Financing your School Bus

School Bus Financing

Financing Options Available

Central States Bus Sales offers several school bus 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 (financing terms for a lease/purchase of a new school bus can range up to 10 years if preferred):

    • Must be a municipal entity, i.e., school district, city, county, or state
    • Interest rates used reflect low tax-exempt rates available to municipalities on lease/purchases
    • Regardless of term, the bus may be bought out or terminated on an annual basis
    • The bus is titled in the name of the municipal entity, with the lender 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
    • CSB Financial, through its partner relationships, arranges financing via a network of national and regional lender/lessors
    • Financing is subject to credit approval

Example of a typical payment schedule:

Municipal Lease

Terms and conditions for a ten-year lease with a 5/3/2 split annual payment schedule where the first payment is made at delivery and acceptance of the new bus:

    • Lessee must be a municipal entity, i.e., school district, city, county, or state
    • Interest rates used reflect taxable 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 lessor
    • 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:

If you have an interest in school bus financing, please feel free to contact Central States at

1-800-825-8273 or at bussales@centralstatesbus.com

 

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