• Police Department Police vehicle financing
  • Newark Police Department Motorcycle Fleet Police vehicle lease
  • Fire Department Truck Municipal Leasing
  • Municipal financing
  • Tax-exempt lease
  • Government financing

General Manager, Riders Harley-Davidson

Written by Super User

“I want to thank Sparta for helping us with the City's Police Motorcycle Lease. I told the city officials in a phone call, 'Sparta will give you the best rates and they’re really easy to do business with.' Sparta also makes it easy for me. I can focus on the motorcycles and they take care of the financial side."

Tim Peek
General Manager, Riders Harley-Davidson


Municipal Leases - About the Process


Many state and local governments are faced with the pressure that occurs when demands for their services outpace their financial resources. To cope with this problem, a growing number of governmental agencies have turned to a financing alternative that has long been recognized as a source of funding for large capital expenditures.

Unlike ‘traditional leasing’ or ‘rentals,’ Lease Purchase Financing allows municipal agencies to build equity with every payment and gives them immediate title to the equipment. When the agreement expires, the municipality executes what is called a ‘dollar buyout’ and now owns the equipment free and clear. This is in contrast to other leasing programs where there is a large balloon payment or residual to satisfy at the end of the lease.

Developing a lease purchase plan is attractive because it offers municipal agencies a number of advantages, such as:

  • Maximizes limited budget funds, since only the current year’s lease payments are included in the operating budget.
  • Frees up additional capital for other pressing needs of the municipality.
  • Allows for greater budget flexibility because these plans can be tailor-fit to meet the cash flow requirements of each individual organization.
  • Eliminates the need for up-front cash outlays.
  • Enables state and local governments to take advantage of low interest rates available to qualified  agencies. These rates are lower then conventional commercial rates, and in some cases, lower than the interest earned with a CD or other short-term investment.
  • Permits organizations to standardize new equipment at one time, instead of phasing in new equipment over a number of years.
  • Allows an organization to purchase equipment at today’s price and not next year's increase.

Under a typical tax-exempt Lease Purchase Agreement, the government agency and the finance company form an agreement for a given number of years, structured to meet the agency’s individual budgeting situation. Payments can be made annually, semiannually, quarterly, or monthly.

Lease Purchase plans make the most sense for any state or local agency in need of new equipment.

We look forward to hearing from you!