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Financing & Leasing

Bus Financing, Bus Leasing Options

As fuel prices continue to increase and funding is a constant challenge, more and more public and private agencies are considering financing as the primary source of funding. National has developed a variety of programs to fit your specific needs.

We have programs designed to work with no money down or up to 50% down and then have terms from 1 year up to 7 years. We also offer a balloon payment on the end or a set residual for National to purchase the buses back so you can update your equipment. NBS offers "in-house" financing for a variety of credit, making the process extremely simple. All you need to do is let your salesman know and they will do the rest.

For definitions of the types of leases available click here for more information.

*Rates based on approved credit and current rates Credit Application NBS Inventory

Program Rates

National Bus Sales & Leasing
Commercial Rates24 Months36 Months48 Months60 Months72 Months84 Months
Loan Rate 5.9% 5.5% 5.5% 5.6% 5.85% 6.0%
Loan Rate Factor            
Monthly Payment $ 1,785.47 $ 1,229.60 $ 956.00 $ 797.72 $ 689.67 $ 613.53
Trac Lease Rate 5.75% 5.25% 4.95% 4.95% 4.95% 4.95%
Trac Lease Rate  
Monthly Payment $ 1,458.26 $ 1,011.39 $785.13 $ 652.20 $ 563.81 $ 498.70

Bus Leasing Options and Definitions

Leasing Basics & Definitions
National Bus Sales Bus leasing options and definitions

What is a lease?

A contract to use equipment for a specified length
of time at an agreed upon payment.

Lessor (Finance Company)

Owner / Secured Party of the Equipment

Lessee (You/Your Company)

User of the equipment

80% of U.S. Companies use leasing to acquire capital asset equipment

To view the pdf version on this information click here.


Lease Descriptions

Tax-Oriented Leases (FMV Leases)
  • A tax-oriented lease is a lease under which the lessor will be treated by the IRS as the owner of the leased property for federal tax purposes and permitted to take tax benefits (eg., depreciation deductions on the leased property)
  • Tax-oriented leases are sometimes referred to “true leases” or “guideline leases”
  • Given that the lessor takes advantage of the tax benefits under a tax-oriented lease, a lessor should be able to offer lower rental payments to a lessee than on a similar term finance or loan transaction.
  • The following guidelines must be met for a tax-oriented lease to qualify as a true lease under IRS requirements.
  • The lease term (including extensions and renewals) must not exceed 80% of the estimated useful life of the equipment at the commencement of the lease transaction
  • The equipment’s estimated residual value at the expiration of the lease term must be projected to equal at least 20% of its original value
  • Neither the lessee nor any related party can have a right to purchase the property from the lessor at a price less then its fair market value at the time of the purchase
  • Neither the lessee nor any related party can pay, or guarantee payment of, any part or piece of the leased equipment. Simple put, the lessee cannot make any investment in the equipment.
  • The leased equipment must not be “limited use” property. Equipment is limited use property if no one other than the lessee could use the equipment in a commercially feasible manner at the end of the lease term.
Non Tax-Oriented Leases
  • Generally, a non-tax oriented lease is any lease that is neither a “guideline lease” nor a TRAC lease. Because it is not a lease for tax purposes, it need not comply with any IRS guidelines
  • Finance leases or $1.00 buy-out leases
  • The lessor may still be listed as the titled owner on a vehicle but it is not the owner for federal tax purposes
TRAC Leases (Lease Purchase)
TRAC Leases
  • Tax-oriented leases, of qualified motor vehicles and trailers, with terminal rental adjustment clauses (“TRAC’s)
  • A TRAC lease must meet all of the requirements for a guideline lease, except for the TRAC provisions
  • The TRAC provisions permits an adjustment of rentals according to the amount realized by the lessor upon the sale of the leased equipment.
  • The TRAC provision allow the lessee to benefit in two ways. First, the lessee shares in the residual sales value of the equipment, Second, because the lessee effectively guarantees the equipment’s residual value, the rentals to be paid during the lease term may be lower than otherwise available.
Operating Leases
  • An operating lease is a lease that for accounting purposes is off- balance sheet. It does not satisfy any of the criteria of a “capital lease” as set forth in FASB 13.
Municipal Leases
  • Tax-exempt financing for federal, state or local municipalities including most school districts and some 501c organizations.
  • Interest rate is significantly lower then a commercial lease since the Lessor is exempt from taxes on the interest earned.


Bus Capacity

Bus Condition

Fuel Type


Select Year

Lift Equipped

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