Frequently Asked Questions
We’ll do our best to make you as much of an expert on municipal leasing and frequently asked questions (FAQ’s) about police car leasing, as you want to be. You’ll find answers to the most-often-asked questions about government fleet leasing for sheriffs & police departments. Click on any question that interests you or all of them. We welcome every question; we want you to be 100% comfortable. No guessing or assumptions–we’ve got you covered!
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 financial institutions and investors 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.
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 police entity (technically "political subdivisions") 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:"
- The power to police, and/or
- The authority to levy and collect taxes and/or
- 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!
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)
- 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. Police cars are registered by and titled in your agency's name and remain in your name and possession. There is no residual; there is no buyout. Nothing is returned. Nothing is due.
- 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)
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Questions About Who is Eligible to Use Police or Municipal Leases?
Call 800-541-0114 x-22
(On your phone? Click to call! Press ext. 22 for Police Car Leasing)
- 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 What 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)
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)
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 this, 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)
We’ve Got You Covered!
Do You Have Questions Police Leasing Contract Payoffs?
Call Now 800-541-0114 x-22
(Using your phone? Click to call! Press ext. 22 for Police Leasing)
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 are very complicated legal documents (read: expensive, time-consuming, loaded with compliance requirements, town meetings, referendums and interest rate risk).
Bonds are generally best suited to the largest 7-8 figure projects, extending over 15, 20, or even 25 years, like sewers, roads, bridges, and building projects, etc.
Unlike leases, 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 in a matter of hours on any combination of vehicles & equipment. 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 Municipal Leases, Bonds & Banks?
Call 800-541-0114 x-22
(On your phone? Click to call! Press ext. 22 for Police Car Leasing)
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.
(During the term of the lease, we will be listed on your insurance policy as "additional insured" and "loss payee," to the extent of our interest.)
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Do You Have Maintenance & Insurance Questions for Police Vehicles?
Call Now 800-541-0114 x-22
(On your phone? Click to call! Press ext. 22 for Police Car Leasing)
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)
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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)
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)
Questions? 800-541-0114 x-22 Click To Call!
IMPORTANT NOTICE: The information provided on these web pages by First Capital Equipment Leasing Corp. (“FCELC”) is not intended to be and should not be construed as “advice.” FCELC does not act as a municipal advisor, municipal financial consultant, fiduciary or agent to any person or entity pursuant to Section 15B of the Securities Exchange Act of 1934 and the municipal advisor rules of the SEC. FCELC is not recommending that you take an action with respect to the information presented here. You should review and discuss all municipal financing matters with such independent financial, tax and legal advisors as you deem appropriate.