Facts and fiction about fire apparatus lease purchase agreements

Is a lease purchase agreement the right financing method for your new apparatus?
If you need to borrow funds, a lease purchase agreement is probably the most cost-effective and flexible tool available.

Some facts about lease purchase agreements:

• Lease purchase agreements are used by thousands of departments each year to finance apparatus.
• They are a time and legal-tested method to finance essential items such as fire apparatus.
• Volunteer fire departments can use lease purchase agreements to meet IRS rules to finance fire apparatus.
• They usually have little or no fees.
• They can be used in most states without the payment being considered debt and therefore be subject to debt limitations.
• They have very flexible terms.
• You own the truck with a lien on it just like a loan. Once you pay off, the lien is released from the title.
  

Some fictions about lease purchase agreements:

• You have to turn the apparatus into the bank after you complete the payments.
• You can't pay extra or pay off early.
• You never own the apparatus.
• They are not eligible for tax-exempt interest rates.

For more detailed information about how lease purchase agreements work, go to my article by clicking here.

Summary

Don't get fooled by the misconceptions about lease purchase agreements. Most misconceptions come from the use of the word "lease" which is not used in the traditional sense. My article above provides a short history why the word lease is used.


Stay safe!

John R. Hill
Apparatus Budgeting Consultant
ENVIZION Financial
www.envizionfire.com