Enterprise Lease Agreement

Village of Pleasant Prairie Enters Vehicle Lease Agreement with Enterprise
Posted on 11/01/2021
Village staff brought a new vehicle leasing strategy to the Village Board on November 1, with plans to replace some Village-owned cars, trucks, and vans with leased vehicles. The proposal received unanimous approval from the Village Board, giving the Village Administrator authorization to enter into a Master Equity Lease Agreement, Indemnity Agreement, and Consignment Auction Agreement between Enterprise Fleet Management, Inc. and the Village of Pleasant Prairie.

“Historically, the Village would purchase new vehicles at the government rate and keep them for 20 or more years,” said Nathan Thiel, Village Administrator. “The new lease agreement affords us up-to-date vehicles with the latest safety technology and other enhancements that help the vehicle perform more efficiently, with less maintenance, fuel, and little to no cost.” 

The Village of Pleasant Prairie began investigating the idea of leasing mid-size and light-duty vehicles because a number of municipalities in Wisconsin have had success with similar programs. The program will reduce the amount of maintenance and costly repairs associated with owning a vehicle for over 20 years. The agreement allows Enterprise to buy vehicles at a government rate, which is less expensive than the general public purchase price. Enterprise will lease the vehicles to the Village and resell the vehicles on public auction at the end of the lease cycle. The Village will retain the proceeds from the vehicle sales, essentially recouping the leasing fees paid to Enterprise. 

Enterprise has experience selling vehicles at wholesale auctions and will assist Pleasant Prairie in selling approximately 55 Village-owned vehicles from Public Works, Village Hall, and RecPlex. In addition, the Village will begin leasing pickup trucks, one-ton flatbed trucks, mid-size SUVs, transit vans, passenger vans, and ADA vans with lease cycles between one and five years. If the agreement goes well, the Village could expand the leasing program to additional mid-size and light-duty vehicles in Police and Fire and Rescue.
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