Article
Summer | 2025
Navigating Patrol Vehicle Acquisition
By Roz Icenhour
Summer | 2025
Acquiring patrol vehicles is a crucial financial and operational decision for every law enforcement agency. These vehicles are a substantial investment, often surpassing the costs of any other equipment purchased. They serve as the department’s workhorses, essential for patrol, emergency response, community engagement, and officer safety.
Traditionally, agencies have opted to buy their vehicles outright, but leasing has emerged as a viable alternative, presenting both advantages and disadvantages.
This article explores some of the prominent leasing options available to Georgia agencies, including Enterprise Fleet Management, the Georgia Municipal Association (GMA) Direct Lease Program, the Association of County Commissioners (ACCG) Vehicle and Equipment Financing Program, and municipal leasing programs offered by vehicle manufacturers through auto dealerships.
The Traditional Path: Purchasing Patrol Vehicles
For decades, the traditional approach to acquiring patrol vehicles has been through outright purchase. This method offers several key advantages:
- Equity and Asset Building: Once purchased, the vehicle becomes a department asset, potentially offering long-term financial value.
- Long-Term Cost Predictability: After the initial purchase, costs become more predictable. Departments can budget for routine maintenance and repairs, avoiding unexpected operating lease end charges.
- Potential for Longer Usage: Owned vehicles can be kept in service beyond typical lease terms, if properly maintained. This can lead to lower long-term costs, making the initial purchase price more cost-effective overall.
However, purchasing vehicles also comes with its drawbacks:
- Higher Upfront Costs: Purchasing requires a significant capital investment, which may limit the number of vehicles an agency can buy at once.
- Depreciation: Patrol vehicles experience rapid depreciation, affecting their resale value, which can be influenced by mileage, condition, and market factors.
- Potential for Technological Obsolescence: Rapid advancements in vehicle technology can lead to purchased vehicles becoming outdated sooner.
- Financing Challenges: Securing financing for a large fleet purchase can be challenging, especially for newly formed departments or those with limited budgets.
To mitigate these drawbacks, agencies can develop a comprehensive vehicle replacement plan. This plan serves as a roadmap for maintaining a healthy and effective vehicle fleet by providing a clear and repeatable process for identifying vehicles requiring maintenance, repairs, or replacement. The plan involves budgeting to ensure that funds are available when needed for replacements, potentially through dedicated replacement funds, capital improvement plans, or grants.
Ed Densmore, GACP State Certification Coordinator, and former police chief and city manager for the City of Johns Creek, emphasized the importance of establishing a vehicle replacement fund to facilitate budget forecasting and earmark funding for vehicle purchases.
“This fund can then be used to ensure future vehicle replacements have the necessary funds available to meet the needs of the department and not compete against other funding requests in a fiscal year budget,” said Densmore.
The Modern Alternative: Leasing Patrol Vehicles
Leasing patrol vehicles has gained traction as a flexible alternative for agencies seeking to manage their fleets without incurring substantial upfront costs. There are two primary types of leases: operating leases, which resemble rentals, and typically require the department to return the vehicles at the end of the lease term and lease new ones, and lease-purchase agreements, which allow agencies to spread costs over multiple years while building equity toward eventual ownership.
Understanding the differences between these programs is crucial for agencies to select the most suitable option for their specific needs.
Enterprise Fleet Management Lease
The Enterprise lease plans have specific details, but the general structure involves the agency not owning the vehicles during the lease term. The lease agreement covers vehicle acquisition and disposal at the end of the lease period.
- Operating Lease Model: Agencies lease vehicles for a fixed term (usually 3-5 years) and return them at the end, thereby avoiding long-term ownership costs.
- Access to Newer Vehicles: This model enables agencies to have access to newer vehicles more frequently, leading to shorter vehicle lifecycles. This can result in lower maintenance costs associated with older vehicles.
- Maintenance and Fuel Programs: Optional services include maintenance coverage and fuel card programs to assist agencies in managing costs.
- Resale Value Considerations: While there is no specific mileage cap, higher mileage can negatively impact the vehicle’s resale value, potentially affecting the cost of the lease.
- Potentially Higher Total Cost Over the Long Term: While monthly payments may be lower, the total cost of leasing vehicles over several lease terms can surpass the cost of buying and retaining them for a longer period. Additionally, agencies must consider the expenses of installing new emergency upfit equipment or transferring existing equipment to the newly leased vehicles.
Enterprise’s fleet management model is most suitable for agencies seeking newer vehicles and professional fleet oversight. However, agencies that prefer to own their vehicles for an extended period may find this lease structure less appealing.
Lease-purchase programs are a financing option that enables government agencies to acquire vehicles and equipment without incurring substantial upfront costs associated with direct purchases. This strategy is known by various names such as tax-exempt leasing, municipal leasing, and the “dollar buy-out” lease plan.
These programs are ideal for agencies seeking the benefits of financing while ensuring ownership at the end of the lease term. They offer more financing flexibility than outright purchasing while allowing agencies to bypass the limitations of operating leases.
Georgia Municipal Association (GMA) Direct Lease Program
The GMA offers a lease-purchase program tailored to municipalities.
- Lease-to-Own Structure: Unlike operating leases, payments made during the lease term contribute to eventual vehicle ownership.
- No Large Upfront Capital Investment: Instead of paying the full cost upfront, departments can allocate their budget over time, making fleet management more financially manageable. This allows agencies to acquire new vehicles without waiting for budget cycles to permit full purchases.
- Government Tax-Exempt Financing Rates: The program provides lower interest rates compared to commercial leasing programs, offering an advantage for municipalities.
- No Debt Obligation: Unlike traditional loans, lease purchases are often categorized as “non-debt obligations,” making them easier to implement without significantly impacting a municipality’s overall debt capacity.
Hiram Police Chief Mike Turner reached out to GMA to establish a lease purchase agreement for the department’s new patrol vehicles. Chief Turner explained that this involved financing the purchase and installation of all the equipment, including the graphics package for the vehicles.
He was impressed by the ease with which they obtained the loans, stating, “It was a matter of picking up the phone and speaking with our representative at GMA. He guided me through the entire process without our finance or other personnel involved.”
Interestingly, at one point, Chief Turner leased vehicles from Enterprise. He highlighted the challenges they encountered, particularly when one of their vehicles was damaged or totaled. Additionally, at the end of the lease, the department had to buy out the vehicles they had been leasing for years if they decided not to renew the lease and wanted to keep them.
Chief Turner concluded that working with GMA was a more straightforward process, as they were well equipped to manage such situations for departments. Ultimately, the city ended up with the titles of the vehicles, which were owned outright.
The Association of County Commissioners of Georgia (ACCG) offers a government lease program similar to that offered by GMA but specifically tailored for county law enforcement agencies.
According to their website, ACCG has financed vehicle and equipment projects ranging from $20,000 to $5 million.
Brent Williams, ACCG Business Development and Customer Relations Associate, explained that their program enables counties to finance the purchase of equipment without incurring county debt.
Dealership Municipal Lease-Purchase Programs
Many automakers offer specialized lease-purchase programs tailored for government agencies. These programs are accessible through their franchised dealerships and are designed to assist agencies in maximizing their annual budget for essential vehicle and equipment purchases. The leases offer various advantages, including low tax-exempt interest rates, flexible repayment terms, the absence of down payment or security deposit requirements, and no long-term debt obligations.
- Lease-to-Own Structure: At the lease’s end, the department has ownership of the vehicles for a nominal fee, usually a $1 buyout.
- Streamlined Communication and Problem Solving: Dealerships offer a single point of contact for vehicle acquisition, financing, maintenance, repairs, and disposal. This centralized approach simplifies communication and problem-solving, especially when issues arise like maintenance needs, warranty claims, or order discrepancies. Having a trusted dealership can lead to quicker resolutions and reduced bureaucratic hurdles.
- Community Engagement and Goodwill: Building strong relationships with local dealerships can positively affect community relations and contribute to the local economy.
Jessica Farriba, Government Sales Manager at Akins Ford Dodge, expressed a concern that while Enterprise lease programs can be helpful for some agencies, the agency may miss the opportunity for a one-on-one relationship with a government salesperson during the buying process.
The GMA, ACCG, and dealer municipal lease programs are particularly suitable for agencies seeking financing benefits while ensuring ownership at lease termination. These programs offer greater financial flexibility compared to outright purchasing and allow agencies to avoid the constraints of operating leases.
Making the Right Choice
The decision to purchase outright or lease, coupled with selecting the right leasing program, hinges on the agency’s financial resources, fleet management capabilities, and operational priorities.
- Buying patrol vehicles outright is a strong choice for agencies with the budget to cover upfront costs. It offers full ownership, long-term value, and eliminates ongoing payments. This approach is ideal for departments with a structured replacement policy and the resources to manage the fleet in-house.
- Leasing through Enterprise is a suitable choice for departments that prioritize professional fleet management and benefit from frequent vehicle turnover. This operating lease option ensures a modern patrol fleet without the administrative burden of in-house oversight. However, long-term costs may be higher, and a clear exit strategy may be necessary.
- Agencies that prefer to work toward vehicle ownership can benefit from GMA, ACCG, and dealership municipal lease-purchase programs. This option is ideal for departments seeking a balance between budget management and long-term asset retention. However, interest and fees can add to the total cost.
Roz Icenhour
Roz Icenhour recently joined the staff of the GACP after a 30+ year career in government automotive sales. Over the course of her career, she worked closely with public safety agencies across the state to provide mission-ready vehicles and guidance on fleet procurement. With decades of experience navigating municipal purchasing processes and understanding the unique needs of law enforcement fleets, Roz continues to support Georgia’s police departments with the same dedication that defined her career.
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