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Mount Pleasant OKs lease‑purchase program with American National Leasing to modernize fleet
Summary
After a presentation by American National Leasing, the council approved a lease‑purchase agreement that lets the city take title from day one, offers three‑to‑five‑year terms with a $1 buyout, and was presented with an initial interest quote of 5.3 percent; staff said the contract language was reviewed and recommended for approval.
The Mount Pleasant City Council approved a contract Tuesday to use a government lease‑purchase program offered by American National Leasing to acquire vehicles and equipment.
Police Chief introduced Eric Reid of American National Leasing, who described the program’s structure: the city holds title from day one while the leasing company holds a lien; there are no mileage limits and the program allows three‑, four‑ or five‑year terms with a nominal $1 buyout at the end of the term. Eric Reid said first payments are typically deferred up to 12 months and that agencies often have a one‑time option to refinance mid‑term if market interest rates fall.
Council members asked about the quoted interest rate (Reid cited 5.3 percent), whether the city had shopped local banks, warranty and maintenance handling, and how to structure contracts if vehicles were purchased in batches. Staff said attorney Lee reviewed the contract language and that the program’s lower points relative to the city's current lease program would be beneficial.
"At the end of the term there's just a $1 buyout and then it's yours," Reid said. Council approved the contract by unanimous vote after a motion and second.
What happens next: Staff and the police chief will coordinate procurement, work with local dealers and upfitters as appropriate, and implement the purchasing stream under the approved contract framework.
