Fire truck financing is more complex than car or house financingOver the next few weeks, we'll share what you need to know.
The basics of fire truck financing
First, fire truck financing is usually in the form of a lease purchase agreement.This type of agreement is 99% like a loan with one key difference. You have the option to cancel the agreement each year. By doing this, most departments don't have to count the payment against their debt limitation or go through the legal process of borrowing money (per state legal requirements).
Second, you have a lot more choices than car or house financingThis is key to knowing how to avoid wasting money. You can chose whether to pay monthly, quarterly, semi-annually, or annually. You can chose when you want to start payments. You can chose the amount of your down payment. You can chose how long you want to pay off the fire truck, between 3 and 15 years.
Lastly, you qualify for lower, tax-exempt interest ratesSince you are a government agency (or perform a public function if you are a volunteer fire department), you don't have to pay higher interest rates like a person or corporation).
SummaryThere is lot to know about financing a fire truck. Over the next few weeks, we'll share what you need to know and how it helps you.
John R. Hill