Towing equipment is specialized. A rollback, wrecker or rotator is really three things financed as one: a truck chassis, a bed or wrecker body, and the equipment that makes it work, such as the wheel-lift, winches, lights and toolboxes. Lenders that understand towing value those pieces properly. Lenders that don't may treat the body as an afterthought, which shows up as a bigger down payment or a shorter term.
How different tow trucks finance
Rollbacks and car carriers
Rollbacks are the most common tow truck and among the easiest to finance. They have a broad resale market, they're useful to many kinds of businesses, and lenders see a lot of them. Both new units and clean used units on newer chassis tend to finance well.
Light- and medium-duty wreckers
Wreckers and self-loaders are widely used for motor club, repo and dealership work. Financing is similar to rollbacks. The body's manufacturer and condition matter as much as the chassis.
Heavy-duty wreckers and rotators
Heavy wreckers and rotators are among the most expensive equipment in towing. Because the amounts are larger, lenders look harder at the business: time in business, financial statements, experience with heavy recovery, and where the work will come from. Strong deals often show established heavy-duty accounts, a place on rotation lists or a clear plan for keeping the unit busy.
What lenders look at
- Time in business and experience. Years operating and years in towing, including the owner's experience before starting the company.
- Revenue sources. Motor club work, police and municipal rotation, private property impound, commercial accounts and heavy recovery. A mix of steady, documented sources is a strength.
- Bank statements and cash flow. Consistent deposits and healthy balances show the business can carry another payment.
- Credit. Business and owner credit, including how you've paid on past truck loans.
- Insurance. Towing companies carry specialized coverage, such as auto liability, on-hook and garagekeepers. Lenders need proof of coverage on the new truck before funding.
- The truck itself. Chassis year, make, model and mileage, plus the body's manufacturer, capacity and condition.
New vs. used tow trucks
New trucks qualify for the longest terms, and their warranties make costs predictable. Used tow trucks are financed every day, but terms get shorter as the chassis ages and mileage climbs. When buying used, get clear photos, the VIN, the mileage and the body details up front, and confirm the title is clean. A pre-purchase inspection protects you and helps the deal.
Upfit and equipment
Light bars, cameras, toolboxes, wheel-lift attachments, dollies, chains and other gear can often be included when they're on the dealer's invoice. Building the complete truck into one deal is usually simpler than paying for upfit separately.
Adding trucks for a new contract
If you're adding trucks to cover a new rotation, motor club zone or commercial account, say so. A short description of the work, and how many calls you expect, helps the lender see how the new payments will be covered.
Checklist before you apply
- Business name, EIN, years in business and USDOT number
- Three to six months of business bank statements
- Business tax returns for larger requests, like heavy wreckers and rotators
- The quote or invoice, with chassis VIN, mileage and body details
- A short summary of your main revenue sources
- Your insurance agent's contact
Looking at a tow truck now? Send us the details and we'll tell you what the deal will need. You can also see what we finance for towing.