1. #1
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    Default Truck downpayment

    So, if we want to put a downpayment on our new tanker, how much does FEMA give you for the downpayment? I heard 35% of the total cost. If not, how much can i request from them for a downpayment?
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    In 2004 it was 50% of the cost of the vehicle could be requested at the time the vehicle was ordered. All discounts received by prepayment had to be included in the audit, and counted towards the percentage matched. So as long as when the truck was fully paid for you paid at least your match (10% or 30%), then you were fine. The discount cannot eliminate your matching requirement.

    For 2005, it has changed, only 25% of the Federal Share can be requested for prepayment if required in the purchase contract. Purchasing the chassis does not count in the case of not using a single source manufacturer. It's in the Pre-Payment section of the Program Guidance, and states the full legalese version is in the Interim Rule document. Read that bad boy when you have trouble sleeping.

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    I don't know if their is an actual written percentage or not. They recommend for obvious reasons not to prepay the project, and that goes for apparatus or any other equipment you are awarded. If it's a commercial chassis, and you can save money by paying for the chassis when the manufacturer receives it, and the balance when you take delivery of the apparatus, they shouldn't hold you to a certain percentage. imo. When you request funds, they want you to spend it within 30 days or so. After 30 days they can charge you interest on unused funds.

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    If it's a commercial chassis, and you can save money by paying for the chassis when the manufacturer receives it, and the balance when you take delivery of the apparatus, they shouldn't hold you to a certain percentage.
    In 2004, not 2005. The rules are specific in 2005, no prepayment of chassis. Prepayment at order time is only allowed up to 25% of the whole price using Federal Share monies if a part of the contract with the manufacturer. And yes, only order time, not when the chassis comes in. Read the Interim Rule. In 2004 the actual percentage was 50% Federal Share at order time.

    But Rossco is right on about having to spend the money within 30 days. You didn't technically have to spend it within 30 days in years past, but you had to declare any and all interest you gained on that money, and ensure that everything added together still kept your match at least 10% or more.

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    Thanks BC, I went the wrong direction with the question. I was thinking any payments made prior to delivery of completed apparatus. Not just payments at ordering time. Do some manufacturers ask for money up front? We don't get many new trucks, but when we did order, noone ever asked for up front money. If they did, in order to keep them on the incentive plan, I wouldn't want to give much more than ernest money.

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    Not many do, but sometimes you can take advantage of a discount. We took advantage of 2 discounts in 2002 with the heavy rescue. There were no rules against anything, so I think we were the ones that brought them on. Sorry

    Anyway at that time we took both a chassis prepayment and an interest prepayment discount. And since we spent more than 10% of our own money when all was said and done (Feds $312K, us $82K), there was no problem from FEMA's end. Now you can't prepay the chassis for any reason, and you can only put 25% down if required as part of the sale. Most manufacturers will give you a discount equivalent to the interest that money earns from order time to delivery time, which is what we got. So all I can think of is have them put in the contract for 25% of the cost as earnest money at delivery time and use the discount to put something else on the truck you need. Just make sure that you put in enough of your own money to match the whole project at 10% or more.

    So if truck cost $200K, fed share $190K, $50K down at order time, nets $5K over the 6 months of build time. Technically with the discount the fed share makes $195K, so you need to put in at least $10,264 for a total project cost of $205,264.

    For those that have learned something new, tell your boss you have to go home, you're full. Doesn't work for me either.

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