Ally TRAC Lease
The Gold Standard for Fleet Financing
Combine the tax advantages of a lease with the equity benefits of ownership. Specifically designed for trucks, tractors, and trailers.
What is a TRAC Lease?
A Terminal Rental Adjustment Clause (TRAC) lease is a specialized commercial vehicle lease. It allows you to set a residual value upfront, which lowers your monthly payments while giving you the right to any profit when the vehicle is eventually sold. It is the preferred choice for businesses that want the “upside” of ownership without the heavy upfront costs of a loan.
1. Flexible Payments
Adjust your cash flow by setting the residual value. Higher residuals mean lower monthly costs, allowing you to scale your fleet within budget.
2. Tax Advantages
Payments are generally fully deductible business expenses. Plus, save capital by paying sales tax monthly instead of upfront.
3. No Penalties
Because you are responsible for the vehicle’s end value, there are no mileage limits or wear-and-tear fees. Complete operational freedom.
The Equity Advantage: You Keep the Gain
At the end of the term, if the vehicle sells for more than the pre-agreed residual value, your business keeps the profit. This gives you the “upside” of ownership without the heavy down payment of a loan.
TRAC Lease vs. Traditional Loan
| Feature | TRAC Lease | Traditional Loan |
|---|---|---|
| Upfront Cost | Very Low (1st Payment) | 10% – 20% Down Payment |
| Monthly Payment | Lower (Residual Based) | Higher (Full Principal) |
| Mileage Limits | None | None |
| Tax Treatment | Fully Deductible Expense | Interest & Depreciation Only |
| Ownership | Option to buy at end | Immediate Ownership |
Ready to optimize your fleet’s cash flow?
Speak with our commercial leasing experts today to build a plan that fits your business. 330-753-4444
330-753-4444
*With approved and qualifying credit. Some restrictions apply. See dealer for complete details.