How do tow companies get so many vehicles?

Discussion in 'Ask An Owner Operator' started by Dino soar, Jul 13, 2024.

  1. brian991219

    brian991219 Road Train Member

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    In Pennsylvania specifically you can start a towing company with nothing more than a US DOT and/PA PUC number for police response and breakdown service. If you do any type of secondary move, example taking a broke down car to an auction or towing it out of your lot to another repair shop then you also need operating authority, same as a trucking company.

    Now, to tow for the police or impound you will need specific zoning and lot requirements, a fence and specific types of equipment to qualify. Also note, there is no guarantee after you buy all this stuff that they will add you to the rotation list as there is no requirement to do so.

    To do abandoned vehicletoyou need to register as a salvor which has specific rules for zoning, commmercial business. Also, as with police towing, they don't have to give you any calls or even approve your request to be a licensed salvor.

    As for buying and selling parts, that requires township/local zoning approval and is different than being a salvor for removal of abandoned vehicles. You would need to comply with whatever your local rules are as a junk yard or dismantler.

    No, dealers can't dismantle cars and sell parts, at least not legally, although in PA they can buy salvage title vehicles. That said not all salvage titles can be rebuilt and sold.
     
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  3. Dino soar

    Dino soar Road Train Member

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    Actually that really is my question.

    So if I was a dealer that sold pickup trucks up to tractor trailers let's say, it's not legal to purchase salvage vehicles and sell the parts, and you're not permitted to have a dealership like that, and then in the back lot you have some trucks that are parts that you sell parts from.

    For the longest time I thought that if I had a dealership that I had constant access to trucks, that I would be able to acquire vehicles to sell parts also. To me that just always seem like a never-ending supply of vehicles and where I'm at and how I'm situated here I could see that really really really making a lot of money.

    Yet at the same point in time, having the trucking business here I don't think anyone could give me a hard time having trucks in the back lot and selling off the parts I don't need. I've already done it however many times over. Problem is the trucking business to me is kind of crappy unless I approach it a different way, and I need some kind of constant access to trucks, whether that's regular auctions or private people or whatever?

    And then there's these tow businesses that I see. I went one time up to Carteret New Jersey to a shop up there and I bought some airliner tandems from them.

    I get that people in any business can be successful, but when I look at a place like that that situated on maybe 20 or 30 acres with a garage that's larger than what dealers have, and you see like I don't know six or eight gigantic colossal trucks that can probably move mountains if needed... they cost more money than anyone could ever imagine and all you see is money everywhere and an army of smaller tow trucks and trucks for sale and money piling on top of money.

    And I've seen this quite a few times with these tow places that I have been to.

    I'm not a greedy person but I certainly believe in abundance and I'm at a point that I can pick where I'm headed and I'm looking for the money.

    There's a lot of options for me right now, so it really helps to understand all of this clearly.
     
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  4. brian991219

    brian991219 Road Train Member

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    Yes, in Pennsylvania they require a dismantler license to legally remove and sell used parts. Do a lot of tow yards and dealerships get away with it, sure, but all it takes is one call to have the environmental police all up your arse. Junk yards and dismantlers are hughly regulated and require storm water sampling, zoning approval, licensing, fencing and more.

    Having been in the business for decades many people assume we are just rolling in the money and that is not the case, at least not if you operate legally and ethically. To peoperly prepare a dismantler facility you are looking at a few hundred thousand in engineering fees, permits, approvals, construction of the fence and drainage controls and then inventory. Even to start a simple tow company properly you are looking at $100,000 or more to do it right with and be able to qualify for police rotation towing.
     
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  5. brian991219

    brian991219 Road Train Member

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    Below are a few links to some of the rules and regulations in Pennsylvania. Click thru them and download Publication 458 (repair, towing and repo) and 459 (dealer and salvor) as these explain in detail many, but not all, of the requirements. In addition to PennDOT licensing you also need Pennsylvania Department of State licensing, a physical property inspection, safe room for record storage, Department of Environmental Protection approval and local township approval.

    Dealer Services

    Junkyards

    67 Pa. Code Chapter 451. Control Of Junkyards And Automotive Dismantlers And Recyclers
     
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  6. Animosus

    Animosus Medium Load Member

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    You also need a disposal license to kill the vehicle in NMVTIS.
     
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  7. roundhouse

    roundhouse Road Train Member

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    Some states may allow the first wrecker on scene to an accident to have the tow but most do not .
    Allowing the first on scene to have the tow is just asking for a fight

    Most are on a rotating call list with the police .
    The owner of the crashed vehicle also has the ability to call whoever tow service they wish , if they can arrive in a timely manner .
     
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  8. Dino soar

    Dino soar Road Train Member

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    @brian991219

    Thank you for the nformation, that helps.

    From what you're saying, I would do better to either forget about parts and just become a dealer, or change around the trucking company however I want to and part some trucks out on the side.

    You can tell me if it's not the fact, but it's kind of difficult I think for someone to give me a hard time if I have a trucking business and I have extra trucks or parts that I sell off.

    If I had 20 trucks in my yard I could see them telling me I have a salvage yard. But if I have a trucking business and I have one or two trucks that I'm using parts off of and I sell the excess, I have a hard time seeing anyone giving me a hard time about that, at least in comparison to being a dealer selling parts.

    The truth really is any trucks that I buy almost always they are identical to other trucks that I have and I use parts off of them and the excess does get sold off. I don't think I've ever bought anything purely for the sake of just reselling it or parting it without me needing something from it.

    For example I just bought another F-350. That one is good enough I can put a tag on it and run around with it for a while, but ultimately those parts are going to go on to my other F-350 and whatever's left of this one will get sold off.

    There's always some variation of that happening here.
     
  9. Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    In Ca. ( I drove tow truck) we had AAA as well as police towing, but for police towing we needed 24/7 availability, a lot big enough to store cars and live phone answering. Also, there's a difference a towing lot storage and operating a dismantler. Tow co tows the car and owner must pay the fees to get the car out. Sometimes there's a police hold on vehicle if injuries or death involved. Also, if your vehicle towed because of illegal something, it can only be towed to a repair place.
     
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  10. roundhouse

    roundhouse Road Train Member

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    My neighbor and his wife have driven the same make and model and color of cars for decades .
    Same color too

    and when one get wrecked or too rusty they park it out back for parts and buy another one.
    Little fender bender ?
    Or need a power window motor etc

    No problem, you got your own parts car at home that’s the same color

    he drives a crown Vic and she drives a Yukon .
    And they have at least one parts car out back for each .

    saves a ton of money after a few years .


    As for your city or county regulations for storage lots and auto salvage sites, that’s a very local issue.

    you will have to read up on the regulations that affect your address
     
  11. Dino soar

    Dino soar Road Train Member

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    I don't think I want to go into all the Salvage and all of that.

    I think if I keep going with the trucking company for now, nobody is going to say anything to me if I have a couple of trucks for parts here, like two trucks or three trucks.

    Now If I had 25 trucks parked in tthe yard and I had a constant flow of people coming in and out buying parts, I think I'd have a problem.

    But just a couple trucks at a time, I don't think I'd have any problem.
     
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