Some of you may not know that there are a variety of methods to look into when purchasing dispatch furniture, and agencies have a couple of different options when it comes to paying for it. Traditionally, purchasing console furniture is done by making a large purchase upfront through a purchase order, or PO, but many smaller agencies can struggle to come up with the funds needed to go this route. If you are one of these agencies, it may be time to look for alternative purchasing options.
Why Not Lease?
I recommend talking to your finance department to see if your agency could benefit from leasing the furniture. As an alternative to a purchase order, leasing or financing means that you would get the furniture through a third party leasing company and make monthly payments.
There are two basic kinds of leases to look into:
With the fair market lease, you have the option to purchase the furniture at fair market value, which is normally 10% of the original purchase price, at the end of the lease term.
With a dollar buyout lease (which tends to be more popular with most government agencies), you can purchase the furniture for $1 at the end of the lease, and the furniture is yours.
What Are the Benefits of Leasing?
The main benefit of leasing the furniture is that you would be working with an operating budget instead of a capital budget. When working with an operating budget, there are tax benefits to consider. Also, this could be included within the budget of your department already, and therefore, you would not have to go to your local city hall or city council for approval. Additionally, this type of financing can be stretched out over multiple years.
Because you would be budgeting monthly instead of paying one large lump sum at once, you can afford to acquire more furniture upfront. This is a good option if you know you are planning on expanding in the near future.
To sum it up, if you’re getting ready to make a large purchase, such as investing in dispatch console furniture, I would highly recommend talking to your purchase and finance department to see if these leasing options are available to you.