Wells Fargo Equipment Finance will provide an equipment leasing program for select U.S.-based Autocar dealerships, says Parker Hannifin Corp.'s Hybrid Drives Systems Division.
"Our goal for this leasing program is to provide creative financing solutions for Autocar dealerships to help sell products," says Jeff Sorem, program manager at Wells Fargo Equipment Finance. "Financing is a big piece of the customer's acquisition in today's market. Not too many companies or municipalities are paying cash for vehicles of this size. Financing and financing options are generally part of the sales process, so we work with the vendors to establish programs and offer attractive financial options for their customers to purchase equipment."
Leasing allows commercial groups to preserve capital. Additionally, in many lease structures the leasing company is the owner of the equipment, so it remains on their balance sheet, which can be an advantage for the customer. In some structures, through lower rental payments, Wells Fargo may be able to pass on depreciation benefits that customers wouldn't otherwise receive.
Wells Fargo also offers a TRAC lease product, which may be structured with a 60-month term and an end of term TRAC amount based on 20% of the original vehicle cost. Under that structure, at the end of the lease term the customer's maximum payment would be limited to 20% of the vehicle's original cost and the customer would be paid a rent adjustment equal to the amount by which the vehicle's value at that time exceeds 20% of its original cost. Other multi-year terms may be available.