Definitions for "Trac Lease"
Keywords:  trailers, rental, lessee, clause, motor
a special lease structure for operators of trucks and busses
a Tax Lease on vehicles for commercial use in which you have the option of buying the leased vehicles at a predetermined price when the lease term expires
Used to describe certain leases restricted to the motor vehicle leasing industry; a lease that has what is called a "Terminal Rental Adjustment Clause," meaning that ownership passes to the lessee with the payment of the TRAC, which usually equates to the buyer's assumed residual value. Despite the final and mandatory purchases, TRAC leases are specifically regarded as true leases for tax purposes (i.e., tax benefits are accorded to the lessor).