How the Municipal Lease-Purchase Plan works – what and who’s eligible
What vehicles are eligible?
As long as they’re used only for essential government work, these types of vehicles (up to 1 year old) are eligible:
- New or used passenger cars of any make or model
- Light- or medium-duty trucks
- Certain up-fitted vehicles
Are there mileage restrictions?
Since your municipality will own the vehicles at the end of the term, there are no mileage restrictions. Complete eligibility requirements can be found in the Municipal Lease-Purchase Plan FAQs.
Can I speak to someone about this now?
If you’d like to talk to someone about our Municipal Lease-Purchase Plan, please contact your local dealer. They’ll help find out if it’s the right program for you.
Qualified, tax-exempt municipalities for federal tax purposes (including states or political subdivisions of state governments) are eligible:
- Police departments
- Fire departments
- Sheriff departments
- State universities
- School districts
These entities must qualify under Section 103 of the IRS code.
Tax-exempt status alone does not automatically qualify an entity as eligible.
Here are some examples of tax-exempt, non-municipal entities that don’t qualify:
- Private hospitals
Federal government agencies also do not qualify.
Municipalities should consult with their legal departments regarding tax-exempt status.
Rates, residual, and security deposit
- Tax-exempt interest rates
- $1 residual
- No security deposit required