LEASING
AS AN ADDED CONVENIENCE, CUSTOMERS MAY INCLUDE THE FOLLOWING WITHIN THEIR LEASE PAYMENT:
- Truck bodies and vehicle modifications
- Federal excise tax / sales tax
- Vehicle titling fees
- Service solutions
- Extended service contracts
A finance lease is intended for customers reasonably certain to purchase the commercial vehicle at lease end, for a predetermined amount (typically $1 or another nominal amount). Lease payments are fixed over the term and generally larger than other lease products.
FINANCE LEASE BENEFITS
- Compatible with specialized assets
- No mileage restrictions
- The customer owns the vehicle at the end of the lease
Terminal Rental Adjustment Clause (TRAC) leases and Split TRAC leases typically offer lower monthly payments than purchasing but unlike an FMV lease, residual values are predetermined.
If the customer decides not to purchase the vehicle, Navistar Financial can sell the vehicle. The customer will pay selling expenses. The customer will receive any surplus greater than the residual value.
- For a TRAC lease, if the value at lease-end is less than the residual, the customer must pay the full difference.
- For a Split TRAC lease, if the value at lease-end is less than the residual, the customer will pay only up to the specified, maximum liability
For either TRAC lease, the customer can refinance the residual at prevailing used truck finance rates or re-lease the vehicle for a reasonable term, subject to credit approval.
TRAC LEASE AND SPLIT TRAC BENEFITS
- Lower payments
- Predetermined residuals
- Options to purchase, refinance the residual, or re-lease the vehicle*
* At prevailing used truck finance rates. Subject to credit approval.
A Fair Market Value (FMV) lease offers fixed monthly payments with no vehicle disposal requirements. Customers can either purchase the vehicle at fair market value or simply return it (after meeting all obligations of the contract, including mileage and return conditions).
FMV BENEFITS:
- Option but no obligation to purchase the vehicle
- A fixed monthly payment with no vehicle disposal concerns
- Lower monthly payments than other financing options
- No end-of-term residual obligations
1Program eligibility, actual payments, terms and down payment are determined by Navistar Financial Corporation’s credit team based upon creditworthiness of customer.
2Navistar Financial Corporation does not provide or endorse any tax or accounting advice or tax strategy to its dealers, customers or potential customers. You should consult with your own tax and accounting advisor on all such matters relating to the loan or lease financings described in this brochure.
3TRAC leases are limited to motor vehicles leased to businesses and must be used for commercial purposes at least 50% of the time.
4FMV Leases are not available on all vehicles.
