As school districts and corporations face tighter finances, delays in replacing used school buses and other transit vehicles have become common as the costs related to buying a new bus or a new fleet of buses simply don’t fit into their shrinking budgets. One option that is particularly effective, especially in situations where being able to provide transit is a necessity, is to procure buses using lease financing.
One of the many advantages of leasing is that it can help to maintain the overall age and quality of the fleet while staying within a smaller budget. This enables organizations to purchase the vehicles they need rather than buying less than optimal buses due to budgetary constraints. It also allows for payments over time, which allows for better budget management and the ability to cover other capital requirements.
Financing through leasing can deliver flexibility, advantages and solutions that otherwise are not available for school districts, businesses, contractors, etc. through the outright purchase of used school buses, vans, etc.
Flexibility in Lease Financing
- The option to set a timeframe for a lease – The standard lease typically runs for 5 years but leases can have timeframes ranging from 3 to 10 years.
- A variety of financing scenarios – Leases can be structured with no down payment, the option to pay yearly, grace periods, and other financing options.
- Lease to purchase options – In this form of financing, lease payments reduce the amount owed on the purchase, much like buying on credit.
Advantages
- With a lease, payments are made for a set period of time and then the vehicle can be returned as per the contract. This eliminates resale and other issues associated with ownership.
- Leased vehicles typically require less maintenance, saving on expenses and down time.
Solutions
- As mentioned, tight budgets may preclude the outright purchase of new or used school buses. Lease financing can provide organizations with the ability to get the bus or buses that they want without having to come up with a large payment.
- For school districts that have government regulations regarding lease specifics, the lower amount of funds that must be appropriated for school buses means that money can be directed to the classroom.
Lease financing enables access for organizations to the transportation options that best suit their needs while working within the tightening budgets of school districts, businesses, and contractors. For more information, visit: http://www.busmartinc.com/