The California Air Resources Board now is offering a lease-to-own financing opportunity designed to encourage small business owners to replace their older diesel trucks with new equipment. The objective of this program is to encourage early compliance withC ARB’s on-road diesel vehicle and tractor-trailer greenhouse gas regulations.
“This is a program that benefits small fleets and owner-operators,” says Mary Nichols, CARB chairman. “It provides them with an additional way to pay for a cleaner truck, even if their credit isn’t stellar.”
Leases, which are used widely in the trucking industry for managing cash flow, combine the tax advantages of leasing while retaining the option to purchase the leased equipment in the future, an attractive alternative for smaller owner-operators who may not meet stringent borrowing standards to comply with diesel truck and bus regulations.
“Making upgrades easier to obtain and more convenient is essential to successfully implementing California’s clean air standards,” says State Treasurer Bill Lockyer, chair of the California Pollution Control Financing Authority. “This program does that and gives truckers more choice in financing their upgrades.”
Prior to adding this option, there already have been 1,079 loans issued to purchase diesel equipment for a total of $66.3 million in financing by participating lenders to get cleaner trucks on the road.
For eligibility determination and an updated list of participating financial institutions, go to www.treasurer.ca.gov/cpcfa/calcap/contributor/lenders.pdf. For more information, go to www.treasurer.ca.gov/cpcfa/calcap.asp, call 866-634-3735 or e-mail [email protected].
