Traditional loan
You own it from day one and build equity with every payment. Best when you'll run the vehicle well past the loan term — which describes most churches and senior living communities. Terms out to 84 months.
TRAC lease (Terminal Rental Adjustment Clause)
Lower monthly payments with a residual value set at signing — you know the exact end-of-term number from day one. At the end: pay the residual and keep it, or turn it in and settle the difference. Popular with commercial operators who want payment flexibility with a known number. TRAC applies to commercial-use vehicles, which is why you see it in fleet quotes and not car dealerships.
Walk-away (FMV) lease
Use it for the term, return it and walk away, or buy at market value. The right structure for fleets that rotate vehicles on a schedule and never want to own an aging bus.
Dollar buyout lease
Lease-structured payments; the vehicle is yours for $1 at the end. Economically it's a loan wearing a lease's clothes — organizations choose it for how it's treated on their financial statements. If the board wants "lease" and the organization wants ownership, this is the answer.
Non-profit, church, and municipal structures
Board-resolution leases, grant-funded purchases, municipal programs — the paperwork differs (501(c)(3) letter or municipal authorization instead of tax returns) but the structures above still apply.
Keeping it 10 years → loan or dollar buyout. Rotating fleet every 4–5 years → FMV or TRAC. Board wants the lowest payment → TRAC. Board wants lease treatment but ownership → dollar buyout.
Every path starts the same way: pre-qualify (takes about a day), then compare real numbers side by side. We work with multiple lenders and will show you the same vehicle under each structure.
Not tax or accounting advice — how a lease is treated on your books is a conversation for your accountant, and we're glad to join that call.