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The Municipal Lease Option
Written by Kristin Griffin
Business Vehicle Finance (BVF), a division of DaimlerChrysler Truck Financial, is an innovative resource for law enforcement vehicle financing. This is an easy way to get both vehicles and the upfit equipment financed, and to end up owning the vehicles at the end of the lease. The Municipal Lease contract includes a non-appropriation clause that allows governmental entities to terminate the lease if funds cannot be appropriated during the next fiscal period.
BVF offers a lease product specially designed for municipalities, the Municipal Lease Product. This product allows all governmental entities, i.e., local communities, townships, counties, and states to acquire tax-exempt interest rates as an alternative way to meet their equipment needs. These rates are generally lower than commercial rates and this helps municipalities achieve a higher level of service with a smaller amount of capital.
DaimlerChrysler Truck Financial has been offering the Municipal Lease product since 1997. Our Municipal Lease product has been used by fire departments, police departments, park districts, and school districts. The equipment leased includes all types of equipment from police vehicles, school buses, fire trucks and ambulances to the multiple fleet vehicles of all sizes.
BVF offers a consolidated bill to customers with more than one leased vehicle. This would allow you to write one check per month to pay for multiple vehicles while getting a complete breakdown of each vehicle loan balance. We have the ability to use a Vehicle Identification Number, a stock number or driver name to identify each vehicle on your bill.
BVF can handle the entire vehicle financing for municipal borrowers by customizing the lease to meet their individual needs. We understand the public bid process, and have the ability to make finance packages to match the individual needs of departments. The BVF municipal lease acts as an installment sales contract with payments consisting of principal and interest. Municipal borrowers can choose monthly, quarterly, semi-annual, or annual payments.
At the end of the lease agreement, the vehicle becomes the property of the municipality for $1 and there are never any excess mileage or wear and tear charges. The vehicle is titled in the name of the municipality since they are the owner of the equipment.
Another advantage of the Municipal Lease program is the ability to include virtually any level of equipment in the lease payment. For those agencies looking for financial options for both the initial vehicle purchase and the upfitting of the latest technology, which can run up to half the cost of the vehicle, this is a solution.
Virtually any “hard equipment” can be included in the lease. This can include lightbars, interior lighting, gun locks, sirens, partitions, push bumpers, radar/lidar, in-car video cameras, computer mounts, center consoles, trunk trays, and even graphics. If it is physically attached to the car, it can probably be rolled into the lease.
This allows the department to upgrade to high-technology communications hardware and low amp-draw LED emergency lights without major initial outlays since it is amortized over the length of the lease. This also allows the increasingly expensive labor portion of the upfitting to be included in the lease.
Quite often, the dealer can provide your department with a turnkey package that includes the vehicle, the equipment, and the installation. The total package, with just one payment, is ready to go when the car is picked up. The savings to the department in time, logistics, and bookkeeping make this a real benefit.
The municipal contracts are prepared by BVF and sent directly to the end-user for signatures in order to make contracting fast and easy. The documentation required to complete a Municipal Lease includes 1) Municipal Credit Application, 2) Lease Purchase Agreement, 3) Legal Opinion for deals over $400K, 4) Resolution of Governing Body, 5) Insurance Certificate, 6) the 8038-G IRS Form signed by customer, and 7) Copy of buyer’s order signed by customer. A tax-exempt retail installment contract has already been approved in many states and may also be available.
The tax-exempt interest rate results in low cost financing, for which most municipalities, county departments, and school districts will qualify. There are a variety of flexible payment options to allow for municipalities to acquire vehicles and stay within their annual approved budgets. BVF offers a simple credit application process and handles all documentation making it a very easy process handled in timely manner.
Kristin Griffin is a Commercial Dealer Relations Manager with Business Vehicle Finance, a division of DaimlerChrysler Truck Financial. She may be reached at firstname.lastname@example.org.
For more information, please contact your Commercial Dealer Relations Manager.
Kristin Griffin – Midwest: (630) 649-8532
Tom Pierce – Great Lakes: (630) 240-3779
Tom Meeks – West: (630) 300-4045
Naeem Morris – Mid Atlantic: (630) 995-0728
Martin Collura – Northeast: (845) 527-7973
Sandy Schick – Southeast: (630) 258-9288
Bryant Reiff – Denver: (630) 995-0729
To get a municipal lease quote, please contact a member of our Fleet Department:
Fritz Wilson at (630) 724-3011
Anthony Defalco at (630) 724-3020
Tracy Weigel at (630) 724-3017
Published in Police Fleet Manager, Jan/Feb 2006
Rating : Not Yet Rated
Related ProductsBVF (Business Vehicle Finance)Financial ServicesLeasingMLP (Municipal Lease Product)Police VehiclesUpfitting
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