Star Trailer Finance Co. is a division of Star Leasing Co. that offers a broad selection of leasing and equipment financing products to meet your specific needs. The majority of these products are listed below. We can also customize products to help design a solution tailored to fit your exact needs.
TRAC (Terminal Rental Adjustment Clause) leases are available only for titled motor vehicles used at least 50% for commercial purposes. Under the conditions of this lease, your company and the lessor agree on a predetermined value for the vehicles upon the features of a true lease, but will allow a fixed residual amount upon completion of the lease term. At this time, you may either purchase the equipment at the predetermined price or return the vehicles and either retain the excess amount or pay the amount of the shortfall for the pre-determined price.
Modified TRAC Leases
TRAC Leases in which your exposure for the predetermined value is limited, and the balance of the risk is allocated to Star Leasing. These leases may be structured as Operating Leases under FASB 13.
Tax leases that allow you to purchase equipment, upon lease expiration, for the fair market value, which cannot exceed a predetermined percentage of the original cost.
Equipment loans are note and security agreements through which equipment purchase is financed by Star TFC on a fixed rate basis.
Lease Purchase/Finance — Capital Lease
A lease in which equipment can be purchased for a predetermined price upon lease expiration. These leases can be structured with either purchase options or purchase agreements. Depreciation benefits are typically transferred to the lessee.
Operating Lease through Star Leasing Company
A lease in which the Lessor owns the equipment and leases it to the Lessee for a term usually between 36 and 84 months. An Operating Lease may provide the Lessee with off-balance sheet financing if the lease meets certain accounting criteria. At the end of the initial term, the Lessee may return the equipment to the Lessor or re-lease the equipment for another specified term.