Buses are an important part of transportation for countless people around the world. Beyond schools and contractors which use buses as a part of everyday business, buses and coaches are also essential for thousands of churches and other smaller organizations.
But, buying a bus isn’t always possible in a world with ever-tightening budgets. With deep cuts being made in school and business budgets, many are turning to other financing alternatives for ensuring their transportation needs are met.
Thankfully, affordable lease, lease-purchase, and financing programs are available so districts, contractors, and private owners don’t have to settle for a bus or coach that doesn’t actually meet their needs. The key is knowing what works best for you.
Leasing allows customers to make pre-agreed upon rental payments over a predetermined amount of time. Once that time is up, the customer returns the bus to the dealer and has the option to begin a new lease or walk away to explore other options.
If you plan on using a bus long-term, a lease-purchase option may be more suited to your needs. A lease-purchase program, also known as installment purchase, allows customers to enter into a pre-negotiated rate, term, and payment amount. At the end of this payment period, the customer then owns the bus. This is an especially attractive option for contractors who can take phentermine no prescription of the buses to lower their taxable income.
School districts often shy away from bus financing options due to government laws that prohibit government agencies from incurring debt, but that doesn’t mean there aren’t options for districts. Instead, when school districts “lease” buses, they technically own the vehicle. In this case, districts must appropriate funds each year to pay for that year’s portion of the vehicle’s expenses.
In many cases, government entities such as school districts can greatly benefit from financing options by taking advantage of lower interest rates.
“Interest income from a school district-issued bond or lease payment is exempt from federal income tax,” Keith Courtney explained to School Bus Fleet. He estimates school district rates to be 35 percent less than contractor rates, which would depend more on individual company credit.
The best part of financing a bus or coach is that you can help negotiate the terms of the agreement to fit what you need. While the norm for leasing or lease-purchasing is five years, you can opt to lease for anywhere from three to 10 years.
Payment options and financing structures can be similarly flexible. Depending on your needs, you may be able to customize your agreement to include no down payment, delayed first payment, skip payments during specific times of the year, escrow funding, or balloon payments.
Don’t let today’s rough markets and shrinking budgets prevent your organization from acquiring the reliable bus or coach you need. Call us today at 866-574-9970. We can help you find the bus you need, and we are glad to work out a financing agreement that works for you.
