CARB offers its own version of rent-to-own

By Charlie Morasch, Land Line staff writer | Monday, March 19, 2012

The California Air Resources Board has introduced a lease-to-own financing opportunity. The program is aimed at helping companies achieve early compliance with CARB’s on-road diesel rule, also known as the truck and bus regulation.

To be eligible, companies must have 100 or fewer employees and $10 million or less in annual revenue and must generate their primary income in California (most vehicle miles must occur in California).

Called the Terminal Rental Adjustment Clause Leases, or TRAC leases, the program is administered through a partnership between CARB and the California State Treasurer’s Office.

The program combines tax advantages of leasing while “retaining the option to purchase the leased equipment at the end of the term for a predetermined price,” CARB said in a news release. “Monthly payments are determined by the balance owed on the equipment at the start of the lease.”

The TRAC program was made possible after California passed Senate Bill 225 last year.

“This is a program that benefits small fleets and owner-operators,” CARB Chairman Mary Nichols said, according to a news release. “It provides them with an additional way to pay for a cleaner truck, even if their credit isn’t stellar.”

For more information, call 1-866-6DIESEL or email 8666DIESEL@arb.ca.gov.

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