6 minute read

Buying a used food truck without buying a problem

What to inspect, which failures are expensive, what a private party purchase requires, and how a used unit is financed.

The short answer

A used food truck in service condition commonly runs 40,000 to 90,000 and can be operating within weeks. The cost risk sits in the hood and suppression system, the generator, and the refrigeration line. Financing a used unit is standard, with private party purchases requiring an inspection and a bill of sale.

Inspect the kitchen before the engine

A used truck has 2 machines in it and they fail differently. Engine and drivetrain problems are quotable at any shop. Kitchen system problems are the ones that produce a truck that runs fine and cannot be permitted.

  • /Fire suppression: check the last certification tag and whether the system matches the current cooking line
  • /Hood and exhaust: confirm CFM matches the equipment installed, not the equipment it was built for
  • /Generator: hours, service records, and whether it carries the full cold line plus the cooking line at once
  • /Water system: tank capacity against local code, pump condition, and water heater function
  • /Electrical: panel load, shore power inlet condition, and any visible non permitted modification
  • /Refrigeration: pull down time on a warm day, not just whether it turns on

Get the paperwork before the deposit

Ask for the title, the most recent health inspection report, the suppression certification, and any build documentation. A seller who has none of it is selling a unit that will need a full plan review anyway.

Confirm the unit can be permitted in your jurisdiction as configured. Out of state trucks routinely miss local water tank or hood requirements.

What a used unit actually costs to finance

Used equipment finances on shorter terms than new because the collateral has less remaining life, commonly 36 to 60 months, and older units more often carry a 10 to 20 percent down payment.

Private party purchases are financeable with more lenders than operators expect. The requirement is an inspection and a bill of sale so the funder can verify what is being bought and who is being paid.

Budget the refurbishment separately

Plan for 5,000 to 20,000 of correction work on a used unit: suppression recertification, a refrigeration repair, a wrap replacement, and small wares.

That work is financeable alongside the purchase when it is quoted upfront, and it is a cash expense when it is discovered after closing. Get the inspection first for that reason alone.

Calculator

Equipment payment and total cost

Enter the quote, the rate you were offered, and the term. The payment is the standard amortizing payment, and the total cost is what leaves the business above the amount financed.

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$

Programs commonly cover 80 to 100 percent. Leave at 0 if none is required.

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Use the rate on the written offer, not an estimate.

Monthly payment
Amount financed
Total of payments
Total cost of financingEverything paid above the amount financed.
Cost per day of the term

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Step 01 of 03 · Your operation

By submitting, you agree that Foody Finance may share your funding request with more than one independent funding partner, and that those partners may contact you by phone, text, or email, including through automated technology. We are an independent broker compensated by funding partners when a referred account activates. We are not a lender and do not make credit decisions.

A specialist reviews every request and reaches out the same business day

The arithmetic

payment = P x i / (1 - (1 + i)^-n), where P is the amount financed, i is the annual rate divided by 12, and n is the number of monthly payments. Total cost = (payment x n) - P.

Sources

  1. 1Amortizing payment formula: P x i / (1 - (1 + i)^-n)Standard time value of money identity. The same closed form used by the PMT function, with i as the monthly rate and n as the number of monthly payments.
  2. 2Bank prime loan rate, the base most business term financing is priced againstFederal Reserve, H.15 Selected Interest Rates. Published daily by the Federal Reserve. Enter the current prime rate when pricing a variable rate offer.
  3. 3Annual percentage rate definition, 12 CFR 1026.22Consumer Financial Protection Bureau, Regulation Z. APR is the nominal annual rate that discounts a payment stream back to the amount advanced. We solve it numerically from the payment schedule and multiply the periodic rate by the number of periods per year.

Estimates, not offers: Amounts, terms, and funding times are estimates based on programs commonly available in food service. Actual terms vary by program, lender underwriting, time in business, revenue, and credit profile. Nothing here is an offer of credit or a guarantee of approval.

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Related questions

How much is a used food truck?

A used unit in service condition commonly runs 40,000 to 90,000, with price driven by the kitchen package and remaining life rather than mileage alone.

Can you finance a used food truck?

Yes. Used units finance as equipment, commonly on 36 to 60 month terms, with older units more often requiring 10 to 20 percent down.

Can I finance from a private seller?

Many lenders allow it with an inspection and a bill of sale. Dealer and builder purchases are simpler and more widely accepted.

What should I inspect first?

The hood, the fire suppression certification, the generator hours, and the refrigeration pull down. Those 4 carry the expensive failures.

What is a fair mileage for a used food truck?

Mileage matters less than generator hours and kitchen condition, because the truck idles far more than it drives. Service records beat the odometer.

Should I budget for repairs on top of the purchase?

Yes. Plan 5,000 to 20,000 for suppression recertification, refrigeration work, wrap, and small wares, and quote it before closing so it can be financed with the unit.

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Step 01 of 03 · Your operation

By submitting, you agree that Foody Finance may share your funding request with more than one independent funding partner, and that those partners may contact you by phone, text, or email, including through automated technology. We are an independent broker compensated by funding partners when a referred account activates. We are not a lender and do not make credit decisions.

A specialist reviews every request and reaches out the same business day

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