Municipal Leasing

The Road to Better Financing Starts Here

Managing your fleet needs within a constrained budget is a challenge. That’s why we offer tax-exempt lease purchase solutions for commercial vehicle financing to municipal borrowers.1,2


  • A captive financing partner dedicated to the transportation industry
  • Ease of doing business
  • Industry-leading customer service
  • Preserve traditional sources of liquidity

Solutions for Municipal Borrowers

If you’re interested in equipment ownership, new or used, a tax-exempt lease purchase from Navistar Financial may be right for you. That’s why Navistar Financial offers customized solutions for commercial vehicle financing to municipal borrowers.


  • Expedited and competitive access to capital
  • Typically, no voter approval required
  • No agency rating or bond insurance required 
  • No financial covenants required 
  • Typically, no pledge of revenue or covenant to levy additional taxes required

The Right Vehicle for the Job

Tax-exempt lease purchases are available for up to 25% more than the original equipment cost of the vehicle and body, if applicable, which can include implementation and soft cost* items such as:

  • Vehicle titling fees
  • Service solutions
  • Extended service contracts
  • Chargers for battery electric vehicles

Our tax-exempt lease purchase options are available for the same vehicles as any Navistar Financial customer.

  • New and used International Truck vehicles
  • New and used IC Bus vehicles
  • Used vehicles of all makes and models offered through International Truck dealers, IC Bus dealers and International Used Truck Centers
  • Electric vehicles
  • Trailers

* All equipment would need to be documented on the same schedule, making non- appropriation an all-or-nothing event.

Your Needs Come First

We understand that your needs may evolve over time. If you need a larger credit limit to expand your fleet, are considering refinancing other equipment, or need support with financing your next equipment acquisition, please reach out to your International Truck or IC Bus dealer to work together to find the best path forward.


  • Options for payment frequencies (monthly, quarterly, semi-annual, and annual)
  • Lease tenors of up to 144 months (with maximum term not to exceed the useful life of the asset)
  • Financing for a wide range of motor vehicle categories (trucks, tractors, trailers, school buses, etc.)
  • Notional escrow account option available upon request
  • Optional down payment

Your Rate is Locked

When buying equipment like a fleet of trucks or buses, delivery dates can stretch into the future. But rest assured, the rate you secured at the time of purchase can be locked in through the escrow option of our tax-exempt lease purchase solutions. If you choose this option, your funds can be deposited into a notional escrow account at a fixed interest rate as soon as the Lease-Purchase Agreement is closed.* Interest will begin to accrue at the date of closing, with a fixed first payment due date as delineated in the contract documents. As the vehicles are delivered (and with your authorization), funds will be released from escrow to cover the cost of the equipment.2

* Closing of the Lease-Purchase Agreement is the date when the final documents are executed and funds are deposited into escrow. Delivery occurs after closing under an escrow structure.

How to Apply

When you’re prepared to take the next step, we’ll be ready to help you throughout the entire process. Simply contact your local International Truck dealer, IC Bus dealer or International Used Truck Center and ask about tax-exempt lease purchase. A representative will collect your required information and quickly process your request.


  • Approximate transaction size in dollars
  • Collateral description
  • Proposed payment structure (for example, annual in arrears)
  • Anticipated customer acceptance date
  • Verification of eligibility

Find a Dealer

Locate the nearest International Truck or IC Bus dealer below, where you can also explore their latest inventories.

1 Financing under Navistar Financial Corporation’s Municipal Program is provided by Bank of America, N.A. (“BANA”), BAPCC, LLC, an affiliate of BANA, or another Navistar-approved funding source.
2 Program eligibility, actual payments, terms, and down payment are determined based upon creditworthiness of customer.
3 Navistar Financial Corporation does not provide or endorse any legal, tax, or accounting advice or tax strategy to its dealers, customers, or potential customers. You should consult with your own tax and accounting advisor on all such matters relating to the loan or lease financings described in this brochure. Navistar Financial Corporation 2701 Navistar Dr. Lisle, IL 60532
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