Which Financing Structure Fits?

Loan, EFA, $1 buyout, FMV, TRAC — compared side by side, with live payment estimates. Pick the one that matches how you use the equipment.

Equipment Loan
Own it, bank-style
$3,168.64
/month · 60 mo est.*
EFA
The industry workhorse
$3,168.64
/month · 60 mo est.*
$1 Buyout Lease
Lease that ends in ownership
$3,168.64
/month · 60 mo est.*
FMV Lease
Lowest monthly payment
$2,876.15
/month · 60 mo est.*
Lowest payment
TRAC Lease
Built for trucks & trailers
$2,778.66
/month · 60 mo est.*
Best for
Established businesses that want straight ownership
Most equipment purchases — fast, no bank covenants
Buyers who want ownership with lease simplicity
Tech & fast-obsoleting equipment; payment-sensitive buyers
Over-the-road tractors, trucks, and trailers
Do you own it?
Yes — day one
Yes — day one
At the end — for $1
Optional at the end
Path to ownership
At the end of the term
Loan paid off. It's yours, free and clear.
Fully paid. It's yours, free and clear.
Pay $1. Equipment is yours.
Return it, renew, or buy at fair market value.
Buy at the pre-set residual, or it's sold and the difference settles.
End-of-term cost
No buyout — you already own it
No buyout — you already own it
$1 buyout at term end
~15% est. end-of-term value
~20% pre-agreed residual
Total of payments
$190,118
$190,118
$190,118
$172,569
$166,720
Est. total cost to own
$190,118
$190,118
$190,118
$195,069 (incl. buyout)
$196,720 (incl. buyout)
Tax treatment
Deduct interest + depreciation
Deduct interest + depreciation
Treated like a purchase — depreciation
Payments typically fully deductible
Payments typically deductible
Section 179 expensing
✓ Eligible
✓ Eligible
✓ Eligible
— Not typical
— Not typical
Balance sheet
Asset + loan on your books
Asset + obligation on your books
Capitalized (finance lease)
Operating lease treatment*
Operating lease treatment*
Ideal equipment
Long-life equipment you'll keep
Titled & heavy equipment, most deals
Equipment you'll definitely keep
IT, medical, anything you'll upgrade
Class 8 tractors, trailers, fleets

*Estimated payments for illustration only using indicative rates (9.75% for the selected profile) — not an offer or commitment to lend; subject to credit approval. FMV/TRAC totals assume estimated end-of-term values that vary by equipment. *Lease accounting treatment depends on ASC 842 analysis — confirm with your accountant.

How to choose in 30 seconds

Want to own it and keep it forever? An EFA or equipment loan puts the asset on your books from day one — and with Section 179 you can often deduct up to the full purchase price this tax year.

Want ownership with lease-style paperwork? The $1 buyout lease is economically a loan wearing a lease jacket: fixed payments, then the equipment is yours for a dollar.

Want the lowest payment or fast-obsoleting equipment? An FMV lease keeps payments down because you're not paying for the equipment's end-of-term value — and you can walk away, renew, or buy when the term ends.

Financing trucks or trailers? The TRAC lease was built for over-the-road vehicles: a pre-agreed residual lowers the payment while keeping an ownership path open.

Tax treatment varies by situation — always confirm with your tax advisor. Elevex Capital does not provide tax or legal advice.

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