When the Lease Ends on Your Ford Commercial Vehicle Turn to the Experts at South Bay Ford
Many commercial truck owners who opt for leasing over financing prefer an open-ended TRAC lease, which is also known as an operating lease. TRAC, which stands for Terminal Rental Adjustment Clause, is a certification that tells the Internal Revenue Service that the lease conforms to its tax codes and isn’t considered a daily rental agreement.
As you approach the end of a lease, at about 90 days from the end, that is the time to get your lease contract out and look it over. It’s important to have the opportunity to evaluate your options. When you come to the end of the lease period for your commercial vehicle you are faced with five possible lease-end options with South Bay Ford, some which may suit your situation while others might not:
1. Obtain a payoff quote and assistance with the buyout process
In the case the company that financed the lease will provide you with the cost to you for the outright purchase of the vehicle. If the vehicle has been reliable and is in good condition, you may choose this option. You will then own the vehicle and will be an asset of your company.
2. Discuss the option to extend the term of your Commercial Lease agreement
Depending upon the terms of your lease, you may be able to negotiate an extension for a select period of time. This is a good option is your business is growing but you’re just not ready for that larger truck. It also depends on whether the truck you’ve leased continues to meet your needs. If not there’s little point in extending the lease.
3. Discuss the option of Ford Credit selling the vehicle for you
Ford Credit has access to every Ford commercial truck dealers in the United States. They are well-equipped to tap into that network to sell your truck; if that’s the decision you’ve reached at lease end. This is an excellent option if you owe charges for excess mileage or wear and tear, as you stand a chance of recouping those costs through a sale of your truck.
4. Purchase or lease a new Ford vehicle and facilitate the trade-in of your current vehicle
If your lease has ended you have the opportunity to lease or purchase another Ford commercial vehicle. In certain circumstances it may be possible to add any unexpected lease-end charges to the purchase or lease of a new Ford commercial vehicle.
5. Assist with terminating your vehicle
You will need to schedule a vehicle-return appointment with your originating dealer should you choose to terminate your lease prior to the end of the agreement. Please be aware that there may be some charges associated with an early lease termination.
No matter what kind of lease you have you should want to know where you stand before ending your lease. And should you have any questions, the staff at South Bay Ford is here to help.