Help Center

Municipal Lease Purchase Plan FAQs

  • What is the Ally Municipal Lease-Purchase Plan?

    The Ally Municipal Lease-Purchase Plan is a retail financing program for eligible municipalities or political subdivisions who want to own essential-use vehicles and finance them at favorable, tax-exempt interest rates.

  • What are the advantages of the Municipal Lease Purchase Plan?

    For customers:

    • Provides flexible financing and payment schedules, including monthly, quarterly, semi-annual and annual
    • Allows vehicle acquisition when needed, not just certain times of year
    • 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.

  • What kinds of organizations are eligible to enter into the Municipal Lease-Purchase Plan?

    The plan is ideal for municipalities seeking to finance vehicles for city government business.

  • What kinds of tax-exempt organizations are eligible for the Municipal Lease-Purchase Plan?

    Municipalities must be tax-exempt under Section 103 of the IRS Code; however, tax-exempt status alone does not automatically mean an entity is eligible for a municipal lease-purchase with Ally

    Examples of tax-exempt, non-municipal entities that do not qualify are churches, charities, and private hospitals. Federal government agencies also do not qualify.

    Municipalities should consult with their legal or tax advisors regarding tax-exempt status and qualification for a municipal lease-purchase plan with Ally.

  • Is the Ally Municipal Lease-Purchase Plan open to any tax-exempt organization?

    No. Entities must be a qualified political subdivision of a state government. They must qualify as tax-exempt under Section 103 of the IRS Code. However, tax-exempt status alone does not automatically qualify an entity as eligible for a municipal lease-purchase with Ally. Examples of tax-exempt, non-municipal entities that do not qualify are churches, charities and private hospitals. Federal government agencies also do not qualify.

    Municipalities should consult with their legal or tax advisors regarding tax-exempt status and qualification for a municipal lease-purchase plan with Ally.

  • What vehicles are eligible for the Ally Municipal Lease-Purchase Plan?

    The following vehicles are eligible for the Ally Municipal Lease-Purchase Plan:

    • New and used passenger cars of any make or model
    • Light- and medium-duty trucks
    • Certain up-fitted vehicles
    • Emergency vehicles
  • What is the maximum term for an Ally Municipal Lease-Purchase Plan?

    For new vehicles:

    • Medium-duty trucks – 5 years
    • Passenger cars – 4 years
    • Light-duty trucks – 4 years
    • Police and public safety vehicles – 3 years or 4 annual payments

    For used vehicles:

    • Current series used through 1 year old – 3 years
  • Can I make modifications to a vehicle leased through the Ally Municipal Lease-Purchase Plan?

    Yes. The municipality owns the vehicles at maturity so there are no limits to wear and tear or modifications.

  • Are there tools available for working with the Municipal Lease Purchase Plan?

    Yes. To obtain quotes and generate contracts, access the Municipal Quote and Document Generator by logging in to the Dealer Portal.

    For additional tools and resources, please see the Business Finance and Lease Quick Links document.

  • Who do I contact with questions about the Ally Municipal Lease-Purchase Plan?

    Call your local Ally Commercial Product Specialist at 1-800-471-4622, Monday - Friday, 8:30 am - 8:30 pm ET.