March 11th, 2009 Posted in Misc. Motor | 1 Comment »
Aside from the benefits which may be realized in the forthcoming “Stimulus Plan,” it’s clear to all involved in government services today that long term constrained budgets are a reality. Given that tight budgets may deter command staff from considering motorcycles, whether a new fleet or simply replacement motors, viable financing alternatives must be considered.
I had the opportunity to reach out to Mr. Barry Kuhnly, Police & Fleet Sales Manager at Bruce Rossmeyer Harley-Davidson. The Rossmeyer dealership’s represent the largest police motorcycle fleet and leasing dealership retail consortium globally. According to Mr. Kuhnly, “Law enforcement agencies would be well advised to consider leasing as an alternative to outright purchase, in order to fix their costs in the term of the lease agreement.” Mr. Kuhnly went on to say that there are several unique requirements your particular department might request of your local, authorized motorcycle dealer, e.g.
- Term: Minimum two year lease term
- Mileage: A two year lease coincides with the two year unlimited mileage warranty provided by Harley-Davidson Motor Company
- Fix Maintenance Costs: Ability to forecast maintenance costs during the term of the lease by adding the anticipated cost of maintenance to the monthly lease payment; given annual forecast mileage, warranty will cover everything except routine maintenance
- Procure Optional Equipment: Consider also adding optional equipment such as new Setcom ComKit Systems or perhaps Whelen LED police emergency lighting systems to the cost of the lease. As example, new ComKit System or LED lighting equipment may be paid for during the term of the two-year lease; however, such optional equipment may last for several years after the initial lease term allowing for subsequent leases to be less.
Please consider these topics when discussing your department’s next lease with your local, authorized motorcycle dealer. If you follow these simple requests, then your agency will be fortunate enough to secure a lease program, with a fixed cost lease term, while acquiring much needed emergency/option equipment.
In today’s turbulent economy the two year lease is a way to forecast exactly what your costs will be for the next couple years no matter which direction the economy goes and protects the department during these uncertain times.
Though there are many lease resources available throughout the country today, your lease efforts should first begin at your local motorcycle dealer. Your local authorized dealer should be well-versed in all aspects of leasing and the resources necessary to secure the best lease program to meet your department’s needs and wants. If not, it’s time to find a knowledgeable dealer.
Harley-Davidson Financial Services effectively supports the municipal leasing programs offered by many authorized Harley-Davidson dealers. However, there’s also a wide world of successful leasing companies just waiting for the opportunity to support your local efforts. One of my personal favorites is Sparta Commercial Services, Inc., Personal Contact: Mr. Louis Musher, Commercial Products Manager, 800.882.0778, ext. 217, or E-mail: louis@spartacommercial.com. Sparta tends to offer some unique lease program focused advantages, such as,
- Payments terms designed to meet your agency’s needs
- Highly flexible payment plan options
- Optional and essential equipment that may be financed within the lease
- A special “Lease-to-Own Program” for those municipalities wishing to own their motorcycles at lease-end, offering a $1 Buyout at lease-end
- All brands and models are welcomed
According to Mr. Musher, Sparta Commercial Services, “Through our experience we have found that some agencies would prefer longer terms for any number of reasons, including the fact that longer terms can keep the lease payments lower.”
Here’s a personal testimonial from New Jersey, as told to Sparta Commercial Services, Inc (Municipal Leasing),
“Everything was perfect; everything happened on schedule. For the first time, leasing was made easy, and as the officer assigned to complete the documentation, as well as ride the motorcycle, it was certainly appreciated… I don’t know of any other leasing company that calls their customers every so often just to see how things are going.”
– Motor Officer Ben Christiano
Township of Bloomfield, NJ Police Department
There are a few agencies scattered across the country requiring individual officers to purchase their own motor and the act to cover various expenses. If you are responsible for acquiring your own motor, then Sparta’s “American Heroes Program” is worth consideration, as they offer special discount rates for all law enforcement officers, fire fighters and also military personnel.
As the second largest selling brand of police and authority motorcycles in the US, BMW Motorrad USA encourages a five year lease term program. At the end of the lease term, the department has several options,
- Purchase the motor for just one dollar
- Continue the service life of their existing motors, without any additional lease payments
- Use the resale value of the used motors as a substantial down payment to be applied to the purchase of new motors
Generally, BMW doesn’t focus on short-term leasing (for 1-2 years). That is, given the anticipated long service life and projected operating costs of BMW motorcycles, such leases are not deemed to be cost effective. The specialty LED lighting systems on BMW’s is manufactured by Code 3 right here in the states and is also covered under the BMW warranty of 39 months/60,000 mile warranty. When purchasing the completely outfitted BMW (with specially designed Code 3 Lighting System) there is no need to ever deal with a separate vendor for warranty issues on the lighting system. Again, please see your authorized BMW retailer for complete details.
If you need direction regarding other leasing company resources just let me know, there are many more ready and willing to do business.
The very best place to search for a viable lease program, tailor-made for your agency, is to begin looking right in your own backyard; start with your local authorized dealer.
