University Services Lease Purchase Program
The University Services Lease Purchase Program provides a financing option for departments. It is ideal for emergency situations or unanticipated equipment purchases. Lease periods range from one to five years and leases can be paid off without penalty by paying the balance (remaining principal plus current month's interest). Currently, the fixed interest rate is 3.0%.
Only tangible items may be purchased through the Lease Purchase Program. Nontangible expenses such as services, licenses, shipping, and training are not allowed.
Prior to entering into a third party lease agreement, contact a Purchasing buyer to discuss the University Services Lease Purchase Program—it could save university resources. To determine the correct buyer to contact, view the Commodities Listing.
Equipment purchased through the Lease Purchase Program must be covered by a maintenance agreement during the lease period. Equipment may not be removed from MSU until the lease is paid in full and ownership is transferred to the department. Limited funds are available on a first come first served basis.
- Current fixed interest rate is 3.0%
- Flexible terms
- No penalties for early payoff
- Avoid possible: East Lansing taxation, higher interest rates, fees, down payments, and early payoff penalties
- MSU owns the equipment
- Save the university money
When creating the purchase requisition, include a message in the “notes” section stating the order is to be purchased through the University Services Lease Purchase Program. Indicate if there is a portion of the total that is to be funded and how much, and how long you would like to lease the equipment (usually three to five years).
You can estimate costs by using a smartphone mortgage app or call our office for estimates.
Billing is done using the collector feed process. Payments are flexible and a down payment can be made but is not required. Typically, payments are made monthly. Accelerated payments are also an option.
Lease Pay Off
When the lease is paid off the item belongs to the department. In the case of a capital asset (>$5,000), an asset transfer e-Doc is initiated to transfer ownership from University Services to the department.
Billing history is available.