Terminal Rental Adjustment Clause (TRAC) leases are the most commonly used instrument for commercial vehicle leases. They offer lower payments than retail loan structures and multiple options at lease-end, including acquiring the vehicle or receiving the excess proceeds upon Daimler Truck Financial’s sale of the vehicle (if applicable).
If you prefer low payments, a fixed residual value with ownership opportunities at lease maturity and depreciation is not a business need, a TRAC lease might be the best finance option for you. If you are concerned about open-ended residual risk, then a Modified TRAC lease may be what you need, since it caps your exposure to the residual risk. A Modified TRAC lease is similar to a TRAC lease, but it can be classified as an operating lease for financial reporting purposes.
Terminal Rental Adjustment Clause (TRAC) and Modified TRAC leases offer low payments, pre-determined residuals, multiple lease-end options, and many terms and residual plans. At the end of a lease, you can purchase your truck for a pre-determined residual amount or DTF can sell the vehicle and provide you with surplus greater than the residual value. If the value at lease-end is less than the residual, you pay the difference, plus DTF’s selling expenses. However, with a Modified TRAC lease, you only pay up to the specified, maximum liability.