MANAGING 10-50 COMPANY VEHICLES
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Fleet FAQ

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Fleet FAQ? Fleet Management & Leasing

Q. What is a TRAC, and why is it important?

A. The Terminal Rental Adjustment Clause (TRAC) is a critical factor in an open-end lease. A TRAC adjustment allows for a rental adjustment against the vehicle’s outstanding book value at the end of the lease. With an open-end lease with a TRAC clause, businesses have the advantage of retaining the option to terminate the lease after a minimum period, have the fleet management company (FMC) sell the vehicle, and then have the FMC either credit or bill them for the difference between what the vehicle is sold for and how much they owe.

Expert Bio

Answered by : Tom Coffey

Vice President

With over 30 years of experience Tom is an expert in both the fleet and equipment leasing industry. As a member of senior leadership he provides not only vision for the company, but also helps delivers best-in-class results across all operating areas. Tom is also instrumental in helping to elevate and advance the Merchant Fleet Management brand.

With over 30 years of experience Tom is an expert in both the fleet and equipment leasing industry. As a member of senior leadership he provides not only vision for the company, but also helps delivers best-in-class results across all operating areas. Tom is also instrumental in helping to elevate and advance the Merchant Fleet Management brand.

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Fleet FAQ? Fleet Management & Leasing, Questions?

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Q. Which is more optimal: short lifecycles or longer lifecycles?

A. Ultimately there is no one “right” answer when it comes to managing vehicle lifecycles. Determining which lifecycle strategy makes sense for your fleet involves understanding and even anticipating the types of maintenance that will be required at different stages of the vehicle’s life. For example...

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