Hybrid Government Leasing

Leasing Types:

Hybrid Government Leasing

What is a Hybrid Government Lease?

Hybrid leases in government leasing represent an increasingly sophisticated approach to asset financing, blending characteristics of both capital and operating leases to optimize budgetary flexibility. 

These structures allow public sector entities to strategically allocate capital, manage lifecycle costs, and maintain compliance with fiscal policies and regulatory frameworks. As agencies face tighter fiscal constraints and demand more efficient use of resources, hybrid lease models present a compelling alternative that aligns long-term infrastructure needs with short-term budget realities.

Types of Hybrid Leases

Split Term Leases
  • Structure: A portion of the lease term is fixed, and the remaining term includes renewal options or variable terms.
  • Use Case: Allows flexibility in budgeting while preserving capital. Often used when funding is not guaranteed over the long term.
  • Example: A 1-year base lease with optional four (4) -year renewals
Inclusive Leases
  • Structure: Lease includes both the asset and associated services (e.g., maintenance, software updates, warranty)
  • Use Case: Popular in technology, medical, and fleet leasing, where lifecycle services are critical
  • Benefit: Offers enhanced budget planning and risk management

Who Uses a Hybrid Leases?

  • Agencies whose funding has not been appropriated
  • Government-Owed, Contractor-Operated models (GOCO)
  • General Services Administration (GSA)
  • For-profit agencies (e.g. Post Office)
  • Combined municipal and federal agencies
  • Airport authorities
  • Embassies
  • Consulates 

Obtain a Hybrid Quote Now

For a detailed quote, please call Government Leasing, LLC on our toll-free line: +1 (800) 822-8070.

If a Request for Quote (RFQ) or Request for Proposal (RFP) has been issued, please include it—along with equipment and maintenance pricing—as it typically addresses most required details. Based on this information, we can provide a tailored quote.

Upon acceptance of the quote and receipt of a purchase order with acceptable terms, Government Leasing, LLC will prepare and send the necessary documentation for signature.