Fire Truck Help

Fire Truck Help

What are fire truck lease purchase standard terms and conditions?

It’s easy to focus so much on the dollars and cents that you miss your responsibilities under a fire truck lease purchase agreement.  And some unscrupulous lenders will even use the “fine print” to take more money from you.  So, the deal you think you got doesn’t exist.

Here are the most common standard fire truck lease purchase terms and conditions:

  1. Insurance requirements.  You will provide insurance on the fire truck to both to repair the truck after an accident and for liability if the fire truck causes damages to other people or property.
  2. Tax exempt language.  Most fire truck lease purchases are completed using low, tax-exempt interest rates.  And the IRS has specific rules about what qualifies for these lower rates.  You should expect to see some language about your use and operation of the fire truck that ensures the financing remains qualified.
  3. Declarations about you.  You should expect to certify that you are an entity that meets the requirements for low, tax-exempt interest rates.
  4. Default language.  Default is when you fail to complete some requirement under the contract and the lender will take steps to correct the default.  There should be a just process of correcting the default such as a payment grace period before your truck can be repossessed, for example. Most common types of default are non-payment, lack of insurance, unrepaired damage, or losing the tax-exempt status.
  5. Payments.  There should be clear payment requirements noting exactly how much you pay each payment, what your remaining balance is, how much interest you are paying, and what is the amount if you want to pay off the truck early.  This is the area that most unscrupulous lenders will use to grab more of your money so pay particular attention to these clauses in your contract.