A TRAC lease is one of the most useful tools for financing titled, over-the-road equipment. It keeps monthly payments down, builds in a residual you agree to up front, and gives you a clear path to ownership at the end of the term.
Harry Fry & Associates structures TRAC leases for the trucks, tractors, boom trucks, and trailers that move iron and run routes every day, for single-truck owner-operators through established fleets.
TRAC leases are built for titled equipment that travels the road. We structure them across the units our customers run most.
TRAC stands for Terminal Rental Adjustment Clause. In plain terms, you and the lessor agree on a residual value at the start of the lease, and that residual sits at the end of the term. Because you are not financing the full value of the equipment over the term, the monthly payment is lower than a comparable loan.
At the end of the lease, you can buy the equipment for the agreed residual, sell it and settle against that number, or in some cases refinance the residual. TRAC leases are typically treated as a conditional sale for tax purposes, which often lets the lessee take depreciation, but you should confirm the treatment with your accountant for your situation.
Heavy haul carriers, crane and rigging companies running their own trucks, tree service operations, construction haulers, and specialized transportation fleets all use TRAC leases we have structured.
TRAC leasing rewards getting the residual right. Set it too high and the end-of-term buyout stings. Set it too low and you give up the payment savings. We have structured these for decades and help you land on a residual that fits how long you plan to keep the unit.
As a broker, we shop the lease across our network rather than handing you a single lessor's rate sheet. After closing, we handle the title work, lien releases, and the residual decision when the term ends.
