Municipal Lease Purchasing Program
Program Overview: Municipal Finance Program is the ideal approach to acquiring capital equipment within tight budget constraints. Our Municipal Lease Plan combines the benefits of leasing and purchasing with special features designed to handle the challenges facing municipal fleet managers. Municipal customers avoid major cash outlays and long-term obligations. Dealers enjoy a relationship that has potential to produce additional leases and sales for years to come.
How It Works: The Municipal Finance Program is a lease/purchase agreement that resembles a conditional sale or an installment purchase transaction. The program is a source of medium-term, tax-exempt financing designed as an alternative source of funds to acquire capital equipment. The lessee makes periodic payments of principal and interest and obtains ownership of the equipment for $1.00 at lease maturity. The interest portion of the periodic payments to the lessor is exempt from federal income tax; therefore, the interest rates are low “tax-exempt” rates. The transaction is considered a current obligation of the lessee — although the agreement may cover many years.
– Low tax-exempt rates and more product for their budget dollars
– Most capital expenditures can be financed (i.e., vehicles, service plans, truck bodies, accessories, computer systems and much more)
– Flexible payment terms
– Considered an operating expense in most states
– No security deposit, no hidden fees, no mileage restrictions
– Avoid high maintenance costs associated with older vehicles or equipment
– $1 purchase option at end of lease
For more information or if you have any questions, please contact us. We will be happy to help answer any questions.