Explore solutions for your business by reviewing the lease/financing options below. Click any link in the top row to learn more.

 

Installment
Sale Contract

Finance Lease
or Flex Lease

Tax Lease—Cat®
Value Option or
Window Lease

Tax Lease—
Long-Term Rental

TRAC Lease

Ownership

Immediate Option to return Option to return or purchase at lease-end; Flex Lease provides the option to return early at the predetermined date  Option to return or purchase at lease-end; Window Lease provides the option to purchase early at the predetermined date Option to return or purchase at lease-end Option to purchase at lease-end

Equity 
Buildup

Faster Slower None None None

Tax 
Depreciation

Customer Customer Cat Financial Cat Financial Cat Financial

Payment

Higher Lower Lowest Lowest Lowest

Purchase
Option

N/A Bargain Predetermined Fair
Market Value
 Fair Market Value Predetermined Fair 
Market Value

Contract
Flexibility

 Yes  Yes  Less  Less  Less

Early Payoff 
Restrictions

 No  No  Some  Some  Some

Personal 
Property Tax

Customer pays 
(varies by state)
Customer pays
(varies by state)
Cat Financial pays,
then invoices customer 
Cat Financial pays,
then invoices customer
Cat Financial pays,
then invoices customer

Additional 
Information

  • Customer owns and depreciates 
  • Immediate equity through down payment or trade-in 
  • Quickest equity buildup through repayment
  • Customer has ownership
  • Bargain purchase option reduces payment
  • Customer may take depreciation
  • Equity buildup is slower
  • Characteristics of an ISC with the lower payments of a lease
  • Use or possible optional ownership
  • Customer treats unit as rental
  • No equity buildup
  • Use or possible optional ownership at Fair Market Value at lease-end
  • Customer treats unit as rental
  • No equity buildup
  • For over-the-road motor vehicles and trailers only
  • All U.S. taxpayers using “on-highway”  trucks, tractors and  trailers qualify
  • Lease payments are fully deductible for tax purposes
  • Improves cash flow
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