Financing
Products
Tailored to meet the needs of your operation - Our primary financial suppliers offer products and features which include the following:
- Retail Loans
- TRAC Leases
- Modified TRAC Leases
- Municipal Leases
- Fair Market Value
- Physical Damage Insurance n Body Upfitter Programs
- Preventive Maintenance Financing
- Fixed Rate/Simple Interest
- Floating/Variable Rates
- Balloon Payment
- Seasonal Skip
Lease
Finance Leases
For many, leasing has become an attractive financing alternative. Under current tax laws, our Finance supplier will create lease plans which can pass tax benefits on to you. Plus, depending on the type of lease you choose , you'll have the right to buy, sell or turn back your equipment at lease end.
Features
- Fixed or variable rate
- 100% advance (based on credit approval)
- Lower payments
- Tax deduction Benefits
- Minimize initial cash investment
- Free up working capital
- Preserve borrowing capacity
- Improve cash flow
TRAC Leases , Fair Market Value Leases , Variable Rate Leases
TRAC and Modified TRAC (Terminal Rental Adjustment Clause):
Pay a set monthly payment, then upon lease end, return or purchase it for its TRAC value. If the vehicle exceeds the preset residual value, Finance Company returns 100% of the excess proceeds. If the value is less, you're responsible for the difference. A Modified TRAC lease limits your liability for any residual short-fall and you may be able to obtain "off-balance sheet" treatment.
Fair Market Value:
Fair Market Value or "walk-away" leases feature a fixed monthly payment and tax advantages can apply. At the end of the lease, purchase the vehicle for its current fair market value, or simply return the truck (return is subject to certain return conditions and mileage restrictions).
Variable Rate Lease (structured as a TRAC or FMV lease):
A Variable Rate lease is less sensitive to interest rate fluctuations than a comparable loan product, thanks in part to accelerated tax benefits. It typically offers a significantly lower initial payment than a comparable fixed-rate lease and payments are adjusted every six months to reflect the market. Customers can "lock in" an interest rate at any time, converting the lease to a fixed-payment finance program.
Loans
Types of Loans Available:
- Fixed Rate/Simple Interest Plans: Like a mortgage on your home, our fixed-payment simple-interest loan features a locked interest rate on your loan balance. With PACCAR Financial for example, you only pay interest on the balance for the actual days outstanding. That's a big advantage over loan terms that require set interest fees regardless of the balance outstanding, or when payments are received.
- Variable/Floating Rate: If you prefer a loan with a floating rate, our variable-rate loan program is for you. By choosing a loan indexed to LIBOR or commercial paper, you can significantly enhance your cash flow. Your monthly loan payment is held constant for the duration of the loan, meaning you pay off the loan faster if rates go down or if you pay early. If interest rates go up, or if payments are made after their due date, a balloon payment may be required at maturity.
You can apply to Paccar Financial online by clicking on this link.