What is TRAC Leasing?
TRAC, which stands for ''Terminal Rental Adjustment Clause'' Leasing is ''THE'' automotive financing solution for business owners.
Here are some important things to know about TRAC:
- A TRAC Lease is used for vehicles used more than 50% of the time in the trade or business of the Lessee (customer).
- A TRAC Lease is a unique version of the FMV lease. The risk and reward of ownership is transferred to the Lessee through the TRAC provision.
- A TRAC Lease has a preset residual value, virtually eliminating the Lessees exposure to a Fair Market Value settlement at lease maturity.
Advantages of getting on ''TRAC''
- Seasonal terms and tax affected payment rates are available.
- Taxes, up fits, and the cost of accessory installation can be included in the capitalized cost of the lease.
- Services and conveniences other finance products simply do not offer.
Why You Should Consider a NMAC TRAC Lease
- All Nissan vehicles qualify.
- NMAC's lease terms are a clear advantage for credit-qualified borrowers.
- Favorable accounting treatments provide cash-flow benefits.
- Customer and dealer set the residual value with NMAC's approval.
- A one-stop shopping experience when ordering and arranging financing for vehicles.
Tax Advantages for Your Business
TRAC Leases are commonly considered off-balance sheet financing. This style of lease is generally treated as a 100% tax-deductible operating expense, not a capital expense. Consult your tax advisor for more information.