Eager to start your food truck business? You must be excited by now to start your search for that most-coveted vehicle. Of course, don’t make a purchase yet unless you have all the documents ready, especially your feasibility study, business plan, permits, licenses, etc.
Above all, you don’t buy your truck after just the first visit. Take time to research different dealers and then compare the prices. Yet, price isn’t the only thing that matters. There are still additional factors to consider when buying a truck, consult for further information on the purchasing or leasing process.
FYI, the process of buying a vehicle involves many steps which will surely cost you money besides being time-consuming since there will be a negotiation between buyer and manufacturer/dealer. To make the process less daunting, here are some tips we’d like to share.
What Food truck Operators Should Know Before Buying Their First Food Truck
1. Choosing between brand-new and used – both have their upsides and downsides.
In general, owning a brand-new truck gives you the advantage of having it customized to cater to your specific requirements. In its early years, the truck will not suffer unnecessary breakdowns therefore no worries about major repairs. The maintenance cost is still lower.
Although used vehicles may also come with warranties, they’re not as great as what comes with a new truck. Most of all, you’d be the proudest owner to show off your unit that still smells fresh, looks shiny and clean.
As to buying used – expect the price to be much cheaper. If you like what you’re seeing upfront then you would no longer spend on retrofitting. Just make sure the kitchen design works for you. Further, your truck shall have its own set of equipment and utensils so pretty sure there’s no need to purchase more.
Conversely, you need a large amount of cash upfront if you’re going for a brand-new. Likewise, to customize your mobile kitchen, you may have to wait longer for the manufacturer to complete the job, so your business might be a little delayed.
And, if ever your business turns out successful, you will need a bigger space but might not be financially ready since you already had all your money for the initial investment.
The downside to buying used is the increased risk you’ll be facing once trouble begins so you need to save money for your truck’s expensive repair and maintenance. As such, you’d be feeling uncertain as to how the previous owner managed the vehicle hence, more worries.
2. Leasing as your option
The upside to leasing which is ideal for first-time entrepreneurs is that only minimum payments are required. No worries about where to get a huge starting payment like in the case of buying a truck, whether new or slightly used. Its downside is when the lease expires while the business is making money, Hence, it’s very important to review what’s stipulated in the contract before signing any.
3. Where to buy
You’d feel overwhelmed with the countless dealers throughout the US since all of them claim to be reputable, legit, and efficient. True, there are popular ones like Craigslist, eBay, Used Vending, and lots more where your investment is safe.
To avoid risks like scamming, buy food trucks only from trustworthy vendors. Check out this link for the best deals.