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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: 1-800-241-4199
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
1-800-241-4199
Also, visit our website at http://www.fordcreditmunicipal.com
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