Financing

In today’s tight economy, budgets everywhere are more constrained than ever. Financing is a way to make your dollars go further and the purchase of school or commercial bus fleets more effective. Western Bus Sales is here to help you manage your transportation needs by conserving cash and creating customized financing solutions to assist you with your objectives.

There are some important questions to ask yourself when deciding if financing is right for your situation:

  • What will happen to the vehicle’s value as time goes on?
  • What will the value be at the end of the economic life cycle?
  • Will the vehicle remain functional or become obsolete before the end of its useful life?
  • What is the best way to use your capital?
  • Should it be used to purchase an asset or used for other areas of greater importance?
  • What option will provide the best tax advantage?
  • What is the average age of your fleet?
  • What is the annual cost for maintaining an older fleet?
  • Do you consider increased cost of maintenance, service, parts when elevating total cost of ownership?
  • How often are your buses out of service due to frequency of maintenance?

Many different types and terms for financing are available for both municipal (school district) and commercial customers, including:

  • Full Payout with $1.00 Purchase Option, also known as a traditional Lease Purchase
    • A finance lease in which vehicle is purchased at lease end for a nominal amount of $1.00
  • Lease with Fixed Price Purchase Option (Balloon)
    • A finance lease in which vehicle is purchased for an amount specified in the lease or returned at lease end
  • Tax or True Lease (Fair Market Value/FMV)
    • An operating lease in which the lessee can purchase the vehicle for a fair market value at lease end, extend the lease, or return the vheicle
  • Other flexibility options include:
    • Monthly, quarterly, semi-annual, or annual payments
    • Skip payments during non-revenue generating months (like the summer)
    • Deferred initial payments to next budget year