What exactly is a Fire Truck Lease?

It’s actually called a lease purchase agreement (or “lease-purchase” or “installment purchase” depending on your state).

Leasing is allowable to finance fire trucks in all 50 states,

By using a lease  instead of a “loan” or a “bond”, you have additional freedoms and reduced legal steps to follow.

A lease is very similar to a loan because:

  1. You own the truck during the finance period.
  2. You are responsible for ownership such as insuring, maintaining, and repairing the truck.
  3. The lien on the truck is released without a fee or additional payment after you’ve paid all the payments.
  4. You can pay off the truck early or pay extra payments without penalty

Why is a Lease Purchase Agreement not a loan?

Lease Purchase Agreements help local communities finance fire trucks without the unpredictable and time-consuming requirements of a loan or a bond. In most states, a lease purchase agreement does not require voter approval, any state government oversight, and is not subject to debt limitations.

A lease purchase agreement gives you the annual option to cancel the agreement without any penalty.

Because of this, most states consider the lease payments as an expense.

What happens when I pay off the lease purchase agreement?

Just like a loan, we release our lien on the truck’s title and you own the truck free and clear.

You don’t have to pay any other payments, residuals, no purchase options, or other fees or costs. You own the truck at all times during the repayment period and there is a lien on the title.

So, if you are considering financing a fire truck, a lease purchase agreement is a common and efficient method to get the truck.


Note: This type of fire truck leasing is different than turn-in, walk-away, and fair market leases which are offered by manufacturers. Those type of agreements work well for fire departments with very specific and special situations. If you’d like to learn more about these types of agreements, click here.