How To Start A Towing Company In South Africa

What is Towing?

Towing is coupling two or more objects together so that they may be pulled by a designated power source or sources. The towing source may be a motorized land vehicle, vessel, animal, or human, and the load being anything that can be pulled.

How To Start A Towing Company In South Africa

1. Buy a tow truck

You can not run a towing company without having a tow truck. This is the truck that you will use tow away cars. Tow trucks are very expensive, you will have to have at least R150 000 before even looking for any tow truck.

2. Licenses

You will have to register your towing company with the CIPC, registering a private company costs R175 in South Africa. Other licenses that you will have to obtain are driver’s licenses and other licenses that are required for towing companies (see the Gauteng Provincial Road Traffic Act (No.10 of 1997).

3. Insurance

Your towing company will have to be insured, there are a lot of things that can go wrong while you are towing people’s cars. This can lend you in serious legal waters and end up bankrupting your company.

4. Have a yard

At some point you will be required to tow illegally parked cars or to just remove cars from the accident scene and put them somewhere safe. This is when you will need a yard for parking the vehicles, you also get to make money from this because you will be charging them storage fees per night.

5. Marketing

Your primary target market is people who are stuck in emergency vehicle situations, or businesses seeking to tow illegally parked vehicles. People only seek towing companies when they need them.

Your marketing strategy should be geared towards making sure that they find you when they are looking for a towing company. Create a professional website, most people use Google to search for towing companies by using searches like “towing companies near me”. A professional website will lead them to using your services, you can get a well-designed website for only R1 200.

Frequently Asked Question (FAQs)

How much does a tow truck cost in South Africa?

The back of the form lists costs as follows: R3 950 for the initial towing; R9,50 per kilometer for a distance of more than 40km; a vehicle recovery charge of R2 500; further towing at R995 each; storage at R295 per day and an administration fee of R950.

Do you need special license to tow in South Africa?

There is no special caravan license or trailer license needed for towing; it all depends on how heavy the load is that you want to tow. If it is heavy, you may need to upgrade your license by taking a driving test for the correct category. This depends on what category test you passed and when you passed it.

What license do I need to tow a caravan South Africa?

To tow anything heavier than 750 kilograms, a Code EB license is required. An EB license is issued for light motor vehicles able to draw a trailer or caravan. This license type enables the holder to tow a trailer or caravan with a maximum GVM of 3 500 kilograms

Is buying a tow truck a good investment in South Africa?

If you’re really low on start up funds, you might consider renting tow equipment until you have enough contracts to justify the purchase of your own tow truck. However, if you plan to have your business for a long time, it’s probably worth the investment to purchase towing equipment.

How do tow companies make money in South Africa?

A tow truck business makes money by charging customers for tows. A typical charge will include a flat fee for the tow, a mileage fee, and a storage fee.

What does Mam mean in towing in South Africa?

On this page reference is made to the Maximum Authorized Mass (MAM) of vehicles and trailers. This should be taken to mean the permitted maximum weight, also known as the gross vehicle weight.

What is a Category B license in South Africa?

The category B license lets you drive a motor vehicle with a maximum weight of up to 3,500kg, it can’t have more than eight passenger seats. If you want to use a trailer the most it can weigh without additional hassle is 750kg.

What does 3500kg MAM mean in South Africa?

With trailers, the MAM represents the maximum combined unladen weight of the trailer and the permitted load it can carry. For example, if your trailer’s MAM is 3500kg and the trailer weighs 1000kg, then the maximum load permitted to be carried by the trailer is 2500kg.

Can you tow a trailer with a normal license in South Africa?

Under current legislation, a driver whose license dates from before 1 January 1997 is allowed to tow a caravan or trailer weighing up to 3500kg maximum authorized mass (MAM). Anyone who qualified after that can only tow up to 750kg, and if they want to pull anything heavier, they have to take a trailer towing test.

How much do tow truck drivers make in South Africa?

Tow truck operators with less than two years’ experience usually earn between R21 and R25 an hour. Experienced tow truck operators and/or those with extra licenses, such as heavy haulage, may earn up to R35 an hour.

What is the meaning of towing service in South Africa?

Towing Services means the act of removing a Disabled Vehicle from a public or private road area by attaching, lifting, pulling or dragging and storing such vehicles in a secure facility or location, and shall also include, but not be limited to, all labor, mileage, equipment, and cleanup required to effectuate the tow.

What is the speed limit for towing a trailer in South Africa?

Speed limits for cars towing caravans or trailers: 30mph limit applies on all roads with street lighting unless signs show otherwise.50mph applies on single carriageways unless signs show otherwise.60mph applies on dual carriageways and motorways.

What is the maximum Authorized mass of my car in South Africa?

The term maximum authorized mass (MAM), used in the context of driving licenses, is the maximum weight of a vehicle or trailer including the maximum load that can be carried safely while used on the road. This is also known as gross vehicle weight (GVW) or permissible maximum weight.

How much weight can a car carry kg in South Africa?

All cars carry 30-50 liter of fuel and a spare tyre weighing 30-50 kgs, so we can factor another 100 kgs. Thus most passenger cars should have an inherent ability to carry about 500-600 kgs of load in them.

What license do I need to tow a caravan in South Africa?

Do you need a towing license in South Africa?

Do I need a tachograph to tow a trailer in South Africa?

If you use a smaller vehicle (eg a 4×4) for towing, you’ll only need a tachograph if its total weight is more than 3.5 tonnes.

How much is a tow truck in South Africa?

Most towing companies have a minimum charge of R50 for the first 5 to 10 miles, then R2 to R4 per mile after. Factors to consider in towing a car are distance, type of vehicle, and the time of day.

Can I tow a car that is not insured in South Africa?

When using a tow-bar the towed vehicle will be legally classed as a trailer, so provided your own car insurance policy includes cover for pulling a trailer (or you take out a standalone trailer insurance policy) the towed vehicle won’t need its own car insurance policy.

Is it illegal to tow a car UK in South Africa?

You can tow trailers up to a certain weight with your car driving license. The weight you’re allowed to tow depends on when you got your license. You’ll need to know the weight of both the vehicle and trailer – also known as the ‘maximum authorized mass’ ( MAM ).