Municipal truck fleet operators can expand or upgrade their fleets through a new tax-exempt lease financing program. The International Municipal Lease program from International Finance Group, the financial services arm of International Truck and Engine Corp, provides municipalities and other governmental entities with an alternative for acquiring trucks.
Those eligible for the program include any municipality or political subdivision that can issue tax-exempt securities, including cities, counties, states, school districts, universities, hospitals, not-for-profit [Section 501 (c) 3] organizations, and special-purchase districts.
An alternative to traditional governmental bond financing, the leasing approval process through the International Municipal Lease program takes less time because the procedure is performed at International dealerships, providing a one-stop shopping option. With this tax-exempt leasing option, rental payments are subject to nonappropriation and thus generally do not constitute debt or require voter approval.
Cash down payment is not required, allowing qualified customers to make purchasing decisions now and not wait until the next fiscal year. Payments, structured to meet budget constraints, also build equity for eventual ownership of the truck.
Because leasing periods typically are two to six years, most major repair work is covered under warranty for lease duration, reducing costs and increasing uptime as newer trucks are employed for faster service.