This section will answer the most frequently asked questions about Lease $MartŪ. If you feel that the answer to the question is not clear enough, require further explanation concerning the question, or would like to pose a question for this Web site, please contact the Lease $MartŪ Manager.
- What is the difference between "GS $MartŪ" and "Lease $MartŪ?"
Designed with installment purchases in mind, the GS $MartŪ program offers tax-exempt interest rates which are typically half of current commercial lending rates. The program is similar to that of a personal vehicle or mortgage loan; pre-approved lenders, who post their lending rates on the program's Web site on a weekly basis, finance State of California purchases and are repaid the principal, plus interest, over a set term. Title passes to the State upon acceptance of the assets.
Lease $MartŪ works on the same premise; pre-approved lessors offer lease factors based on a "vanilla" scenario via the program's Web site and provide funding of State of California financed leases at commercial interest rates. The major difference with Lease $MartŪ is that title to the assets never passes to the State (except in rare instances when the State exercises its Purchase Option) and the assets are returned to the Lessor at the end of the term.
- Who selects the Lessor for a specific deal - is it the agency or the Lease $MartŪ Manager?
This is the most common question received by the Lease $MartŪ Manager.
The Lessor is selected by the agency. The Lease $MartŪ Manager is available to discuss the returned quotes and make recommendations based on the specifics of the deal, but will not make the final selection on behalf of the agency.
The suggested steps for obtaining a Lessor can be found at the Policies and Procedures page.
- How does a new Lessor become "qualified" to participate in Lease $MartŪ ?
This process can be located at the Lessor Qualifications Proposal site.
- Are there any restrictions regarding minimum costs or length of term?
Lease $MartŪ was developed to accommodate a need for quick and efficient leasing by state agencies and local governments. Thus, to utilize Lease $MartŪ to its fullest potential, a minimum of $50,000 per purchase order has been set regarding costs. Regarding term, all assets leased through Lease $MartŪ must have a minimum term of one year. Leases of a year or less are considered rentals and do not qualify for the Lease $MartŪ program.
|
