TRAC Lease : How They Work ?
TRAC lease transactions are an alternative to traditional loan financing for companies, allowing them to purchase vehicles without having to take out a loan. TRAC leases, which stands for Terminal Rental Adjustment Clause Lease, are used primarily for businesses that use heavy-duty trucks and other commercial vehicles in their operations.
Rather than taking out a loan to purchase the vehicle, with a TRAC lease, you make monthly payments to the lessor over an agreed-upon period. At the end of the lease term, you have the option to buy, renew or return the vehicle.