|
Open End TRAC Lease |
Closed End Lease |
Loan / Bank Financing |
Cash |
| Low Up Front Costs |
Advance payments plus rental tax (if applicable) and doc., title & license fees. If in a sales tax state, the tax may be added to the capital cost. |
Security Deposit, Down Payment or Cap Cost Reduction plus first and/or last months payment, rental tax or sales tax (if applicable) and doc., title & license fees may be required. |
Down Payment, sales tax and doc., title & license fees |
Total vehicle price plus sales tax and doc., title & license fees |
| Mileage Limitations and Penalties |
None |
All miles beyond predetermined annual mileage limit are charged to you. |
None |
None |
| Early Turn-in Limitations and Penalties |
None after initial 12 months. You are responsible for the remaining lease value. |
Turn-in of vehicle prior to fixed term (set at onset) will require penalty payment as described in agreement |
You are responsible for any remaining loan value plus any applicable fees. |
None |
| Excess Wear & Tear Limitations and Penalties |
None |
You will be required to turn the vehicle in with certain requirements. You will be charged for any excess wear & tear (possibly including tire wear, paint chips and scratches and mechanical repairs) |
None |
None |
| You Retain Profits of Resale |
If you term the lease at any time after the initial 12 months, the Terminal Rental Adjustment Clause (TRAC) means that the difference between the net sale value of the vehicle and the remaining lease value is either refunded or charged to you. |
At the end of the fixed term, any end-of-lease charges will be assessed. The Lessor retains any profit from resale. |
At any time, you may pay the remaining loan value plus any applicable fees. You retain profits of resale. |
You retain profits of resale. |
| Lowest Life Cycle Cost |
With the Open End TRAC, you only pay for the portion of the vehicle used, plus interest and fees, thus minimizing total life cycle expense. In addition, tax benefits further decrease total life cycle cost. |
You pay for the vehicle, interest and fees over the set lease term. At the end of lease, additional penalties may apply and the Lessor retains all profit from resale. Tax benefits further decrease total life cycle cost. |
You pay for the entire price of the vehicle plus financing and fees. |
You pay for the entire price of the vehicle. |
