- Open End or Termination Rental Adjustment Clause (TRAC) Lease
- The Lessee agrees to a fixed number of payments and guarantees
the termination (residual) value at lease end. If the vehicle sells and
nets more than the residual value, the overage is refunded as excess rentals
to the lessee. If the vehicle sells and nets less than the residual value,
the shortage is paid by the lessee. This rarely happens
because the vehicle can be driven for a few extra months while the termination
value reduces. Once the termination value and market value are the same,
the vehicle is sold.
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- Open end or TRAC leases with annual declining payments are available. The payments for this type
of lease reduce for each twelve month period that the vehicle is leased. Open end or
TRAC leases can be operating leases, meaning that they are tax deductible and are not
shown as a liability on your financial statement. These leases are available with Silver or Gold
Maintenance Plans. Click here for maintenance management.
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- Closed End or Net Lease
- The lessee agrees to a fixed number of monthly payments and a defined use of the vehicle. The
lessee does not guarantee the residual or termination value at lease end. They are always operating
leases. Closed End or Net Leases are available with either the Silver or Platinum Maintenance Plans.
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- Finance Lease
- The lessee uses the vehicle for the desired term (12 to 84 months) and owns the vehicle at lease end.
This is a capital lease. Finance leases are available with Silver or Gold Maintenance Plans.
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- Types of Leases
- The lessee uses the vehicle for the desired term (12 to 84 months) and owns the vehicle at lease end.
This is a capital lease. Finance leases are available with Silver or Gold Maintenance Plans.
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