FINANCED LEASES - 3440

California government entities are permitted to enter into financed leases as described in the Uniform Commercial Code, Section 2A, (commonly referred to as “operating leases”) using the Lease $Mart program. Approved lessors, leasing plans, and lease factor rates are listed on the Lease $Mart Internet site. Contact a SFM representative prior to initiating a procurement that involves a lease or prior to initiating an assignment of a lease that was financed using the Lease $Mart program.

SAM 3700 requires that a lease/purchase analysis be performed prior to entering into a lease. This requirement is also applicable for leases completed using the Lease $Mart program.

If there is any chance that an entity may want to own equipment at the end of a lease, it is strongly recommended to either purchase the equipment outright or utilize the GS

$Mart program to make an installment purchase. The Lease $Mart Internet site provides a payment calculator that can help to determine the most cost-effective financing method.

For more detailed procedures please see Chapter 9 of: State Contracting Manual Volume 2 for Non-IT Goods

State Contracting Manual Volume 3 for IT Goods and Services