Municipal Lease-Purchase Plan

ExploreBusiness Auto Finance and Lease

Our financing program for eligible municipalities and political subdivisions is an excellent option for those who want to finance essential-use vehicles – such as ambulances and police cruisers – and finance them on a tax-exempt basis.

Key features


  • 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
  • Residuals as low as $1


  • 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) of any make or model
    • Passenger, light- and medium-duty trucks
    • Certain up-fitted 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


For 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 dealers

Attracts municipalities who often have multi-department fleets – potentially bringing a large volume of business to your dealership

Get a side-by-side view of finance products

Training courses

From the Ally Performance Development Center:

  • Commercial Services Business Vehicle Certification

Access training to get started.

Quick tools and resources


Contact us

  • 1-877-602-3343
  • Mon – Fri, 9:00 am – 7:00 pm ET