TRAILER FINANCING OPTIONS

TRAC Lease New or Used Trailers

• Terminal Rental Adjustment Clause is the residual value purchase price of the trailer at the end of the lease term.

• Tax oriented lease where Lessor is considered the owner of the equipment and therefore entitled to the trailer depreciation benefits, and passes on to the Lessee a lower lease rate and purchase price as a result.
• All lease payments made by the Lessee are deductible expenses for federal tax purposes.
• At lease termination the Lessee may either purchase the trailers for the stated TRAC amount or return the trailers to the Lessor for sale. If the Lessee does not purchase the trailers and the Lessor has to sell them, any surplus is credited to the Lessee, and shortfall must be paid by the Lessee to the Lessor.
• May be treated as capital leases or operating leases for financial statement accounting purposes depending on the structure by the Lessee.
• Must be 100% financed. Lessee cannot have any down-payment or equity in the transaction.
• Fixed interest rate for the term of the lease transaction.
• Only for over-the-road vehicles.

• Also known as a $1.00 buy-out lease, quasi lease, guideline lease, non-tax lease, etc.

• Treated like a term loan for the Lessee's financial statements.
• Lessee is the owner of the trailers and therefore entitled to the interest expense and trailer depreciation. Lessor is just the lien holder.
• Can be 100% financing or may include a down-payment.
• Fixed interest rate for the term of the transaction.

• TRAC and Standard Finance Leases   

• 5 to 7 Year Terms
• Semi-Trailer Types - Both New and Used
  45', 48' and 53' Dry Vans including various equipment options
  48' and 53' Flatbeds including specialty flats and light weight flats
  48' and 53' Refrigerated Vans including various equipment options

We Can Be Your - FUNDING SOURCE or ONE STOP SHOP!

   Your Funding Source

• We use your exact specifications, trailer manufacturer and pricing.

• We contact and negotiate with the banks and finance companies, and quote you the best deal offered in the marketplace.
• We arrange for the bank or finance company to contact you directly to discuss
  your confidential credit information.

   One Stop Shop

• We consult with you to develop the trailer design specifications you require.

• We negotiate with your trailer manufacturer or the many we represent with
  our preferred pricing to get you the best quality least expensive trailer.

You Win Either Way

• Gives you new sources of funding

• Protects your existing sources availability
• May reduce your cost of funds
• Eliminates time spent on new trailer acquisitions
• May reduce your current price of trailers