LEASING

THE BENEFITS OF LEASING

Leasing commercial trucks and buses offers a variety of benefits¹, ranging from lower upfront costs and monthly payments for newer equipment to providing flexibility for customers not interested in owning equipment or having to sell or trade equipment. Additionally, lease payments are typically fully deductible as an operating expense.² Different lease types are available for whatever fleet vehicles you may need, all with fixed monthly payments throughout the lease period.

SUPPLEMENTAL
LEASING OPTIONS

Truck bodies and vehicle modifications
Federal excise tax / sales tax
Vehicle titling fees
Service solutions
Extended service contracts

FINANCE LEASE

A finance lease is intended for customers reasonably certain to purchase the commercial vehicle at lease end, for a predetermined amount (typically $1 or another nominal amount). Lease payments are fixed over the term and generally larger than other lease products.

Benefits

Compatible with specialized assets
No mileage restrictions
The customer owns the vehicle at the end of the lease

TRAC AND SPLIT
TRAC LEASE³

Terminal Rental Adjustment Clause (TRAC) leases and Split TRAC leases typically offer lower monthly payments than purchasing but unlike a Fair Market Value (FMV) lease,⁴ residual values are predetermined.

If the customer decides not to purchase the vehicle, International® Financial⁵ can sell the vehicle. The customer will pay selling expenses. The customer will receive any surplus greater than the residual value.

For a TRAC lease, if the value at lease-end is less than the residual, the customer must pay the full difference.
For a Split TRAC lease, if the value at lease-end is less than the residual, the customer will pay only up to the specified, maximum liability
For either TRAC lease, the customer can refinance the residual at prevailing used truck finance rates or re-lease the vehicle for a reasonable term, subject to credit approval.

Benefits

Lower payments
Predetermined residuals
Options to purchase, refinance the residual, or re-lease the vehicle⁶

FAIR MARKET
VALUE LEASE

A fair market value (FMV) lease offers fixed monthly payments with no vehicle disposal requirements. Customers can either purchase the vehicle at fair market value or simply return it (after meeting all obligations of the contract, including mileage and return conditions).

Benefits

Option but no obligation to purchase the vehicle
A fixed monthly payment with no vehicle disposal concerns
Lower monthly payments than other financing options
No end-of-term residual obligations

1. Program eligibility, actual payments, terms and down payment are determined by Navistar Financial Corporation’s credit team based upon creditworthiness of customer.

2. Navistar Financial Corporation does not provide or endorse any tax or accounting advice or tax strategy to its dealers, customers or potential customers. You should consult with your own tax and accounting advisor on all such matters relating to the loan or lease financings described in this brochure.

3. TRAC leases are limited to motor vehicles leased to businesses and must be used for commercial purposes at least 50% of the time.

4. FMV Leases are not available on all vehicles.

5. International Financial products and services are provided by Navistar Financial Corporation NMLS#1561857 and Navistar Leasing Company NMLS#2486424.

6. At prevailing used truck finance rates. Subject to credit approval.

RESOURCES

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IN THE DRIVER'S SEAT

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LEASING

RESOURCES

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FINANCING

COMMERCIAL VEHICLE LOANS

USED VEHICLE FINANCING SOLUTIONS

MUNICIPAL FINANCING

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