, and yet still, at the end of 2017, more than four percent of auto loans were 90 days late or more — the highest rate in five years.

Table of Contents

• Extend Your Reach
• Build Your Brand
• Work on Your Website
• Focus on Sales
• Only Hire and Keep the Best of the Best
• Develop Service Standards and Procedures
• Leverage Client Testimonials
• Purchase High-Quality Equipment
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