HomeMy WebLinkAboutPolice Vehicle Lease PresentationLease Model
Option For
Police Vehicles
City of Rexburg
Lease Model
•Reasons to Lease Police Vehicles vs Purchase them
•Shorter beneficial life than other department vehicles
•Higher hours
•Quicker Acceleration rates
•Higher mileage
•Resale/Trade-In of police vehicles historically low if 7 to 10 years old
•Get releases of safety features more quickly on vehicles
•Savings in purchasing and up-fitting vehicles
•Savings in equipment repairs/shop labor
•Due to more vehicles with warranty
•Historically, Lessor is able to resale vehicle for more than the residual,
which goes back to the city
•Purchase Model recommended on other City Vehicles
•Typically much lower on miles/year
•We mostly buy trucks that can last us up to 20 + years
Recommended Lease Options
•60 Month Term
•12,000 Miles/Year
•Open-Ended Lease
•No penalty on mileage overage
•Have option to purchase non-patrol (pursuit) vehicles at
lease end
•Purchase SUV’s or Trucks with a history of better resale
prices
•Use conservative estimates on residual value
Recommended Department Vehicles
•Staff recommends a 5 year period to transition from purchased to
leased vehicles
Lease Model vs Purchase Model Cost
•It will take about 13 years before the lease program begins to
cost more because of the savings in the first 4 years
5 & 10 Year Cost Analysis
•It will take about 13 years before the lease program begins
to cost more because of the savings in the first 4 years
Requested Motions of Approval
from Elected Officials
•Approval to start lease program in 2018
•Lessor will refund purchase of 3 vehicles we already purchased for
$135,000 and move those to lease program
•Approval to lease 9 vehicles in 2018 at a cost of $95,000 in Year 1
•Approval to sign a Municipal Master Lease Agreement with
Bancorp
•Compared 2 companies
•Preferred open ended lease over closed ended lease
•Bancorp provided:
•Lower annual lease costs ($47,000 less/year fleet wide)
•No penalty for mileage overages (.18 cents/mile w/other Lessor)
•No additional fees ($250/vehicle w/other Lessor)
•A history of selling vehicles at or higher than stated residuals