Dunno...years ago, our state Govt sold the entire state fleet to GE Finance (big cash injection in year 1 of term), and made the state agencies lease them off the operating balance sheet.
Worked for a little while, but the finance company on replacement vehicles had to pay all of the taxes that Govt agencies didn't and the cost rose drastically....and it went back to the old way.
That being said, I know families around here who would save a fortune if they gave up car ownership and hired taxis as needed.
But $1M of vehicles "lost" for 5 years is ludicrous.
My guess is that the purchase is to used up a "budget" before year end and if they don't use it, they'll get less next year.
And someone getting a cut of the purchase as kick back. Happen in both public and private sectors.