Terminal Rental Adjustment Clause
Commercial use greater than 50%.
Little to no money down​.
Lower monthly payments​.
Walk away and keep the equity.​

Financing - Skip Payments.

Terminal Rental Adjustment Clause (TRAC) Lease

For Commercial use greater than 50% of the time.

How it Works

  • Lease equipment for set term at fixed monthly payments​  
  • At disposition:​
    • Purchase equipment (set residual value)​
    • Continue to lease equipment based on residual amount​
    • Return equipment​
    • Gain/loss of equity

Benefits

  • Little to no money down​
  • Monthly payments are fully tax-deductible​
  • Lower monthly payments​
  • Sales tax is paid out over the term of the lease​
    • Retain more cash-on-hand​
  • Walk away and keep equity​

Example

Unit2020 Utility 3000R w/o unit = $54,000
Term72 Months
Residual20%
Rate6.25%
Monthly Payments$777
Total Interest$12,766
Total Cost$66,766
(*Illustration only. Based on approved credit.)