TRAC Lease or Loan? We Lay Out Both.

A TRAC (Terminal Rental Adjustment Clause) lease is designed for over-the-road vehicles: you and the lessor agree on the vehicle’s residual value up front, which can lower your monthly payment compared with a loan.

With a loan, you own the vehicle from day one and build equity with every payment, with no residual due at the end of the term — a good fit if you plan to run it for the long haul. With a TRAC lease, the residual value is set up front, which usually means a lower monthly payment — a good fit for managing monthly cash flow. Which is better depends on your tax position and how long you plan to keep the vehicle.

It depends on your tax position and how long you plan to keep the vehicle. We walk through both options side by side with your numbers, and you should confirm the tax treatment with your accountant.

Yes. School districts, cities, and transit agencies can use a municipal lease. See our school bus financing and transportation financing pages for more.

Yes. Depending on the equipment and how you plan to use it, we can also structure a capital or operating lease. See our commercial financing page for the full list of structures.

Smaller requests can go application-only: a credit application, recent bank statements, and a short company overview. Larger requests use our full-financials application. Both are on our Resources page.