School Bus Financing
Financing Options Available
Central States Bus Sales offers several financing alternatives to assist with the acquisition of your new or used school bus. Through our network of financial associates, a lease, lease/purchase, delayed payment, skip payment, or many combinations of creative financing programs may be developed to best suit your individual needs.
The following represents a sample of some of the more common programs that are available:
Municipal Lease/Purchase
Terms and conditions for a five-year lease/purchase with five equal annual payments where the first payment is made upon delivery and acceptance of the new bus:
- Must be a municipal entity, i.e., school district, city, county, or state
- Interest rates used are discounted to municipal rates
- Even though this is a five-year lease/purchase, it may be bought out or terminated on an annual basis
- The bus is titled in the name of the municipal entity, with the lessor named as the lien holder
- Interest portion of annual payment is not typically an allowable cost for most state transportation formulas
- Municipal entity is responsible for all licensing and taxes
- Typical financial sources: Commerce Bank and Blue Bird Financial
- Financing is subject to credit approval
Example of a typical payment schedule:
| Purchase price of one bus: |
$50,000.00 |
| Interest Rate: |
6.17% |
5 equal annual payments for years 1-5:
(first payment due on delivery) |
$11,227.75 |
| Buy-out amount after five payments: |
$1.00 |
Municipal Lease (Bus Trust Lease)
Terms and conditions for a ten-year lease with a 7/3 split annual payment schedule where the first payment is made thirty days after delivery and acceptance of the new bus:
- Lessee must be a municipal entity, i.e., school district, city, county, or state
- Interest rates used are discounted to municipal rates
- Even though this is set up as a ten-year lease, the lease is annually renewable, so it may be terminated on an annual basis
- The bus is titled in the name of the Bus Trust, so the lessor is responsible for all taxes and licenses
- Interest component is blended as part of the annual lease payment, so the entire payment is considered an allowable cost for most state transportation formulas
- A purchase option is NOT included as part of this lease
- Financing is subject to credit approval
Example of a typical payment schedule:
| Purchase price of one bus: |
$50,000.00 |
| Interest Rate: |
6.17% |
7 equal annual payments for years 1-7:
(first payment due 30 days after delivery) |
$ 8,308.44 |
| 3 final payments for years 8-10: |
$ 1,000.00 |
If you have an interest in school bus financing, please feel free to contact us at
1-800-825-8273 or at bussales@centralstatesbus.com.
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