Municipal Lease-Purchase Plan

ExploreBusiness Auto Finance and Lease

Our financing program for eligible municipalities and political subdivisions is an excellent option for those who want to finance essential-use vehicles – such as ambulances and police cruisers – and finance them on a tax-exempt basis.

Key features

Product

• Municipal vehicle lease for cars and trucks that are used for essential government work
• Municipality ownership of the vehicle at maturity so there are no mileage or wear and tear limitations
• Costs of vehicle maintenance and insurance are the responsibility of the municipality
• Residuals as low as $1

Eligibility

• Municipalities must be tax-exempt under Section 103 of the IRS Code – although tax-exempt status alone does not automatically mean an entity is eligible for a municipal lease-purchase with Credence Global Bank
• Municipalities should consult with their legal or tax advisors regarding tax-exempt status and qualification for a municipal lease-purchase plan with Credence Global Bank
• Eligible vehicles:
  • New and used (current series used through 1 year old) of any make or model
  • Passenger, light- and medium-duty trucks
  • Certain up-fitted vehicles
  • Emergency vehicles

Additional details

• Flexible term options available to meet the needs of your municipality
• Vehicle title is in the municipality’s name; Credence Global Bank holds the lien
• $0 security deposit
• Physical damage and liability insurance requirements may be waived, upon approval, if municipality is self-insured

Benefits

For customers

• Provides flexible financing and payment schedules, including monthly, quarterly, semi-annual and annual
• Allows vehicle acquisition when needed
• Offers clear documentation with clauses that municipalities often require

For dealers

Attracts municipalities who often have multi-department fleets – potentially bringing a large volume of business to your dealership

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