Tow Truck Financing Options at Midco Sales

Flexible Loans, Lease-to-Own Programs & TRAC Leases for Every Towing Operation

Financing a tow truck is one of the most effective ways to grow your business without draining your cash reserves. Whether you’re a start-up operator purchasing your first rollback or an established towing company adding a heavy-duty unit, Midco Sales helps you secure the right financing structure through trusted national lenders.

We partner with a network of top commercial equipment finance companies—including Beacon Funding, Trans Lease, Amur Equipment Finance, Santander, Mitsubishi HC Capital America, and others—to match buyers with flexible programs that fit their budget and business model. All financing is through outside lenders, but our team guides you through the entire process from application to delivery.

Why Finance Your Next Tow Truck?

A new or used tow truck is a major investment. Financing helps you:

• Preserve cash for payroll, fuel, insurance, and day-to-day operations

• Get into a truck now instead of waiting to save the full purchase price

• Match your payments to your business’s revenue cycles

• Take advantage of potential tax deductions depending on the structure

• Expand your fleet and stay competitive with newer, more reliable equipment

Financing simply makes it easier to grow your towing business efficiently and affordably.

Financing Structures We Can Help You Secure

Midco Sales works with multiple lenders, allowing us to match you with the best structure for your credit, business experience, and equipment needs. Below are the most common tow truck financing options our customers use.

Equipment Finance Agreement (EFA) / Traditional Loan

This option works like a conventional loan:

• You own the truck from day one

• Monthly payments typically include principal and interest

• Down payment may be required

• You may be eligible for Section 179 and bonus depreciation deductions (consult your CPA)

This structure is ideal for operators who want the truck titled in their business name immediately and who prefer the depreciation benefits that come with ownership.

Lease-to-Own Tow Truck Programs

Lease-to-own offers the flexibility of leasing with the goal of ownership at the end of the term. Many programs include:

• Lower upfront cash requirements

• Potentially no upfront sales tax (in many states, tax is paid with each lease payment rather than in one lump sum)

• Predictable monthly payments

• A low purchase option at the end of the term, often $1 or a small residual

This structure is popular with start-ups and growing operators who want ownership without the heavy initial cost of a traditional purchase.

TRAC Leases (Terminal Rental Adjustment Clause)

TRAC leases are common for titled commercial vehicles, including tow trucks. Key advantages:

• Lower monthly payments than comparable loans

• Sales tax often applied to the payment stream rather than upfront (varies by state)

• Ability to write off payments as an operating expense (ask your tax advisor)

• End-of-term flexibility: purchase the truck at a pre-set residual, continue leasing, or return/sell the unit

Businesses that refresh trucks regularly or want lower monthly cost often choose a TRAC lease.

How Lease-to-Own and Leasing Can Reduce Upfront Sales Tax

One of the biggest advantages of leasing is the potential to avoid paying the full sales tax upfront.

Purchases vs. Leases — How Sales Tax Is Handled

• Loan / EFA Purchase:
  Many states require sales tax on the entire purchase price upfront when the vehicle is titled or registered.

• Lease-to-Own / TRAC Lease / FMV Lease:
  In many states, sales tax is spread across the payments rather than collected in a single lump sum. This keeps more cash available for fuel, insurance, hiring, marketing, and day-to-day operating expenses.

While this is a major cash-flow advantage, rules vary by state and by structure. Some states treat $1-buyout leases like purchases. Always confirm with your CPA or tax advisor.

Tax Treatment: Lease Payments vs. Depreciation

Financing structure can affect your tax write-offs. Here’s the general difference:

Lease Payments

Many tow-truck leases allow payments to be deducted as an operating expense, giving steady annual tax relief.

Loans / EFAs / Some Lease-to-Own Agreements

Ownership-oriented structures may allow your business to take:

• Section 179 expensing

• Bonus depreciation

• Interest deductions

The best option depends on your business income, tax strategy, and long-term plans—your tax advisor can help determine which structure produces the greatest benefit.

Who Tow Truck Financing Is Designed For

Start-Up Towing Companies

Many specialty lenders can work with operators who are new to business ownership, especially if they have prior towing or trucking experience. Lease-to-own is often a strong fit due to lower upfront cost.

Growing Fleets

Financing helps companies add units—like a new carrier, wrecker, or rotator—without tying up working capital.

Established Fleets Replacing Older Trucks

Leasing structures help rotate older equipment on a predictable schedule, reducing downtime and repair costs.

What to Expect When Financing a Tow Truck Through Midco Sales

We streamline the process to get you funded as quickly and smoothly as possible.

1. Select Your Tow Truck

Browse our full tow truck inventory, including rollbacks, carriers, wreckers, and heavy-duty rotators.  Complete the simple online Finance Application or call our sales office at (480) 999-0607.

2. Discuss Budget and Structure

Our team will review down payment goals, preferred monthly range, and whether you prefer a loan, lease-to-own program, or TRAC lease.

3. One Application, Multiple Lender Options

We work with a large network of national equipment finance companies—including Beacon Funding, Trans Lease, Amur Equipment Finance, Santander, and Mitsubishi HC Capital America—to match your profile to the right program.

4. Quick Approvals

Many lenders offer fast decisions for qualified buyers.

5. Funding and Delivery

Once documents are completed, the lender funds the truck and Midco Sales coordinates pickup or delivery.

Get Financing for Your Next Tow Truck

If you’re ready to expand your fleet or upgrade your equipment, Midco Sales can connect you with the right tow truck financing solution.

Browse our current tow truck inventory and contact our team today to get started.

Midco Sales
1200 S. Akimel Ln.
Chandler, AZ 85226

(480) 999-0607

Disclaimer: Midco Sales is not a CPA or tax advisor. Sales-tax and deduction rules vary by state and by financing structure. Always consult your tax professional to determine the best option for your situation.