Last week, we discussed the downsides of a fire truck trade-in lease.Also called turn-in or walk-away leases.
The downsides are mostly financial in nature. Leasing (without ownership) provides financial benefits for a quickly depreciating asset like technology or a car. But leasing is a mis-financing of a slowly depreciating item like a fire truck.
Having said that....
Who should use a fire truck trade-in lease?
- Fire departments who aren't concerned with the financial costs and lack of flexibility of a trade-in lease.
- Departments who want to force a replacement cycle upon unwilling political leadership. In other words, if your leaders aren't replacing the trucks timely, a trade-in lease will require replacement at set periods.
- Departments who are able to maintain the trucks according to the leasing contract.
- Departments who are comfortable with a continuous supply of trucks from the same manufacturer.
SummaryThere are some upsides to using a fire truck trade-in lease. However, none of them are financial in nature. If your department fits the above description, a fire truck trade-in lease may be right for you.
John R. Hill