If you’re looking for low monthly payments to generate the most positive cash flow out of the revenue your trucks bring in, or you’re simply looking for a low payment to ease your expenses, you should consider a TRAC (Terminal Rental Adjustment Clause) Lease.

At the beginning of a TRAC Lease, you and Navistar Capital agree upon an amount referred to as the TRAC amount, an estimate of the equipment’s value at lease end. Having an agreed upon residual amount upfront takes the guesswork out of the market value at lease expiration.

Why Navistar Capital? Here’s an example:

Let’s say you lease an $80,000 truck for three years. At the end of those three years it is estimated the vehicle will be worth $30,000. (You will have used $50,000 worth of the truck’s value.)

That means your payments would be based on $50,000 instead of $80,000, making them significantly lower.

The benefits of a TRAC Lease are simple to appreciate

• No down payments-only one lease payment is typically required in advance
• Monthly payments are lower than traditional financing to maximize your cash flow
• A TRAC Lease is generally considered a tax-oriented lease, so you may indirectly receive some of those tax-related tax benefits in the form of lower payments
• Choose a TRAC Lease when you do not want to own the equipment, bank lines of credit are unavailable or limited or when tax depreciation isn’t a requirement