Fleet Sales Financing

Commercial Financing

Net (Closed-End) Lease: Lease term is established based on projected mileage, application and specifications. You simply return the vehicle to the dealer at lease end and "walk away".

TRAC (Open-End) Lease: Lease term is established based on projected mileage, application and specifications. Customer responsible for residual at lease-end.

Municipal Financing

Program Overview: Ford Credit's Municipal Finance Program is the ideal approach to acquiring capital equipment within tight budget constraints. Our Municipal Lease Plan combines the benefits of leasing and purchasing with special features designed to handle the challenges facing municipal fleet managers.
Municipal customers avoid major cash outlays and long-term obligations. Dealers enjoy a relationship that has potential to produce additional leases and sales for years to come.

How It Works: The Ford Credit Municipal Finance Program is a lease/purchase agreement that resembles a conditional sale or an installment purchase transaction. The program is a source of medium-term, tax-exempt financing designed as an alternative source of funds to acquire capital equipment.
The lessee makes periodic payments of principal and interest and obtains ownership of the equipment for $1.00 at lease maturity. The interest portion of the periodic payments to the lessor is exempt from federal income tax; therefore, the interest rates are low "tax-exempt" rates. The transaction is considered a current obligation of the lessee -- although the agreement may cover many years.

Municipal Benefits

  • Low tax-exempt rates and more product for their budget dollars
  • Most capital expenditures can be financed (i.e., vehicles, service plans, truck bodies, accessories, computer systems and much more)
  • Flexible payment terms
  • Considered an operating expense in most states
  • No security deposit, no hidden fees, no mileage restrictions
  • Avoid high maintenance costs associated with older vehicles or equipment
  • $1 purchase option at end of lease

Dealer Role in the Program: Dealers are responsible for communicating the program to their municipal prospects. Once the contact is made, Ford Credit will assist the dealer by providing prompt lease quotations over the phone. To obtain financing proposals for municipal vehicles, call toll-free: (800) 241-4199

Further Information: For a list of eligible entities and vehicles, along with answers to frequently asked questions, consult the Ford Credit Municipal Finance Program brochure, or call toll-free: (800) 241-4199

Also, visit our website at //www.fordcreditmunicipal.com

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