Call today 877-323-1776

Bonding vs. Leasing Fire Truck

Fire Truck Financing Payment Calculator

Payment Estimator

Estimate fire truck payment for budgeting purposes.

Fire Truck Justification Kit

Justifying Kit

Show your council buying a truck now makes financial sense.

Financing Kit

Learn options, best practices, common mistakes, and money saving ideas.

Fire Truck Financing Approach

Our Unique Approach

Our typical community saves over $11,000.

Leasing and bonding are simply two different types of financing a fire truck.

They differ in many legal, technical details but they basically work the same – you get a new truck now and you have to make payments for a few years to pay it off.

So, what’s the difference between bonding and leasing?

A brief description of bonding for firefighters

Bonding is a financing option where you are committing to make payments no matter what.  Your only flexibility is to sell the truck or default on the truck and have it repossessed.

Bonding is  a very legal process involving attorneys and usually involves the pledging (providing a lien) on all your income to pay the bond.  In other words, you technically must pay the payment before everything else.

Because of this commitment, the interest rate is slightly lower before factoring in the transaction costs.

A brief description of leasing for firefighters

Leasing a fire truck is mostly done with a Lease Purchase Agreement.  A fire truck lease purchase is not like a car lease where you own for a few years and turn it back in.

A lease purchase agreement is like a loan where your goal is to own the truck after making all the payments.

The reason it’s called a lease is because your department has the annual option to cancel the agreement each year without penalty (depending on your state’s laws).  You simply lose the the use of the truck.

A lease purchase agreement does not require a lot of attorney help.  It usually has a slightly higher interest rate and does not have all the upfront costs.

What do most fire departments do?

Because of the flexibility and smaller attorney fees and costs upfront, most fire departments in the United States use lease purchase agreements to finance their fire apparatus.

In fact, over 90% of all financed fire trucks are financed with a lease purchase agreement.

Want to learn more?

Call us today to see if your department should use leasing or bonding for your fire truck today.

Simply call toll-free at 877-323-1776


Get free tools and info for each step of your fire truck purchase

Early Stages

Justifying purchase, setting budget.

Learn More


Ready to sign contract, analyzing discount offers.

Learn More


Set payments, pay least cost, learn about financing.

Learn More

This website and its content are copyright of First Bankers  | © First Bankers 1999–2020. All rights reserved. SITEMAP

Site design by 801red