TRAC Leasing for Fleets

A TRAC lease—a type of open end lease—offers flexibility and control for organizations that operate vehicles beyond standard mileage or term assumptions. EMKAY’s TRAC leasing solutions are designed for fleets that want transparency, adaptability, and stronger alignment between vehicle usage and financial outcomes.

For long-term and high-mileage fleets, TRAC leasing provides a strategic alternative to traditional fixed-term leasing structures.

What is a TRAC Lease?

A TRAC (Terminal Rental Adjustment Clause) lease is a form of open end leasing commonly used in commercial fleet leasing. Unlike closed-end leases, TRAC leases allow residual values to adjust based on actual vehicle performance at the end of the term.

This structure makes TRAC leasing especially effective for fleets with large or variable fleets, higher mileage vehicles, and evolving operational needs.

Best For

Higher Mileage Vehicles
No mileage caps or per-mile overages — ideal for fleets that drive far.
Larger Fleet Operations
Scale up or down without being locked into fixed-term structures.
Evolving Operational Needs
Adjust vehicle mix, swap assets, and re-optimize as your business changes.
Strategic Fleet Alignment
Vehicle usage and financial outcomes stay aligned.

How Residuals Work in a TRAC Lease

Residual value is the projected worth of the vehicle at lease end. In TRAC, that projection is shared and settled against real market outcomes.

Scenario A
Vehicle sells above projected
Market conditions favor your asset — the surplus flows back to your organization.
You keep the upside
Scenario B
Vehicle sells at projected
Ideal outcome — residual estimate was accurate, no adjustment needed.
Zero settlement
Scenario C
Vehicle sells below projected
You cover the shortfall — EMKAY's planning minimizes this exposure from day one.
Settlement due

TRAC vs Closed-End Leasing

Understanding the difference between lease structures is critical to choosing the right strategy for your fleet.

	TRAC Lease Talk to a Specialist →	Closed-End Lease Explore Closed-End Leasing
Features
Best for	High-mileage, variable fleets with long-term use Flexible for evolving operations	Low-mileage vehicles on fixed, predictable terms
Mileage	No caps or per-mile overage fees Drive as much as you need	Set mileage limit — overage fees beyond cap
Monthly cost	Typically lower — residual risk not priced in More efficient payments	Typically higher — risk premium included
Residual risk	Shared — upside returns to you, you cover any shortfall	Retained by lessor and baked into the payment
End of term	Vehicle sold; proceeds settle the balance No surprise wear charges	Return vehicle — excess wear & tear charges may apply

TRAC Lease
Talk to a Specialist →
Features
Best for
High-mileage, variable fleets with long-term use
Flexible for evolving operations
Mileage
No caps or per-mile overage fees
Drive as much as you need
Monthly cost
Typically lower — residual risk not priced in
More efficient payments
Residual risk
Shared — upside returns to you, you cover any shortfall
End of term
Vehicle sold; proceeds settle the balance
No surprise wear charges
Closed-End Lease
Explore Closed-End Leasing
Features
Best for
Low-mileage vehicles on fixed, predictable terms
Mileage
Set mileage limit — overage fees beyond cap
Monthly cost
Typically higher — risk premium included
Residual risk
Retained by lessor and baked into the payment
End of term
Return vehicle — excess wear & tear charges may apply

Talk to a Specialist →

Explore Closed-End Leasing

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