Frequently Asked Questions
What are the benefits?
The benefits of Municipal Leasing include:
- Competitive Interest Rates – an alternative to bond financing
- Flexible Payment Terms – transactions structured to meet budget needs
- No Down Payment Required – 100% of equipment cost can be financed
- Simple – concise documents help speed transaction completion
- No Debt is Created – a non-appropriations clause is included in every lease therefore, voter approval is generally not required
- Equity is built – with our standard lease, you will own the truck at the end of the lease term for a 1$ payment.
What is the rate?
The International Municipal Lease is a tax-exempt lease. The interest component is not subject to tax therefore the rates are significantly lower than commercial loans.
What if my budget dollars are not approved to make the payments?
If for any reason budget dollars are not approved to make subsequent payments during the term of the lease International will take the truck(s) back with no penalty to the government agency.
Who is eligible?
Any issuers that qualify under Section 103 or Section 501 (c)(3) of the Internal Revenue Code. Typical agencies include:
- Cities
- Counties
- States
- Universities
- School Districts
- Hospitals
- Various other Authorities and Districts
What can I finance?
Any International truck chassis or school bus and the equipment or body attached to it. Any competitor’s truck chassis and the equipment attached to it provided that more than 50% of the truck chassis financed are International truck or IC school bus brand chassis.
What documentation is required?
Typically we will require a completed credit application along with 2 Fiscal year end Financial Statements. That’s it.
What happens at the end of the lease?
In most cases the government agency purchases the vehicle for $1 and title is transferred.
What questions should I ask when comparing other municipal lease programs?
- Is my interest rate actual, or apparent?
- Request an amortization schedule to validate when your first payment is due and when interest starts.
- Ask if the rate is locked or floating, if floating can it be locked? International Finance offers both.
How do I learn more?
Contact your local International dealership for a free quote or municipal lease consultation.
