Used vs. New Tow Trucks: What’s the Smart Move in a Post-Supply-Chain & Tariff World

Tow truck operators across the country are facing a new challenge in 2025: balancing higher equipment rates, longer delivery times, and high interest rates. The decision of whether to buy new or used tow trucks has never been more challenging. Import tariffs, supply-chain delays, and increased finance rates are reshaping how business owners plan their fleet upgrades.

At Truecore Capital, we help towing companies navigate these shifts – finding the right financing solution to keep fleets running strong while preserving cash flow.

Tariffs and Supply Chain Disruptions Are Driving Costs Up

The U.S. has imposed higher tariffs on imported vehicles and parts, boosting the cost of commercial truck buyers. According to a report by Resources for the Future, import tariffs have significantly raised the average price of new vehicles, especially those dependent on foreign-sources components.

Meanwhile, supply-chain disruptions persist. Manufacturers continue to face parts shortages and longer lead times, forcing operators to wait weeks – or months – for new trucks. Every day without a working truck means lost revenue. Industry data from Tow4Tech found that heavy-duty truck downtime can cost businesses $400-$760 per day in lost productivity.

The result? Tow truck buyers are caught between two imperfect options – shelling out extra for new inventory or bidding in an overheated used market.

Buying New: Higher Price, Higher Reliability

• Investing in a new tow truck comes with key advantages:
• – Warranty protection and lower maintenance costs.
• – Access to modern safety and telematics features that improve dispatch efficiency.
• – Better financing terms based on the fact that new equipment carries stronger collateral value.
• – Potential tax benefits, including Section 179 and bonus depreciation deductions.

However, new truck purchases are considerably more expensive in today’s tariff-driven economy. Rising interest rates add to the burden, driving up monthly payments and totaling financing costs. And long manufacturer lead times can delay revenue generation – especially for small operators who rely on each truck to generate a consistent cash flow.

Buying Used: Faster Access, More Risk

Used tow trucks can provide faster, more affordable access to needed equipment. With smaller loan amounts, monthly payments are often several hundred dollars lower than for new units – for businesses expanding quickly or replacing a single unit, that flexibility matters.

But there are also disadvantages to the used market. Strong demand has inflated prices, narrowing the gap between new and used options. Maintenance risk also rises: older trucks may face downtime waiting for imported parts – the very same supply-chain pushing buyers toward used in the first place.

Strategic Factors to Consider in 2025

• When deciding between buying new or used, thinking beyond just the price – consider:
• 1. Time to deployment: How fast do you need the truck operational?
• 2. Cash-flow impact: Can your business comfortably meet higher payments on new equipment?
• 3. Downtime expense: Would warranty coverage on a new truck protect against costly breakdowns?
• 4. Interest-rate timing: Locking in a rate today can save thousands if rates go even higher.

In many cases, operators are splitting their strategy – financing one new truck for reliability and one used truck for backup or expansion.

Financing Solutions for Tow Operators

• Truecore Capital understands that no two towing operations are alike. That’s why we offer financing programs designed around your revenue cycles, fleet age, and growth goals. Whether you need to replace a worn-out wrecker or expand into new service territory, our solutions include:
• – 0% down financing options for qualified applicants.
• – Start-up options available.
• – Section 179/tax benefits.

By financing instead of paying cash, tow operators have liquidity for insurance, payroll, and new contracts – while still upgrading their fleets for long-term success. In this unpredictable post-pandemic economy, the decision between a new and used tow truck isn’t straightforward. It’s a strategic balance between cost, reliability, and timing. With tariffs, supply-chain disruptions, and rate hikes still influencing the market, smart financing is your most valuable tool. At Truecore Capital, we help tow truck operators nationwide secure the right financing to stay competitive – whether that means acquiring a late-model used rollback or ordering a new flatbed built for tomorrow’s towing demands.

Ready to Explore Your Options?

Give us a call at (805) 422-7342 or submit a quick contact form below and one of our specialists will reach out to you shortly.

• Sources:
• – Resources for the Future, “Import Tariffs and the Market for Vehicles,” [https://www.rff.org/publications/reports/import-tariffs-and-the-market-for-vehicles/].
• – Tow4Tech, “The State of Transportation and Trucking Businesses in 2025: How Technology is Transforming Costs and Efficiency,” [https://www.tow4tech.com/post/transportation-trucking-technology-2025-cost-savings].