A TRAC (Terminal Rental Adjustment Clause) is a lease on vehicles intended for commercial use more than half of the time. TRAC leases reduce the high cost of equipment to low monthly payments, thus allowing you to get access to the equipment you need at the lowest possible rate. TRAC leases can serve as an entryway to gaining your commercial vehicles or equipment without a large, upfront capital investment.

With a TRAC lease, 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. At the end of your lease, you have the option of buying the leased vehicles at the predetermined residual price.

Benefits of TRAC Leases for Commercial Vehicles

  • Conserve your operating funds
  • No large downpayment required
  • No initial outlay to cover sales tax (in most states)
  • Avoid tying up your credit lines
  • Affordable, fixed monthly payment
  • Option to purchase equipment at end of term

After you find your commercial vehicle or equipment, apply for commercial vehicle financing from Trans Lease. When your credit is approved and terms are agreed upon, we purchase equipment selected by you. The vendor invoices Trans Lease, which retains the title to the equipment. You lease the equipment for a specified term, making fixed monthly payments.

Once your TRAC lease ends, you have several options. If you’d like to become the owner of the equipment or vehicle, you may purchase it for a predetermined residual value, which is the remaining balance of your equipment after your previous payments. You may continue to lease the equipment at a reduced rate with payments based on the residual value amount.

If you no longer need or want the equipment, you may return the equipment to Trans Lease, where we will sell the equipment to a third party. If the sale nets an excess of what you owed, you will be paid that amount. If the sale is for less than what was owed, you will pay Trans Lease the difference as an additional payment.

Frequently Asked Questions

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