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Your first step in determining what type of vehicle you can afford is based solely on how much capital you have on hand or how much you can be approved to finance. After you’ve determined your budget and figured out how to finance your business (check out Chapter 5), you’ll be ready to look down the various avenues in which you can acquire the platform for your mobile business. The following sections discuss leasing a vehicle, buying or building a brand-new vehicle, and buying a used vehicle.

Take the time to test-drive any food truck you’re interested in. You must determine the maneuvering of the vehicle and how its sightlines are. You don’t want to get on the road and find out that you need multiple spotters to be able to park in most areas. Why risk your insurance premiums if you can find a truck that maximizes your visibility?

Leasing a vehicle

If you don’t have access to a large amount of start-up capital but know you’ll have enough to make payments for your vehicle, you may want to lease a food truck for commercial use.

When buying your truck, you may need more than $50,000 at the time of purchase, depending on the size of the truck and the amount and quality of your equipment. Leasing is a much better upfront value because you can get a similar vehicle for a payment of only $3,000 a month. Also, commercial truck leasing offers a huge advantage over outright purchases or financed truck ownership in that truck lease payments are tax deductible for your business.

The downside to leasing your vehicle is that at the end of the term, your truck must be turned back in, and unless you plan to pay it off or can put together a lease agreement that has a purchasing option, you’ll basically have to shut down your business until you’re able to find a replacement truck.

Food truck leasing companies exist throughout the United States and Canada. Companies such as Mobi Munch and Road Stoves in the Los Angeles area, 800BuyCart.com in New York, and Miami Trailers in Florida are examples of companies that work specifically within the mobile food industry, and they’ll even ship trucks across the country. Truck and automotive manufacturers, such as Nissan, Mercedes, and Utilimaster, also have vehicle platforms that they’ll send out to kitchen builders to retrofit your kitchen equipment prior to leasing the vehicle to you. You can get more information at www.nissancommercialvehicles.com, www.mbsprinterusa.com, and http://www.gourmetmobilekitchen.com/gourmet-mobile-kitchen/.

Buying or building a new vehicle

Purchasing a new truck is what most start-up food truckers whom I’ve spoken with prefer. The high prices of buying new ($75,000 to $300,000) are their only source of hesitation. Being able to set up your truck the way you want with all the right kitchen equipment and options is very desirable. This scenario is similar to buying a new car: You don’t have to worry about how the last owner drove it or how they maintained the kitchen.

An additional advantage to buying new is the warranty. Be sure to ask salespeople about the warranties they offer and what each covers. Another question you should ask is whether the dealer supplies a loaner truck should issues arise that take your truck off the road. The longer you’re off the road, the longer you’ll need to rely on an alternative plan to sell your product.

Finally, if you decide to purchase from a dealer, be sure the asking price is fair. Research similarly equipped vehicles in similar condition. If you don’t have any skills in haggling, either learn how to haggle or take someone with you who can. In many cases, sellers are willing to accept offers as low as 15 percent off their asking price. Saving money on the front end can only help you in the long run.

You can also ask other food truck owners in your area for the names of reliable local vehicle dealers who provide follow-up after a purchase. Here are some websites of national truck manufacturers that give you the option of searching for dealers closest to you:

❯❯ Nissan: www.nissancommercialvehicles.com

❯❯ Sprinter: www.sprintervansusa.com

If you can’t find a new truck with the proper equipment configuration, customizing a vehicle is an option. The main advantage, of course, is having the truck setup of your dreams (instead of having to deal with a poor kitchen layout or a kitchen that isn’t equipped for the style of cuisine you plan to sell), but this is by far the most expensive route and can take the most time before the truck is ready for delivery. Although most timing quotes are from four to six weeks, be sure to talk with the shop’s previous customers to see whether the seller followed through on his promises or whether it took much longer. Missing a proposed opening date because you received your truck one to three months late will make you look quite unprofessional. Reneging on timing can hurt any positive word of mouth you may have already received and can be very difficult to recover from.

If you decide to have your truck built from scratch, be sure to use a local truck builder who’s familiar with all the current local health code requirements. A knowledgeable builder can help speed up the health department’s review of your truck’s floor plans and your final inspection.

Here are a few companies that can help you build the truck of your dreams (or at least get you started with one that will deliver your concept and cuisine):

❯❯ AA Catering Truck: www.aacatertruck.com

❯❯ Bens Carts: https://store.benscarts.com

❯❯ Creative Mobile Systems: www.cmssystem.com

❯❯ Cruising Kitchens: www.cruisingkitchens.com

❯❯ Food Cart USA: www.foodcartusa.com

❯❯ Northwest Mobile Kitchens: www.northwestmobilekitchens.com

❯❯ Prestige Food Trucks: www.prestigefoodtrucks.com

Purchasing a previously owned vehicle

Buying a used vehicle is by far the most economical way to purchase your rolling kitchen (costs range from $15,000 to $99,000), but at the same time, it carries the most issues. If you decide to purchase a used truck, be sure to have a certified mechanic conduct an inspection. Your vehicle is the largest investment you’ll have when starting up your business; you can’t afford to purchase one that’s consistently in the shop. In addition, even if a vehicle meets the health department codes in one area, it may not meet them elsewhere. When you buy a truck, you’re responsible for bringing the vehicle up to all current standards of the cities you plan to be licensed in.

Check out the following for dealers that sell used vehicles:

❯❯ eBay: www.motors.ebay.com

❯❯ craigslist: www.craigslist.com

❯❯ Commercial Truck Trader: www.commercialtrucktrader.com

❯❯ Road Stoves: www.roadstoves.com

❯❯ Used Vending: www.usedvending.com

Although you can find a used vehicle on sites such as eBay or craigslist for under $10,000, your investment price can skyrocket the minute you start installing vending windows, lined walls and floors, electricity, hot running water, and a retail payment system. Also, while online purchases of food trucks and other mobile vending units have increased over the last few years, some people and companies are taking advantage of this trend. More than a dozen consumers were left out in the cold when they spent thousands to order hot dog carts on eBay and received nothing in return. If you’re planning to make a purchase of more than $500 from an online auction site, I recommend using an escrow service. The service receives the item from the seller before sending the seller your payment. eBay recommends Escrow.com and warns consumers of many fraudulent escrow companies, so if a seller suggests another company, investigate that company first. Also avoid paying for online auction purchases via wire transfers, which carry few – if any – fraud provisions compared to credit cards.