Purchasing a fire apparatus is a very expensive proposition. Let our staff inform you of options available to you from obtaining discounts for prepayments or opportunities that may be available to you through leasing options. Our staff can help you ask the right questions to see if these options are good opportunities for you.
If your purchasing authority wants to explore lowering their overall cost of the apparatus by making prepayments on the apparatus, we can provide you for any kind of prepayment option that you wish. The rates of return for the credit are very competitive with current market rates.
While Fire & Safety Services will work with any leasing company the purchasing authority chooses to work with, Pierce Financial Solutions works in conjunction with PNC Equipment Finance to provide the industry’s most extensive line of municipal tax-exempt lease plans for your apparatus purchase. Much like we tailor the apparatus design around the needs of the department, we do the same thing with leasing options – with industry-leading tax-exempt rates, zero documentation fees, and flexible payment plan, we make it easy to get behind the wheel of your new Pierce apparatus. Most plans offer one year deferred payment plans that can be initiated either at time of lease signing or delivery of apparatus, depending on the needs of the purchasing authority.
Types of plans:
- Lease Purchase Plan – With this plan, you can purchase the apparatus gradually over times. This allows you to use available capital for operations or other needs. At the end of the lease, you can purchase the unit for $1. Terms for this plan can range from 2-10 years in accordance to New Jersey Regulations.Choose this lease if you prefer ownership but need to spread capital costs over time.
- Turn-In Lease Plan – In a turn-in lease plan, the lease contains a “balloon payment” for the estimated resale value of the apparatus at the end of the lease. In New Jersey, the department then has two options:1) Purchase the apparatus by paying off the “balloon payment.”
2) Refinance the “balloon payment.”Terms for this plan run from 2 to 10 years. These plans often contain mileage and apparatus provisions, with 10,000 or 15,000 annual mileage options available.Chose this kind of plan if you want to pay for the use of the apparatus over the lease term, but need a flexible, cost-effective fleet management program.
As with all financing options, you need to make sure your program complies with the State’s Local Finance Board’s additional criteria.
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