Bergey’s Truck Centers Acquires Cumberland Truck
Bergey’s Truck Centers Acquires Cumberland Truck
Menu
The following details provide insight regarding the benefits of a TRAC lease, including cash flow savings of over $63,000 versus traditional financing during the term of the lease.
| TRAC Lease* | Traditional Financing* | |
| Money Down | $0 | $0 |
| First Payment | 30 days in arrears | due at signing |
| Monthly Payment | $2,483.79 | $3,540.77 |
| End of 60 Months | ↓ $73,000 residual | 100% Ownership |
| TRAC Lease End of 60 Months $73,000 residual options: Trade, Refinance or Sell (today’s market value est. at $90k**) | ||
| Cash Flow | Reduce monthly payments by over $1,000 per month, totaling over $63,000 for the term of the lease. | |
| Taxes | TRAC leases are considered an operating lease, thus the monthly payment is potentially 100% tax deductable. | |
| Equity | If the market value of the truck exceeds the residual loan balance, the remaining value results in asset equity. In the example above, the estimated value after 60 months is $90,000, resulting in $17,000 in equity. |
|
| Flexibility | At the end of the lease term, you have the option to sell, trade, or refinance the balance and keep the truck. Deferred payment plans available to eliminate payments according to your business seasonality. No mileage limitations. |
|
| Interest Rates | TRAC loans typically qualify for lower interest rates than traditional financing. | |
BUZZNERD TRUCKS