What is a TRAC Lease?
TRAC Leases are open-ended tax-oriented leases that contain a Terminal Rental Adjustment Clause. You can acquire commercial vehicles like trucks, trailers, cars and vans with reliable, efficient and economical TRAC leases. TRAC Leases are however restricted to the leasing of vehicles that are used for a minimum of 50% of the time for business needs.
At the beginning of the lease term, both the lessor and lessee agree upon an amount (TRAC amount) with which the lessee can purchase the vehicle at lease end. If at the end of the lease, the vehicle sells for more than the TRAC amount, the lessee benefits from a reduction in rent equal to some or all of the sales profits. If the equipment sells for an amount lower than the TRAC amount, the lessee has to make an additional payment equivalent to part or the entire deficit.
On culmination of your TRAC Lease period, you have four options before you:
Buy the vehicle at the residual amount.
Exchange it for another vehicle and add some equity to the new vehicle.
Continue the lease by paying the residual amount.
Return the vehicle.
If you would like to know more about TRAC Leasing or are interested in leasing equipment, do consider the Graphic Savings Group.
At the beginning of the lease term, both the lessor and lessee agree upon an amount (TRAC amount) with which the lessee can purchase the vehicle at lease end. If at the end of the lease, the vehicle sells for more than the TRAC amount, the lessee benefits from a reduction in rent equal to some or all of the sales profits. If the equipment sells for an amount lower than the TRAC amount, the lessee has to make an additional payment equivalent to part or the entire deficit.
On culmination of your TRAC Lease period, you have four options before you:
If you would like to know more about TRAC Leasing or are interested in leasing equipment, do consider the Graphic Savings Group.
