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City 'Getting Ripped Off' in Leasing Deal, Councilman Says

March 11, 2015

A Flint, Mich., City Council member says city taxpayers are "getting ripped off" in a $2 million vehicle leasing deal with Enterprise Fleet Management, reports MLive.com.

Councilman Scott Kincaid has called on the city to return 13 leased Ford F-250 pickup trucks that were leased as part of a 47-vehicle lease deal set up with Enterprise. Kincaid said he shopped for Chevrolet Equinox vehicle leases and found them available from an area car dealer for $100 less per vehicle, per month than the $388 the city is paying.

A city spokesman has countered that the leasing deal was public and "thoroughly vetted" by the state's Department of Treasury.

Comments

  1. 1. Richard Battersby [ March 11, 2015 @ 12:03PM ]

    I guess I'm missing something in the story as I would not expect lease cost for an Equinox and F250 to be the same

  2. 2. Brian Strong [ March 11, 2015 @ 12:10PM ]

    This councilman is entierly uninformed.

    Most people in the Government leasing world knows a Municipal Lease is completely different than an Individual lease because they are completely "Open-Ended". This means there are no mileage or "wear and tear" restrictions like a "closed ended" individual lease. Also, the Federal Government mandates Municipal Leases have a clause that allows them to turn a leased vehicle in with no disposition fees or penalties after 365 days of use. A Municipal Residual is $1.00 and an individual residual is typically 35% to 46% because there's no "wear and tear" risk.

    The Michigan Department of Transportation leases all their State Police, DNR and Statet Execurive vehicles with terms nearly identical to the city of Flint.

  3. 3. john mccorkhill [ March 11, 2015 @ 01:42PM ]

    Same ol' Same ol' story...another councilman professing to be the expert with regard to the leasing of a vehicle who fails to do an apples-to-apples comparison and gets the press because of his position. Hang tight City of Flint fleet management.

  4. 4. Craig Crowder [ March 13, 2015 @ 08:13AM ]

    I must be missing something as well Richard, because I'm seeing the application for an Equinox and an F250 to be vastly different.

  5. 5. Scott Newsome [ March 13, 2015 @ 08:15AM ]

    The article seems to imply that the councilman would replace the F250 truck with an Equinox. Unless someone chose the F250 for sole purpose of transporting people, an Equinox would seem to be and unlikely substitute.

 

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