Commercial Leases are designed for businesses. Our Commercial TRAC (Terminal Rental Adjustment Clause) Leases are designed to help you conserve cash and maximize cash flow associated with your vehicle and equipment needs and help you avoid spending on value of the asset that you have not consumed.
Whether it's your intent to own the vehicle(s) and equipment at the end of the lease term or whether you want a steady vehicle rotation and replacement schedule, a Commercial TRAC Lease is an ideal tool.
* Lower Monthly Payments
* No Deposit Required
* No Limits on Mileage and Wear
* Additional (Upfit) Equipment Can Be Included
We work with our customers from Order-To-Delivery, not only do we structure leases, we also help every step of the way towards putting your vehicles and equipment into service, from ordering units (whether locating in-stock or factory ordering), dealer management, pricing, incentives, discounts, upfit routing and management, delivery, registration and more. We are a one-stop-shop for putting vehicles and equipment into service, distinguishing us from most other leasing and management companies. Most of our customers, from start to finish only ever need to deal with one single contact while we manage all of the other involved parties.
When discussing Commercial TRAC Leases, it is important to understand the phrase "Residual Value". Residual Value is a predetermined value that must be satisfied at the end of the lease term, typically this is the amount expected to be receive for the asset at the end of the term, however, while there are typically limits on how high the residual value can be set, there is no limit on how low it can be set and may be as little as zero. Residual Value is not the same as Fair Market Value (a selling price for an item to which a buyer and seller can agree). You may purchase the vehicle and equipment for the residual value at the end of the lease term, less any related costs, or the vehicle and equipment can be sold, if it sells for more than the residual value, the difference is returned to you less any associated costs, if it sells for less, you are responsible for satisfying the difference.
Municipal Leases are designed for State, Parish, City, Town, Village, Local Governments, Special Districts & Authorities and all other Municipal Governments and their Agencies that qualify under IRS Section 103, including, but not limited to; Law Enforcement, Fire & EMS, Public Works & School Systems.
SPREAD COSTS OF ASSETS OVER THEIR USEFUL LIFE, ACQUIRE VEHICLES AND EQUIPMENT WITHOUT MAJOR UPFRONT CASH OUTLAYS, LONG-TERM DEBT OBLIGATIONS OR BOND REQUIREMENTS IN A NON-DEBT, TAX-EXEMPT ENVIRONMENT
· SPREAD COST Over Multiple Budget Years Without Incurring Debt
· Budget Year Dollars Up To 4X’S MORE EFFECTIVE Than Single-Payment Purchases
· BOND NOT REQUIRED
· Acquire From ANY VENDOR (State Contract & Off-Contract)
· ADDITIONAL EQUIPMENT And Upfit Content Can Be Included
· NO DEPOSITS Or Down Payments
· Vehicles TITLED TO YOUR AGENCY As Owner
· NO RESTRICTIONS On Mileage, Wear, Tear or Use
· NO PENALTIES For Early Termination Or Early Payoff
· YOUR CHOICE Of Maintenance, Service and Insurance
· FREE & CLEAR OWNERSHIP At The End Of The Lease Term For A Sum Not To Exceed $1
· IMPROVED ROTATION SCHEDULE For Your Vehicles & Equipment
· Newer Vehicles = HIGHER RELIABILITY & LOWER MAINTENANCE COSTS
* State Contract & Off Contract Vehicles & Equipment
Our Municipal Leases, technically known as a Lease-Purchase Agreement, contain a non-appropriation clause and do not contain anti-substitution or penalty clauses, as such, they are not considered a "debt" or "evidence of debt" and in essence are funded on a fiscal year to fiscal year basis and only involve currently appropriated revenue, and, therefore do not incur indebtedness and do not constitute incurring debt requiring State Bond Commission approval.
* Bond Not Required
* Non-Appropriation Clause (& No Anti-Substitution Clause)
Vehicles are titled in the name of your agency and provide the right to purchase them at the end of the lease term for a sum not exceeding $1. Additionally, your agency may at anytime during the lease-purchase agreement, complete the purchase of the vehicle and equipment without penalty for the amount of remaining lease payments less unearned interest from the future payments.
* Lease-Purchase aka "Lease-To-Own" (Lease-End Buyout $1 or Less)
* Titled To Your Agency
* Additional (Upfit) Equipment Can Be Included
Whether it's your intent to own the vehicle(s) and equipment at the end of the lease term or whether you want a steady vehicle rotation and replacement schedule, a Municipal Lease is an ideal tool. We often see aged fleet with high maintenance budgets and the additional costs of downtime, as a general rule, NEWER VEHICLES = HIGHER RELIABILITY & LOWER MAINTENANCE COSTS. Utilizing municipal leases can help you maximize the effectiveness of your budget and help you do more with less.
* Improve Your Vehicle Rotation Schedule
* Spread Costs Over Multiple Budget Years
Your fleet has unique needs that we understand. Value can be found in controlling cost, utilizing cost advantages, the convenience and savings from order-to-delivery management, structuring cash flow, reducing total cost of ownership and maximizing disposition values.
Vehicles are a major expense for any business or municipality, we work with you to minimize costs and maximize value.
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