What is a TRAC Lease?
A lease on vehicles intended for commercial use more than 50% of the time. You have the option of buying the leased vehicles at a predetermined price when the lease term expires. Trans Lease retains the depreciation benefits and passes the tax savings along to you in the form of lower lease payments. Lease payments are fully tax deductible by the lessee.
How to obtain capital equipment without a capital investment:
A Trans Lease TRAC (Terminal Rental Adjustment Clause) Lease reduces the high cost of equipment to low monthly payments. It allows you to obtain the equipment you need at the lowest rate.
Conserve your operating funds:
There are some real benefits with a TRAC Lease. No Large down payment is required. In most states, there may be no initial outlay to cover sales tax. There’s no tying up your credit lines either. You get the equipment you need for a fixed monthly payment that can be significantly lower than the payment available on equipment loans or other lease agreements.
Here’s how a TRAC Lease works:
When your credit is approved and terms are agreed upon, we purchase equipment selected by you from a vendor you designate. The vendor invoices Trans Lease, which retains the title to the equipment. You lease the equipment for a specified term at fixed monthly payments.
When your TRAC Lease ends, you have three options:
- You may purchase the equipment for a predetermined “residual value”
- You may continue to lease the equipment at a reduced rate with payments based on the residual value amount.
- You may return the equipment to Trans Lease, Inc.
If the net proceeds upon disposition of the equipments exceeds the residual value owed, we will pay you the difference. If the net proceeds upon disposition are less than the residual value, you will pay the difference to us as an additional payment.
TRAC Leases are only one of the ways we can help you.
There are other lease services available through Trans Lease, just click here to learn more about them, or contact us directly at 877-600-6423.