Our affiliate company, Cornerstone Bus Leasing and Rentals, offers customized financing solutions for a multitude of purposes. Contact Cornerstone today at 844-4YOURBUS to learn how they can assist in your financing solutions.
Davey Coach offers many traditional leasing and financing solutions for your new or used vehicle. Whether you are looking for an operating lease, a lease-to-own option, or traditional loan financing, we can set you up with information regarding possible leasing/financing structures and payments along with your bus pricing to help with your purchasing decision.
Ask your Davey Coach sales representative about our traditional bus leasing and financing information, or click below for some general information about various lease and finance structures that we offer:
Operating or Closed End Lease
An operating lease is a lease agreement in which the lessor owns the equipment and leases it to the lessee for a term, in most traditional applications, generally 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.
Traditional Loan Financing
Traditional loan financing is a structure by which an equipment purchase is financed on a fixed rate basis. The lessee retains the tax ownership of the equipment and related depreciation and is the owner of the equipment once the account is paid in full.
TRAC Lease or Open End Lease
This type of lease contains a Terminal Rental Adjustment Clause (TRAC) that states that at the end of the lease term, the equipment will be sold, either to the lessee or to a third party, for its Fair Market Value.
Pursuant to the Terminal Rental Adjustment Clause, if the NET proceeds received by the lessor, upon sale of the equipment, were in excess of the Terminal Rental Adjustment Clause amount (also referred to as the residual) established in the lease, such excess proceeds would be paid to the lessee. Conversely, if the vehicle is sold for less than the established TRAC amount, the lessee is required to reimburse the lessor for the short fall. This lease structure is common for business owners who desire the option to purchase the vehicle for a pre-determined price at the end of the lease.