TRAC Vehicle Leasing

Terminal Rental Adjustment Clause (TRAC) vehicle leasing is the most popular way to lease fleets of trucks and cars in America. This article describes the origins of TRAC vehicle leasing, the challenges that emerged in the 1980s to characterizing TRAC vehicle leases as "true leases," and the earlier split case law on that issue. Today TRAC/state laws have been enacted in all 50 States (and the District of Columbia) confirming the true lease character of TRAC vehicle leases. The courts now consistently agree with that conclusion The statutory citations for all the TRAC/state laws are set out