Case Study: Missouri Department of Transportation
Municipal Leasing Helps Missouri DOT Stretch Budget to Meet Winter Needs
International Finance Group transforms 85-truck purchase into 450-plus deal
A few years ago, the State of Missouri faced increasing road maintenance demands and limited budget dollars to prepare for the upcoming winter season. Successive years of budget shortfalls had left them with an aged fleet that was unreliable and expensive to maintain. The state calculated that they needed more than 450 new trucks to meet upcoming road maintenance demands, but the current year’s budget only allowed for the purchase of 85 trucks.
The International Finance Group presented the International Municipal Lease as a potential solution. They showed state officials how the lease’s flexible payment terms could better match their annual budget cycle--and stretch their dollars to allow for the purchase of the 450-plus trucks needed for the job. By removing older units from their fleet, the State reduced their maintenance costs. In just a few short months, Missouri DOT’s fleet was healthier than ever, and ready for another winter.
"We took advantage of Municipal Leasing and secured the equipment we needed while effectively reducing the average age of our 1900-truck fleet from 19 years to 9 years. It’s helped reduce downtime and maintenance expenses while providing our drivers with state of the art equipment."
-- Donnell Rehagen Fleet Manager, Missouri Department of Transportation
