TRAC Leases

A TRAC lease is designed specifically for over-the-road commercial vehicles such as automobiles, trucks, vans, tractors and trailers. A TRAC lease has a Terminal Rental Adjustment Clause that guarantees your business a certain residual price for the vehicle when the lease expires. This is the most common type of lease for those who want the option of buying the vehicle for a pre-set price at the end of the lease.

How a TRAC Lease Works

A TRAC lease contains a Terminal Rental Adjustment Clause. This clause gives you a fixed price purchase option for the vehicle at the end of the lease, usually relayed as a percentage of the initial value. This clause also states that the vehicle will be sold at the end of the lease. If is sold for more than the base residual, the lessee gets the difference. If it is sold for less, the lessee has to make up the difference.

Benefits of TRAC Leases

• TRAC leases are significantly cheaper than finance leases or term loans and usually do not require a down payment.
• Lessor reaps tax benefits of ownership and passes these benefits to you in the form of lower monthly payments
• Cash can be met with special pricing options such as seasonal, step-up or step-down payments.
• You have the right to complete ownership of the vehicle at the end of the lease.
• You will be given the set lease and end value of the vehicles at the end of the term. This is referred to as the TRAC Residual Value. At the end of the lease, you can purchase the vehicle, sell it to another party, take it to the dealer of your choice, and trade it in.
• Mileage charges, alterations and other restrictions are not a concern because the TRAC Residual value is generally set very low.
• TRAC leases work for all vehicles used for business reasons. That includes trucks, trailers, forklifts, golf carts and farm equipment.

For complete information on how equipment leasing can benefit your specific business situation, Contact us today or begin the easy business credit application process for a TRAC Lease.