A "Tax-Exempt" municipal lease is a special kind of financial instrument provided for under I.R.S. regulations (implemented many years ago).  The tax exemption is not related to the sales, use, or other taxes a government may or may not pay, but rather the tax exemption benefits the financial institution or investors funding the lease.

Tax-exempt municipal leases provide a significant tax incentive to a financial institution or investor to lend to qualified government entities at the lowest interest rates.  Generally, a tax-exempt lease is your government's least expensive form of non-debt financing.

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Questions Police Leasing & Tax-Exempt Financing?
Call 800-541-0114  x-22
(On your phone? Click to call! Press ext. 22 for Police Car Leasing)

Virtually any state, county, city & municipal entity (technically "a political subdivision) qualifies for Police & Sheriff's municipal leasing under IRS Section 103. This includes almost any Public Safety, Fire, Rescue, EMS, Water, Port & Parking Authorities, and a variety of "special districts" and authorities.

Quick Test for Eligibility:  To be designated as "qualifying," the IRS requires that an entity have any one (or more) of the following legal authorities:

1. The power to police, and/or
2. The authority to levy and collect taxes and/or
3. The legal prerogative of eminent domain 

If your city or agency has one or more of these three legal powers, you're almost certainly "good to go" with very low municipal financing.

Let us show you the numbers with a quick quote now on any combination of vehicles & equipment. We'll have real numbers on your desk today –  you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency!

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Questions About Police Car Leasing?
Call 800-541-0114  x-22
(On your phone? Click to call! Press ext. 22 for Police Car Leasing Qualifications)

The significant benefits of municipal leasing:

• Spread large expenses over multiple budget periods.
• Purchase from the state contract:   All vehicles and equipment are sourced by the Lessee from vendors of its choosing, state contract holders, or other providers.   As a government entity you can purchase for less we can.
• The lowest interest rates.  Lower than your dealer.  Much lower than conventional or commercial rates. And rates are fixed.  Municipal rates are generally your government's least expensive source of non-debt financing.
• Lease-to-Own. There is no residual; there is no buyout. Police cars are registered by and titled in your agency's name.   You own them.  Vehicles remain in your name and your possession at the end of the lease.   Nothing is returned.  There are no buyouts or fees.   No money is due after the last lease payment.  Zero!
• Easier & Faster.   One page application only, two-day approval (to $100K). 2 Page Application, 3-4 day approvals (to $10 MM).
• Non-Appropriation Language (funding out) automatically included in every police lease (where required by law).  And it probably is in your jurisdiction.

Let us show you the numbers with a quick quote now on any combination of vehicles & equipment.  We'll have real numbers on your desk today –  you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency!

We’ve Got You Covered!

Questions About Police Car Leasing?
Call 800-541-0114  x-22
(On your phone? Click to call! Press ext. 22 for Police Car Leasing)

How and when do my vendors get paid?  Upon receipt of your signed municipal lease-to-own contract, 100% of the lease amount is deposited into an account in your agency's name, at our bank.

Vendors are paid directly by our bank, on your behalf via wire transfer (or cashiers check) three (3) business days after delivery, our receipt of your unqualified acceptance and your payment authorization.  Easy. Fast!

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Do You Have Questions About Your Vendors Get Paid?

Call Now 800-541-0114  x-22
(On your phone? Click to call! Press ext. 22 for Police Car Leasing)

Can my county sheriff's office or the state police use a municipal lease?  Yes!  "Municipal" is an "umbrella" term.  Qualifying municipal entities include state, county and local governments, special districts and authorities (also referred to as "political subdivisions")

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Questions About Who is Eligible to Use a Police or Municipal  Leases?
Call 800-541-0114  x-22
(On your phone? Click to call! Press ext. 22 for Police Car Leasing)

Just about any type of essential-use equipment, vehicles, hardware, software or real property (land and buildings) qualifies:

• Computers-Laptops & Desktops to Mainframes
• Software including SaaS (software as a service), Citation, RMS (records management), Maintenance, HR, Scheduling, Jail & Court Software
• Police and Sheriff's Cars, Vans, Buses, Crime Scene, Mobile Command  & SWAT vehicles
• Networks
• Communications Equipment--Mobile & Portable Radios, Towers, Repeaters, P25 Upgrades
• CAD Hardware & Software (computer-aided dispatch)

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Questions About Which Vehicles & Equipment Can Be Leased?
Call 800-541-0114 x-22
(On your phone? Click to call! Press ext. 22 for More About Police Car Leasing)

My agency's budget year starts July 1st  (or September 1st or January 15th...or next year!) Does my department have to wait until then?

No! That's the beauty of First Capital police car fleet leasing--your agency can sign the municipal lease documents today, you can take delivery from your vendor tomorrow, and we can pay your vendor in full within 4 business days.

Here's why we call it "cash flow friendly."  Payments can be made monthly, quarterly, semi-annually, or annually.  Your agency's first lease payment to us can be any day that you select.  30, 90, 180 days, or even 12 months, from today!

When First Capital pays your vendor is NOT LINKED to when your city makes its lease payments to us!

Let us show you the real numbers with a quick quote now on any combination of police vehicles and equipment.  We'll have the numbers on your desk today, you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency!

We’ve Got You Covered!

Questions About Police Car Leasing?
Call 800-541-0114  x-22
(On your phone? Click to call! Press ext. 22 for Police Car Leasing Questions)

With a municipal lease, YOUR GOVERNMENT OWNS EVERYTHING financed under the government fleet lease--from the day it is delivered.   Every vendor invoice is "Bill To:" and "Ship To:" your agency, not us.  Every purchase is 100% direct between your agency and the vendors YOU select.  Our name does not appear on any vendor paperwork.

You select and order the vehicles and equipment directly from the vendors of your choice.  Our bank pays your vendors directly on your behalf and with your authorization--after you receive the police vehicles and/or equipment,  

You register the vehicles with the state.  Everything is titled in the city's name.

There are never any buyouts, balloons, or lease-end monies due.  Ever.

The only paperwork difference between government fleet vehicles purchased for cash and vehicles purchased under a municipal lease-to-own contract is that we will have a security interest*  in the vehicles until the last lease payment has been received.  After which, the security interest falls away, and your agency is free to sell, re-task to other city departments, trade, or continue to use the vehicles forever-literally!   (* Security interest not applicable  in FL & TN)

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Questions About Police & Equipment Leasing?
Call 800-541-0114  x-22
(On your phone? Click to call! Press ext. 22 for Police & Sheriff Leasing)

Can I Payoff The Lease Early?  Yes!  All of our municipal leases can be prepaid after any lease period.  Every lease agreement automatically includes an amortization table that shows the interest, principal, and payoff amount for each period of the lease.  Future payoff amounts are guaranteed (locked in) upfront.

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Do You Have Questions About Our Police Leasing Contracts?
Call Now 800-541-0114  x-22
(Using your phone? Click to call! Press ext.  22 for Police Leasing)

This is My Budget...  Unlike traditional municipal lease quotes (like our "Classic Quote"), our Buying Power Quote. It's just like a "typical quote;" only turned on its head. YOU TELL US HOW MUCH YOU HAVE (in your budget), and  WE'LL SHOW YOU HOW MUCH YOU CAN BUY TODAY with that annual budget.  Your financial "leverage" with a municipal lease is the difference between what you can spend for cash and what the same amount (applied to a lease over 3-6 years) will allow you to buy today (that can easily be 3, 4, 5 or even 6 times as much!) That's municipal leasing leverage.

  Let us show you--it's fast, free and no obligation, of course.  Pretty neat and VERY helpful!

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Questions About Buying Power Quotes for Police Car Leasing?
Call Now 800-541-0114  x-22
(On your phone? Click to call! Press ext. 22 for Police Car Leasing)

Bonds, Banks & Municipal Leases.  The laws in most localities generally prohibit state, county & municipal governments from borrowing (incurring debt) that extends over multiple fiscal (budget) periods. Until those future budgets are formally approved, the current governing body has no legal authority to bind the next elected governing body into making future payments.  Because of these special restrictions, the non-traditional paperwork, low-interest rate yields, municipal leasing is something of a financial specialty area.  For many bankers, it's just not their cup of tea.

Bonds are very complicated legal documents (read: expensive, time-consuming, loaded with compliance requirements, town meetings, referendums and interest rate risk).

Bonds are generally most appropriate for the largest 7-8 figure projects, extending over 15, 20, or even 25 years,  like sewers, roads, bridges, and building projects, etc.

Unlike their financial "cousins" bonds are backed by "the full faith and credit" of your city.   BONDS CREATE DEBT and the bond covenants generally stipulate that the city will be required to raise taxes as necessary to pay the bond obligation should the city's fortunes change.  This guarantee can reach directly into the pockets of every single tax-payer--requiring them to ante up their share of any shortfall.  It can get ugly.

There are VAST DIFFERENCES between a municipal lease that includes non-appropriation provisions (generally treated as an expense) and bonds that create debt for your community.

Let us show you the numbers with a quick quote now on any combination of vehicles & equipment. We'll have real numbers on your desk today – you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency!

We’ve Got You Covered!

Questions About Police Car Leasing, Bonds & Banks?
Call 800-541-0114  x-22
(On your phone? Click to call! Press ext. 22  for Police Car Leasing)

Our experience counts!  Lease-to-own financing for governments is what we do.  Clients include federal, state, county, and municipal governments, special districts, and authorities throughout the United States since 1985!

Small Fleets, Big Fleets...millions of dollars of police cars, hardware, software, vehicles, and equipment--throughout the United States.   Fleets operating from 2 - 200 vehicles.  Local law enforcement & public safety, county sheriff's, prisoner transport, jails, public school, and college police.  We are A+ rated by the Better Business Bureau (BBB).

Let us show you the numbers with a quick quote now on any combination of vehicles & equipment. We'll have real numbers on your desk today –  you’ll know within 60 seconds of receiving our quote if municipal leasing is the best choice for your agency!

We’ve Got You Covered!

Questions About Our Police Car Leasing Experience?
Call 800-541-0114  x-22
(On your phone? Click to call! Press ext. 22 for Police Car Leasing)

All vehicles  & equipment are registered by and titled in the city's name.  You own them.  The responsibility for maintenance and insurance is exactly the same as with any other city-owned property, vehicles, and equipment.

(During the term of the lease, we will be listed on your policy as "additional insured" and "loss payee," to the extent of our interest.)

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Do You Have Maintenance & Insurance Questions About Police Vehicles?
Call Now 800-541-0114  x-22
(On your phone? Click to call! Press ext. 22 for Police Car Leasing)

With a Municipal Lease

The equipment is sold directly to the government entity (not a financial institution).  This means you own the equipment.  Vehicles will be registered to and titled in your city's name and remain in the city's after the lease.  Also, our municipal leases are based on tax-exempt municipal interest rates, which are the lowest cost type of non-debt borrowing available to government entities like yours.

With a Commercial Vehicle or Equipment lease

The equipment is sold to a financial institution (who doesn't have access to government contract pricing,  or tax-exempt interest rates).   Commercial leases are based on significantly higher interest rates.  Most commercial leases are effectively structured as rental agreements with either residual buyouts, nominal or fair-market-value purchase options on the back end.

Another critical difference is that commercial leases are "firm term" obligations that do not include the non-appropriation of funds language that is required in almost all jurisdictions.  And they create debt.

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Do you have questions about
the differences between commercial and municipal leasing?
Call Now 800-541-0114  x-22
(Using your phone? Click to call! Press ext. 22 for Government & Municipal)

* Note:  We retain a security interest during the term of the lease.  (Except in FL & TN)

Why is it so important?  Our municipal leases automatically include non-appropriation (or "funding out") language wherever required by law.  This unique language effectively relieves the government entity of the obligation to pay in the event funds are not appropriated in any subsequent budget period, for any legal reason.  Every governing body must re-affirm their willingness and ability to pay a municipal lease, every year by including the lease payments in each new budget (no special paperwork).  With just a handful of exceptions, most government entities simply aren't allowed under state or local laws, to incur a municipal obligation without non-appropriation language included.  Most governments treat multi-year municipal lease obligations (with non-appropriation provisions) as expenses rather than long term debt.

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Do You Have Questions About Non-Appropriation Language?
Call Now 800-541-0114  x-22
(On your phone? Click to call! Press ext. 22 for Police Car Leasing)

Absolutely!  The term we can offer may be reduced in accordance with the age of the used equipment at the start and at the end of the lease.  Call us with the details for these specialized municipal leasing quotes.

Leasing is not available for used high-tech and electronics, e.g.  computers, copiers, communications gear, etc. (nor is it available for supplies or other consumables)

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Do You Have Questions About Used Police Car Leasing?
Call Now 800-541-0114 x-22
(On your phone? Click to call! Press ext. 22 for Police Car Leasing)