How the real interest rate is worked out
Total to own = down payment + weekly payment × weeks + buyout Extra you pay = total to own − truck's cash price Real APR = the yearly rate r that makes cash price = down + Σ payment ÷ (1+r/52)^k + buyout ÷ (1+r/52)^n
That is the same internal-rate-of-return math lenders use to state an APR. It lets you put a weekly lease next to a monthly bank loan and compare them fairly, even when the terms and down payments differ.
Lease-purchase vs. TRAC lease vs. bank loan
| Carrier lease-purchase | TRAC lease | Bank or dealer loan | |
|---|---|---|---|
| Money down | Little or none | Some | Usually 10–20% |
| Who you haul for | Often tied to the carrier | Your choice | Your choice |
| Payment | Weekly, taken from settlement | Monthly | Monthly |
| End of term | Buyout to own | Pay the set residual or return | You own it |
| If you leave early | Payments made may be lost | Per contract | Sell or refinance |
| Credit needed | Low | Medium | Higher |
Red flags to check before you sign
- You pay for all repairs, but the carrier decides which shop does them.
- Maintenance escrow is not refundable, or refunds are at the carrier's discretion.
- Leaving the carrier ends the lease and you lose everything you have paid.
- The carrier sets your rate per mile or forces dispatch, so you can't chase better freight.
- A large buyout or balloon is due at the end that you weren't told about up front.
Estimates only, not financial advice. Get the full contract and a written loan quote before you decide. See also average semi truck payments and loan rates.
Common questions
What is a lease-purchase in trucking?
A lease-purchase lets you drive a truck for a weekly payment, usually taken out of your settlement by a carrier or leasing company, with the option to own it after a final buyout. It needs little money down, but you usually carry the repair costs and give up some control over the freight you haul.
How do I work out the interest rate on a lease-purchase?
Compare everything you pay to own the truck (down payment, every weekly payment and the final buyout) with what the same truck sells for in cash today. This calculator finds the interest rate that links the two, the same way a bank states an APR on a loan.
Is a lease-purchase a good idea?
It can be a way in if you can't qualify for financing yet, but it is often the most expensive way to get a truck. Check the real APR, who pays for repairs, whether escrow is refunded and what happens if you walk away early, then get a bank or dealer quote to compare.
What is the difference between a lease-purchase and a TRAC lease?
A TRAC lease is a commercial lease from a leasing or finance company with a set residual value you can pay to keep the truck. A carrier lease-purchase is usually tied to driving for that carrier, with payments taken from your weekly settlement.
What should I check in a lease-purchase contract?
Who pays for repairs and tires, whether maintenance escrow is refunded, what happens to your payments if you leave the carrier, any balloon or buyout at the end, and whether the carrier controls your loads or rate per mile.