Municipal Lease-Purchase Plan
Key Features
Product
- Municipal vehicle lease for cars and trucks that are used for essential government work
- Municipality ownership of the vehicle at maturity so there are no mileage or wear and tear limitations
- Costs of vehicle maintenance and insurance are the responsibility of the municipality
- $1 Residual
Eligibility
- Municipalities must be tax-exempt under Section 103 of the IRS Code – although tax-exempt status alone does not automatically mean an entity is eligible for a municipal lease-purchase with Ally
- Municipalities should consult with their legal or tax advisors regarding tax-exempt status and qualification for a municipal lease-purchase plan with Ally
Eligible vehicles:
• New and used (current series used through 1 year old)
• Passenger, light- and medium-duty trucks
• Certain upfitted vehicles
• Emergency vehicles
Additional details
• Flexible term options available to meet the needs of your municipality
• Vehicle title is in the municipality’s name; Ally holds the lien
• $0 security deposit
• Physical damage and liability insurance requirements may be waived, upon approval, if municipality is self-insured
Benefits
For your customers
• Provides flexible financing and payment schedules, including monthly, quarterly, semi-annual and annual
• Allows vehicle acquisition when needed
• Offers clear documentation with clauses that municipalities often require
For your dealership
Attracts municipalities who often have multi-department fleets – potentially bringing a large volume of business to your dealership.