a special lease structure for operators of trucks and busses
a Tax Lease on vehicles for commercial use in which you have the option of buying the leased vehicles at a predetermined price when the lease term expires
Used to describe certain leases restricted to the motor vehicle leasing industry; a lease that has what is called a "Terminal Rental Adjustment Clause," meaning that ownership passes to the lessee with the payment of the TRAC, which usually equates to the buyer's assumed residual value. Despite the final and mandatory purchases, TRAC leases are specifically regarded as true leases for tax purposes (i.e., tax benefits are accorded to the lessor).
A type of lease used specifically for titled motor vehicles or trailers that specifically contains a terminal rental adjustment clause (TRAC) and otherwise complies with the guidelines of the tax laws.
A tax-oriented lease of motor vehicles or trailers that contains a terminal rental adjustment clause and otherwise complies with the requirements of the tax laws.
A motor vehicle lease with a terminal rental adjustment clause (i.e., an open-end lease) which meets the requirements of section 210 of TEFRA (as amended by TRA).
(Terminal Rental Adjustment Clause) Many of the benefits of a true lease, but designed specifically for over-the-road vehicles like trucks, tractors & trailers. Special provisions of the tax code allow for pre-determined end-of-lease valuations (unlike a true or FMV lease). Generally the most aggressive pricing for vehicles. Lessee bears some risk if the equipment does not bring the anticipated resale value at lease end. May include FMV or continued rental options. Also see First Capital's "Lease Types" page for a more complete discussion of this topic
A tax-oriented lease of motor vehicles or trailers that contains a terminal rental adjustment clause and otherwise complies with the requirements of a guideline lease.
An open End Commercial Lease with a Terminal Rental Adjustment Clause. TRAC Leases are limited to motor vehicle and trailers leased to businesses that use a minimum of 50% of the time for business purposes. TRAC leases have none of the penalties associated with other leases and up to 100% of the monthly payment can be tax deductible. At the beginning of the leases a residual is determined and will be used to determine the monthly payment. Upon lease termination you can purchase the equipment for the preset residual, return the equipment, or trade it in for a new purchase. Whether you trade it in or return it, you will receive any proceeds for the sale or pay the difference to satisfy the preset residual.
A True Lease of motor vehicles that passes ownership to the Lessee with payment of the buyer's assumed Residual Value.
A type of tax lease containing a TRAC, which is designed for the vehicle leasing industry as it can only be used when leasing automobiles, trucks, or trailers.
