Vehicle Acquisition Options
Vehicle Acquisition Options Chart
This chart provides you with guidelines for whether to acquire a vehicle through the options of buy, lease, rent, or reimburse.
When making a vehicle acquisition decision, you must look not only at financial comparisons, but also at your entity's situation and need. Ask questions to drive your decision.
- Does your agency have funding for major vehicle repairs typically seen after a vehicle reaches 5 years of age?
- Does your agency have enough funding to purchase a new vehicle?
- How many miles will the vehicle be driven?
- How frequently will be the vehicle be driven?
- How long does your agency need a vehicle?
- Does the vehicle require specialized equipment? ex. bucket trucks
- Will the vehicle be used for a specific purpose? ex. law enforcement
- Is the cost per mile more or less important than long-term costs?
|
Factors |
POV |
Rent |
Lease |
Purchase |
|
Mileage |
Under 30 miles per day |
Over 900 miles per month |
14,000 per year |
14,000 per year |
|
Length of time needed |
Depends |
1-3 months |
6 months – 3 year |
3-5 years |
|
Must be under allotment? |
No |
No |
Yes |
Yes |
|
Capital funding |
No |
N/A |
N/A |
Yes |
|
Operating funding |
Yes |
Yes |
Yes |
Yes |