Airport executives and fire chiefs face increasing pressure to modernize their ARFF fleets to meet evolving regulatory requirements, all while managing constrained capital budgets and competing operational priorities. Investing in a new ARFF truck is critical to maintaining compliance and protecting passengers, but funding that investment doesn’t have to strain your budget.

When most people think of financing, they imagine borrowing an asset for a set period and returning it at the end, often with high costs and limited flexibility. But financing an Airport Rescue and Fire Fighting (ARFF) truck through Oshkosh Airport Products is a different story.

Our Financial Solutions Program, through PNC Bank, offers a range of flexible financing options designed specifically for airport authorities. With competitive tax-exempt rates, no documentation fees and customizable payment schedules, ARFF truck financing can be easier and more affordable than you might think.

What Makes ARFF Financing Unique

To fully understand the advantages of financing an ARFF truck, it helps to know exactly what a municipal lease is and the key elements that make municipal leases work for airports: tax-exempt interest and the non-appropriation clause.

Municipal Lease Basics

A municipal lease is essentially a financing agreement where the airport authority (lessee) gains ownership of the ARFF truck while the lessor (PNC Bank) holds a security interest. Once all payments are completed, the airport has lien-free ownership of its truck.

Tax-Exempt Interest

Because interest on municipal leases is federally tax-exempt, airports benefit from lower financing costs. These tax savings are passed along as reduced interest rates, typically much lower than commercial loan rates.

Non-Appropriation Clause

The non-appropriation clause gives airports the flexibility to end lease payments at the close of an appropriation period if funding isn’t available. It also allows the lease to be treated as a current expense rather than long-term debt, which in most states means approval can be secured without a costly or time-consuming voter referendum.

Key Benefits of Financing an ARFF Truck

Financing an ARFF truck can provide airports with financial and operational flexibility while keeping first responders fully equipped. Here’s how:

Preserve Capital

Airports can acquire a high-value ARFF truck with only a fraction of upfront costs, spreading the investment over multiple budget periods. Leases also do not require down payments and tend to have faster processing times and lower legal and administrative expenses than bonds or grants.

Take Advantage of Prepay Discounts

In a lease, PNC Bank prepays the order and becomes eligible for Oshkosh Airport Products’ prepay discount program, which reduces the cost of the ARFF truck and lowers annual payments. A lease with prepay discounts is generally more cost effective than a bond or grant financing that does not feature prepay discounts.

Defer Payments to Align with Future Budgets

Financing can delay payments for up to a year (or longer in certain cases), allowing airports to secure trucks at today’s prices and interest rates while paying in future budget cycles. This is ideal for airports managing tight budgets or long-term fleet planning.

Maintain Critical ARFF Fleet Replacement Schedules

ARFF trucks are among the most valuable public safety assets an airport can own. Financing enables an airport authority to adhere to its fleet replacement plans with warranty-backed models featuring the latest ARFF technology. Maintaining fleet replacement plans are critical in keeping pace with evolving safety and performance standards. 

Learn how our Oshkosh Airport Products Dealership Network supports ARFF truck financing, maintenance and aftermarket solutions, helping ensure your airport gets specialized guidance every step of the way.

ARFF Truck Financing

The lease purchase plan is a solution similar to a traditional loan with added benefits but is specifically designed for municipalities and airport authorities. End of term balloon payment lease options are also available to further decrease yearly payment schedules. 

A lease purchase plan allows the airport to gradually acquire ownership of its ARFF truck over a term of two to 15 years. Benefits include:

• 100% Financing with no documentation fees
• Deferred payment options to simplify budgeting
• Competitive tax-exempt interest rates
• Flexible payment schedules
• Avoidance of costly and time-consuming bond or grant approvals

Is Financing an ARFF Truck Right for Your Airport?