Food Trucks: Should You Rent or Buy?

If you’re eyeing the food-truck scene but balk at the idea of sinking $50,000 to $100,000 of your savings into a shiny new rig, there’s an alternative that might make sense: renting. Renting a food truck, offers a way to dip your toes into the business with less financial risk. Instead of coughing up a hefty down payment, you’re looking at a more manageable monthly rate—usually somewhere between $2,000 and $3,000.

This option doesn’t just save your bank account balance, it can give you the freedom to experiment. Want to swap out menu items? Go for it. Curious about testing a new marketing angle? No problem. Renting allows you to figure out whether the food-truck life is really for you, without the long-term commitment. And if you decide you don’t want to run a food truck business, you can turn in the keys at the end of the rental agreement that’s often 3 – 12 months.

To learn more about the pros and cons of buying versus renting Food Truck Empire (FTE) connected with Josh Hiller of RoadStoves, a company that rents out food trucks. Josh’s company has their hands in both the rental and manufacturing side of concession trucks building units for the Food Network’s breakout hit “The Great Food Truck Race”and the “Master Chef” series on Fox. Don’t invest in a food truck until you read this Q/A interview about renting, leasing, and buying a food truck.

FTE: What are some of the advantages of renting a food truck? 

Josh Hiller: As someone who’s been in the food truck industry for years, I’ve seen firsthand the advantages of renting. Here’s why renting might be the smarter move if you’re just starting out.

• Financial Flexibility: Buying a food truck outright can set you back anywhere from $50,000 to $100,000, which is a significant investment pretty much everyone. Renting, on the other hand, typically requires a monthly payment of $2,000 to $3,000. This lower upfront cost allows you to allocate funds to other critical areas, such as marketing, ingredients, or permits.
• Test Before You Commit: Renting gives you the opportunity to experiment with your menu, branding, and marketing strategies without the long-term commitment. If your first concept doesn’t resonate with customers, you have the flexibility to pivot and try something new. This is a luxury you don’t really have if you’ve already committed to buying a truck.
• Minimize Financial Risk: Let’s face it—starting a new business is inherently risky. By renting, you limit your financial exposure. If the food truck business turns out to be not what you expected, or if the market doesn’t respond well to your concept, you can walk away without the burden of a large debt or a vehicle you no longer need.
• Less Upkeep: When you rent, the responsibility for major repairs and maintenance often falls on the rental company. This means you won’t be caught off guard by unexpected repair costs, which can be a significant burden for new operators trying to manage cash flow.
• Easier Exit Strategy: If you don’t like a food truck you’re renting, you can hand in the keys after a the end of the rental agreement. Selling a food truck that you own can be a long process. First, the average citizen doesn’t want to run a food truck. Second, even if you find someone who wants to run a food truck, they might not want to buy your food truck because it’s outfitted to serve burgers, pizza, or some other menu they don’t want to serve.

To be completely honest, in my experience once people get a real understanding of what’s involved in owning a food truck (the maintenance costs, dealing with mechanics, break-downs, dealing with the Health Department, commissary costs, etc.) they generally prefer to stay as renters.

However, on the traditional “taco truck” / “roach coach” side, you see far more renters become owners. That’s because they’ve spent years in this business, they know it well, and they’re committed to it for the long haul. Remember, even if you finance the purchase of a truck, you’re looking typically at 5 years before you pay off the truck, so it’s not until the 6th year and beyond that you’ll really see the financial benefit of owning.

FTE: How much does it cost to rent a food truck per month?  

Josh Hiller: Rental costs generally vary depending on the term / length of the lease. Assuming a person commits to a long term lease (figure 6 months or more), rentals should run ballpark $2,000 to $3,000 per month. That does not include commissary costs (which generally run around $1,000 to $1,200 per month extra). Short term rentals are more costly because of risk, turn-over, etc.

This is a RoadStoves pizza truck rental for Joe’s Pizza in California.

Here’s a breakdown of some of the variable costs associated with renting a food truck. We worked with Hiller to come up with these rental estimates. As you can see, there’s are numerous expenses associated with renting out a truck.

FTE: Where can I go to rent a food truck?

We have options for rentals. At RoadStoves we rent out our own fleet of trucks, and we’ve actually just launched a new website where all food truck owners can list their trucks available for rent from our website. The platform that connects food truck renters direct to food truck owners. When renting a truck just keep in mind who’s responsible for costs like maintenance, insurance, permits, commissary utilities, cleaning, etc.

If you’re looking to rent a food truck, there are a few avenues beyond established rental companies like RoadStoves. One option is to connect with local commissaries or shared kitchens, as they often have ties to food truck owners who might not be using their vehicles full-time. These facilities can sometimes point you toward available rentals within their network.

Baby’s Badass Burgers in LA leases their truck from RoadStoves.

Another approach is to reach out directly to restaurant or catering businesses that own food trucks. They might be open to renting out their trucks during slower periods. Lastly, don’t overlook your personal network—sometimes a peer-to-peer rental agreement with someone you know can be a flexible option, though it’s important to have a clear contract in place to cover responsibilities like maintenance and insurance.

FTE: What are disadvantages of renting food trucks?

Josh Hiller: As someone who’s built a lot of food trucks, I’ve seen both sides of the rent-versus-buy debate. While renting has its perks, there are some significant downsides to think about too.

• Higher Long-Term Costs: One of the biggest arguments for buying a food truck is that the monthly loan payment to own it might be roughly the same—or even less—than what you’d pay to rent. If you’re paying $2,000 to $3,000 a month to rent, those payments add up quickly. For example, 12 months of $3,000 per month payments adds up to $36,000. After a four – five years renting, you could find yourself spending as much or more than what it would’ve cost to own a truck outright.
• No Equity Building: When you rent, all those monthly payments don’t build any equity. You’re essentially paying for the use of the truck, but at the end of the rental period, you have nothing to show for it. When you buy, each payment goes toward owning a tangible asset that has value. Even if you decide to exit the business, you can sell the truck and recoup some of your investment.
• Restricted Modifications: Another downside of renting is that you might be limited in how much you can customize the truck. Food trucks often need specific layouts and equipment to match a vendor’s unique concept, and rental trucks might not offer the flexibility you need. Owning your truck allows you to tailor it exactly to your needs, without worrying about rental agreements or returning the truck in its original condition.

In conclusion, while renting a food truck can be a good option for testing the waters, it’s important to consider the long-term implications of renting.

FTE: What if you get into an accident with a rented food truck? 

It’s not something anyone likes to imagine, but accidents do happen, and you need to be prepared for this risk of running a food truck. Before you ever hit the road, you’ll need to sign a rental agreement or contract. This document will outline all the responsibilities—yours and the rental company’s. It’s crucial to read this carefully and understand every clause because it’ll dictate what happens in the event of an accident.

If you’re involved in an accident while renting a food truck, the first thing to know is that you’re responsible for reporting it immediately, both to the rental company and to your insurance provider. The rental agreement will typically detail the process for handling accidents, including who covers the damage and how repairs are managed.

Who’s Responsible for Insurance?

This is where things can get a bit complicated. In most cases, you’re responsible for securing insurance coverage for the food truck while it’s in your possession. This includes liability insurance, which covers any damage or injury you might cause to others, and physical damage insurance, which covers the truck itself. It’s not uncommon for insurance coverage on a food truck to range from $500 – $1,200 per month depending on the coverage level and where you operate.

The rental company will usually have insurance on the vehicle, but this often only covers specific situations, like when the truck is in their possession or being transported by their staff. Once you drive it off the lot, it’s on you to make sure the truck is properly insured. If an accident occurs and you don’t have the right coverage, you could be on the hook for significant out-of-pocket expenses.

Who’s Responsible for Service and Maintenance?

Routine maintenance, like oil changes and tire rotations, might still fall under the rental company’s responsibility, but again, this depends on the rental agreement. However, if the truck needs repairs due to an accident, the responsibility generally falls on you, the renter. You’ll need to coordinate with the rental company to get the truck repaired, and you might be responsible for covering the costs, depending on the insurance coverage you have in place.

It’s also worth noting that if the truck is out of commission due to an accident, you could still be responsible for paying the rental fees during the time it’s being repaired. This is another reason why having comprehensive insurance is critical.

FTE: What’s the most frequently asked question you receive from people who want to start a food truck? 

Josh Hiller: The most common question is some form of “how much money do food trucks make?” Honestly I don’t like answering that question directly because we really have to talk through the fact that, like any business, some will fail, some will break even and simply stop because it’s too much work for little or no return, and yes some will turn a profit.

So truly if you factor in the ones that go out of business, honestly the chances are there isn’t a huge pot of gold at the end of the rainbow. It’s similar to the restaurant business. But, yes there are the few that succeed financially beyond the odds.

Folks Lining Up at a Food Truck in downtown St. Paul, Minn.

FTE: What information should people organize before approaching a manufacturer to build a custom truck?

Josh Hiller: You should know what equipment you want in the truck, that really determines the size of the truck you need. You should also find a manufacturer that’s built trucks for the health department jurisdiction(s) that you want to operate in. Generally the manufacturer will handle the health department approval process. But again, as in any business, you should know yourself what the health department requires because at the end of the day it’s your business and you shouldn’t rely on others to take care of it.

Buying a truck is a big financial investment. Like in any business, you should know the business climate / future well before investing large sums of money in it. So, if someone has been in the food truck business for a little while, seen the ebs and flows, learned about their market, their revenue, etc., at that point it can be time for investing in the purchase of a truck (assuming they’re committed to it for at least the next five to ten or so). For anyone just starting out in the food truck business, I’d HIGHLY recommend renting so they can get an idea of whether the income is there, if the type of work is for them, and generally what it’s like operating a food truck through its business cycles.

FTE: When should you take the leap and buy a food truck of your own? 

Josh Hiller: Generally speaking, I’d say once you have at least 2 to 3 years under your belt running your food truck. At that point you’ve gone through a couple winters, dealt with some competition, learned about the mechanical side of these trucks, understand the type of work, and hopefully built some kind of consistent following to where you have some predictability (as much as you can in any business) of how much income you can expect on a yearly basis.

The beauty of renting is that the risk is contained. If your concept doesn’t quite catch fire or if you find that running a food truck isn’t your dream after all, you can return the keys and walk away with minimal loss. But if your idea does take off, renting gives you the chance to justify making a bigger investment down the line.