Thread: Trade-in Allowance Clarification
11-09-2013, 02:20 PM #1
- Join Date
- Feb 2002
- Cypress, TX
Trade-in Allowance Clarification
Since I've gotten a bunch of emails about this figured I'd clear up the air.
Per the FOA, Appendix C, somewhere around page 60 it says using trade-in credits as your match is a case by case basis AFTER the award and during discussion.
This is only for your 5%, 10%, or 15% match that you have to get approval to use trade-in credit in place of cash.
If you lower the price of the vehicle and use the trade-in credit to go above the grant project price you can without approval. I.E. if the tanker costs $200k and you know you'll get $10k trade-in, at 5% match you can't use the trade-in as your $10k local match to the federal $190k share.
What you can do is apply for a $190k truck, match the $9500 to the federal $180,500 and then use the trade-in to take it from $190k to $200k. Overmatch is not subject to trade-ins because you satisfied your local match in cash which is all that's required.
Also you can no longer finance your local match OR your overmatch if there is a lien against the purchased equipment or vehicle. So if you upgrade your commercial pumper to that custom chassis from a $300k award and finance the extra $100k the loan cannot be written to have a lien against that pumper. It can have a lien against the station, another vehicle, or be unsecured and that is legal. A lot of the larger vendors that self-finance are doing unsecured seeing how much cash they're getting from the grant.
Under 28 days, do the grants up but do them up right.
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