Starting a Towing / Wrecker Company

A new Wrecker/Rotator is MEGA $ and there is a LOT of competition in the Chicago area for HEAVY duty towing.

 

Unless you have a lot of extra cash and I mean alot. You ain't gona beleive the cost of a large wrecker. The wrecker bed is close to the cost of a new truck. To order one together new is new 300K. To get a loan on one is pretty tough also as the banks want to see where you already have the business. I if you was able to get a loan, it would take a lot of very steady work to make the payments.
Most work with a wrecker comes from contracts and reputation.
The only way to I can imagine to get into that field as an O/O would be to have an older paid for truck and the cash to buy a good used wrecker bed which is pretty hard to find. Then with no payments and with no need to make a living for approx. 2-3 years, you can develope contracts.
The police normally call the same outfit with have ties with each other. Then other jobs come from shippers and brokers that need riggers for unusual unloading situations. Also a few good ties with the insuance companies. Once you've been in business a few years, then you can apply for the contract on the tow roads, but I think that requires to have so many wreckers on standby on the tow road during rush hour.
Now if your just wanting to get into a rollback to haul cars that is a little easier.
Oh and lets not forget the insurance is very very high.
I hope this helps and doesn't sound to discouraging. I wish it was easier and not so much about the right connections.

 

A yard is not a requirement but that is one a big part of the profit. These towing companies make a very large percetage on storage fees. I would imagine it would be a reqirement if getting most contracts. Most contracts are with a large business that wants a very moved off their property but want you to store it till you get your money from the truck owner.
Another big lead is with local trucking companies but then you have to give very large discounts.

 

Wrecker/Rotator are specialized and not used on every tow job , also the charge $ is very high so another factor not always used , might be an option to sign on as an O/O with 1 of the established towing outfits.

 

i would think the best way to start would be with a smaller roll off wrecker for cars and work your way up to the big stuff. i believe these are the bread and butter of most towing operations as well the big rotators and such are just the icing on the cake.