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Towing Term

Impound storage revenue

Definition

The daily fee for holding a towed vehicle until somebody comes to claim it.

Why It Matters

Storage is high margin and bounded by the size of the yard, so a company with its own lot earns more from the same tow than one that hands the vehicle on. Ask how full the yard runs and how long the average vehicle stays, then check the title and the zoning. A leased yard with a short term is the constraint on the whole business, and renewing it is not a conversation you control.

Where to Go Next

More Terms in Towing