How Much Does a Taco Truck Cost? [2024]

Starting a taco truck business is a dream for many food entrepreneurs. The appeal of bringing delicious tacos to different locations and events, coupled with the growing popularity of mobile food businesses, makes taco trucks a desirable venture. Considering that 8% of food trucks feature Mexican food, it's clear that this cuisine is in high demand, creating a promising business opportunity for entrepreneurs aiming to meet customers’ preferences. 

However, before hitting the road, it’s essential to understand the costs involved in purchasing and operating a taco truck. In this guide, we’ll break down the costs associated with buying a taco truck, from the initial purchase to the additional expenses you should budget for.

Why understanding taco truck costs is crucial

Birria-Landia is one of New York’s most popular taco trucks. Having originally owned a sit down restaurant, there were two big reasons José Moreno and his brother opened food trucks and closed their physical location. Moreno shared, “You need more money. When I start this truck business, I start with $40,000 to $50,000, my small truck cost me $21,000. If I want to do the restaurant, it's nearly $200,000 … And it's less risk with this because if I spend this money on this truck, and then it's not working for a reason, I can move the truck to another part of the city, until I find the right site, or the right neighborhood. If you open a location, you sign the lease, you can not move it. That's the money you spend on the location, if the location is not working you lost everything, you don't get nothing back.”

Knowing how much it will cost to buy and operate a taco truck is crucial for creating an accurate budget and ensuring your business is financially viable. The initial purchase price of the truck is just one part of the equation. There are also costs related to kitchen equipment, permits, licenses, marketing, and ongoing operational expenses. 

Let’s dive into the different cost categories you need to consider.

How much does a taco truck cost to buy?

The cost of a taco truck can vary widely based on several factors, such as whether you buy new or used, the size of the truck, and the type of kitchen equipment it comes with. Below is a breakdown of the typical price ranges you can expect when purchasing a taco truck:

New taco trucks

A brand-new taco truck is a significant investment, but it also offers several benefits, including modern equipment, fewer repairs, and a longer lifespan. New food trucks can be custom-built to meet your specific needs, and you can choose exactly how you want the truck to be outfitted.

• Price range: $80,000 to $150,000

• Pros: Comes with new equipment, full warranties, and a longer lifespan. You can customize the layout and equipment to suit your menu.

• Cons: High initial investment, which could be prohibitive for some entrepreneurs.

Used taco trucks

Purchasing a used taco truck is a more affordable option for many entrepreneurs. While a used truck may require more maintenance, it can still be a great way to start your business without breaking the bank. Make sure to have the truck inspected thoroughly to ensure that all equipment is in good working order before you buy.

• Price range: $50,000 to $80,000

• Pros: Lower upfront cost, faster turnaround time to get your business up and running.

• Cons: May require more repairs or upgrades. Used trucks often come with outdated equipment, and warranties may have expired.

Custom-built taco trucks

If you have a specific vision for your taco truck, you can opt for a custom-built option. These trucks are designed from the ground up to match your menu and business needs. While custom-built trucks are more expensive, they offer full flexibility in terms of design and equipment.

• Price range: $100,000 to $200,000

• Pros: Fully customizable to your needs, can help you stand out in the market with a unique design.

• Cons: High cost and a longer lead time to build and deliver the truck.

Chef Ana of Not Yo Mamas Tacos had her taco truck fully customized with a 2-burner stove, double plan steam table, 50 lb deep fryer, 36” griddle, 48” prep fridge, and a 54” double door upright fridge to accommodate her diverse menu and ensure efficient service at events and pop-ups.

Leasing a taco truck

For those who want to start their taco truck business without a high upfront investment, leasing is another option. Leasing allows you to pay a monthly fee for the truck, which can help with cash flow, but it’s important to understand the terms of the lease agreement.

• Price range: $2,000 to $3,000 per month

• Pros: Lower initial investment, more flexible terms, easier to upgrade to a newer truck after the lease term ends.

• Cons: You do not own the truck, and leasing can become more expensive in the long run.

Additional costs to consider when buying a taco truck

Buying the truck itself is just one part of the cost equation. There are several additional expenses that food truck owners need to budget for when starting a taco truck business.

Kitchen equipment

Your taco truck will need to be fully equipped with all the necessary kitchen equipment to prepare and serve food safely. Common equipment for a taco truck includes:

• Griddle or flat-top grill: Essential for cooking meats, tortillas, and vegetables. Costs range from $1,000 to $5,000.

• Refrigeration: You’ll need a refrigerator and/or freezer to store ingredients like meat, cheese, and sauces. Refrigeration units typically cost between $1,500 and $5,000.

• Fryer: If you plan to serve fried items like churros or chips, you’ll need a commercial fryer, which can cost around $1,000 to $3,000.

• Food warmers: Food warmers help keep cooked items at a safe temperature before serving. These can cost anywhere from $500 to $2,000.

• Prep tables and storage: You’ll need prep tables for assembling tacos and storage for dry goods and supplies. Costs for prep tables and storage vary but expect to spend around $500 to $1,500.

• Point of sale (POS) system: A POS system streamlines transactions, tracks sales, and helps manage inventory efficiently, improving overall customer service and operational efficiency.

Permits and licenses

Running a taco truck requires several permits and licenses, and the costs vary depending on your location. Here are some of the common permits you may need:

• Business license: The cost of a business license depends on your city or state but typically ranges from $50 to $500.

• Health department permit: You’ll need a permit from the health department to ensure your taco truck meets food safety standards. This permit usually costs between $200 and $1,000.

• Food handler's permit: If you or your staff handle food, you’ll need a food handler's permit, which can cost around $100 to $300 per person.

• Vehicle registration and insurance: Your taco truck will need to be registered and insured. Insurance premiums vary, but you can expect to pay between $1,000 and $3,000 annually for food truck insurance.

Fuel and maintenance

Running a taco truck means you’ll need to account for fuel and maintenance costs. Since food trucks are large vehicles that often run for long hours, fuel costs can add up quickly. Additionally, regular maintenance is essential to keep your truck running smoothly.

• Fuel: Depending on how far you travel and how often you operate, fuel costs can range from $200 to $500 per month.

• Maintenance: Regular maintenance, such as oil changes, tire replacements, and equipment repairs, can cost between $1,000 and $3,000 per year. Be sure to budget for unexpected repairs as well.

Marketing and branding

To attract customers, you’ll need to invest in marketing and branding for your taco truck. This includes creating a logo, designing the truck’s exterior, building a website, and promoting your business on social media.

• Truck wrap or paint: A custom truck wrap or paint job is an important part of your branding. A professionally designed wrap can cost between $3,000 and $8,000, depending on the size and complexity of the design.

• Website development: A professional website is essential for showcasing your menu, services, and contact information. Basic website development costs can range from $1,000 to $5,000.

• Social media marketing: Running targeted ads on social media platforms like Instagram and Facebook can help you build your audience. Social media marketing budgets vary but can cost anywhere from $100 to $1,000 per month, depending on your goals.

The success of Veracruz All Natural in Austin is largely due to their strategic marketing, which emphasizes their fresh, handmade ingredients and authentic Mexican flavors, while building a loyal following through social media and strong local engagement at festivals and events.

Financing options for buying a taco truck

If you’re concerned about the upfront cost of buying a taco truck, there are several financing options available to help you get started.

Small business loans

Many entrepreneurs finance their taco truck purchases through a small business loan. The U.S. Small Business Administration (SBA) offers loans specifically designed for small businesses, including food trucks. SBA loans typically have lower interest rates and longer repayment terms, making them a popular choice for new food truck owners.

• Loan amounts: $50,000 to $500,000, depending on your creditworthiness and business plan.

• Interest rates: 5% to 10%, depending on the lender and loan terms.

Equipment financing

If you already have the truck but need to finance the kitchen equipment, equipment financing might be a good option. Equipment loans allow you to purchase the equipment you need and pay it off over time.

• Loan amounts: Based on the value of the equipment, typically $10,000 to $100,000.

• Interest rates: 6% to 12%, depending on the lender.

Set your taco truck up for success

The cost of starting a taco truck business depends on several factors, including whether you buy new or used, the equipment you need, and additional expenses like permits, fuel, and marketing. While the initial investment can be significant, with careful planning and budgeting, you can set yourself up for success in the mobile food industry.

Whether you decide to buy or lease your taco truck, understanding the full scope of costs will help you make informed decisions and build a sustainable business.