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Business Financing

Vehicle Financing

Leasing a vehicle: Is it right for you?

Leasing a commercial vehicle may be a good option for your business when you have limited capital or your vehicle might require upgrading every few years.

  • Finance up to 100% of the purchase price
  • Finance $50,000 and up—and get a possible reduction of your taxable incomeFootnote1
  • Get a competitive fixed rate and have funds disbursed directly to the vehicle dealer
information about TRAC lease and lease purchase features.TRAC leaseLease purchase
Use it forA commercial-use vehicleA commercial-use vehicle
PaymentsLower monthly payments due to predetermined residual valueHigher monthly payments due to no residual value
At end of leaseYou can purchase the vehicle for a
guaranteed amount or return the vehicle to be sold by Bank of America.
You own the equipment for $1.
Term6 years—with no mileage charges or
restrictions
7 years
Fees
  • Origination fee of 1.0% of amount being financed
  • $250 documentation fee (waived with automatic payments)
  • No annual fee or additional closing costs
  • Origination fee of 1.0% of amount being financed
  • $250 documentation fee (waived with automatic payments)
  • No annual fee or additional closing costs
Loan-to-valueUp to 100% (plus up to 20% for soft costs such as taxes, freight and delivery)Up to 100% (plus up to 20% for soft costs such as taxes, freight and delivery)
CTA button rowGet started Send us an email to begin your financingGet started Send us an email to begin your financing

Loan-to-value ratio

The ratio between the unpaid principal amount of a loan, or credit limit in the case of a line of credit, and the appraised value of the collateral. Expressed as a percentage. For example, if you have an $80,000 first mortgage on a home with an appraised value of $100,000, the LTV is 80% ($80,000 / $100,000 = 80%).

TRAC lease

A TRAC (Terminal Rental Adjustment Clause) lease is designed specifically for financing heavy-duty vehicles such as trucks, tractors and trailers. The lease allows you to buy the vehicle at the end of the lease term for a predetermined value, commonly known as the TRAC amount. If you choose not to buy the vehicle, we will sell it. If the sale price is more than the TRAC amount, we pay you the difference; if the sale price is less than the TRAC amount, you pay us the difference.

Residual value

The residual value of an item (such as a vehicle) is the amount you will pay to purchase that item at the end of the lease and is based on estimated fair-market value. Lower monthly payments usually mean a higher residual value, so think about how much you can afford each month and your plans for the item at the end of the lease term.

Soft costs

Soft costs are costs associated with the purchase of an item that are not part of the item price. For example, taxes, freight charges and delivery fees are soft costs.

Lease purchase

A leasing arrangement that allows you to assume ownership of the equipment or vehicle at the end of the term for $1.