Question: What is a TRAC lease?

Answer: The TRAC lease is a financing tool created by legislation and aimed at helping the trucking industry and most commercial vehicle users realize the TAX advantage of leasing. In today's market, businesses place emphasis on the assest's use, instead of its ownership. Leasing allows businesses to use an assest without accountability, for tax purposes, as the owner.

Question: Whenever I hear about leasing I am told you must have a fair market value option, or atleast 20% residual at its end. Is this true?

Answer: False! With a TRAC lease there is no mandatory residual. Furthermore, just like a loan, a TRAC lease can be fully amortized, meaning on a five year lease you make 60 monthly payments and that's it.

Question: With a loan, I make payments and in the end I don't have to give the vehicle back. What happens at the end of a TRAC lease?

Answer: With a TRAC lease we provide you with the same comfort. The TRAC lease combines the benefits of both lease and loan. It provides leasing benefits of a lower monthly payment and the loan benefit of ownership opportunity at the end of the term.

Question: How much down payment is required to get into a TRAC lease?

Answer: Our goal is to get customers into their equipment for the first and last payment in advance. This is approximately 5% down, as opposed to a loan, which is normally 10–15% down.

Question: What about my taxes? On a loan I can take depreciation and interest expense. What can I do about a lease?

Answer: With a TRAC lease, not only do you have lower payments throughout the term, the entire rental payment is fully tax deductible (essentially depreciation and interest).

Question: Can the TRAC lease work for me?

Answer: YES! With a low down payment, fully taxed deductible lease payments throughout the term, and without the worry of an unknown residual... the TRAC lease is the best way to finance your next purchase.