Your business must be under current ownership for at least 2 years. You’ll need:
- Guarantees of key owners
- Dealer invoice with purchase price
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.
|information about TRAC lease and lease purchase features.||TRAC lease||Lease purchase|
|Use it for||A commercial-use vehicle||A commercial-use vehicle|
|Payments||Lower monthly payments due to predetermined residual value||Higher monthly payments due to no residual value|
|At end of lease||You 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.|
|Term||6 years—with no mileage charges or
|Loan-to-value||Up 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 row||Get started Send us an email to begin your financing||Get started Send us an email to begin your financing|
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%).
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.
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 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.
A leasing arrangement that allows you to assume ownership of the equipment or vehicle at the end of the term for $1.
A line of credit that works together with one of our leases means you get all the advantages of leasing—plus you can get the equipment you need anytime during your revolving credit term.Learn more about an equipment line of credit