What options are there when borrowing money for a fire truck?
You have a lot of choices and options when buying a fire truck. Many more than when you borrow money for a car or house which offer standard terms and the only difference is the rate and fees.
Here are some common fire truck financing options:
- Term. This is the amount of time you have to pay back the money you borrow. For fire trucks, the options are from 3 to 15 years.
- Payment Frequency. This is how often you pay the payment. You can pay monthly, quarterly, semi-annually (twice a year) or annually (once a year).
- Down payment. This is what you are required to invest in the truck along with the loan. For fire trucks, no down payment is usually required.
- Payment Timing. This is when you pay the payment each year. You can schedule a payment anytime that fits your budget.
- Skip Year Payment. You can skip an entire budget year before making your first payment.
- Step Payment. You can have lower payments in the beginning for common circumstances such as you are paying off an existing loan, you are waiting for new tax revenues to be collected, or you are waiting for budget increases.
SummaryThere are many choices and options when financing a fire truck. It makes fire truck financing much more complex. Each choice can either cost or save your department thousands of dollars.
John R. Hill