Open-end vs. Closed-end Leasing for Truck Fleets

Open-end vs. Closed-end Leasing for Truck Fleets

At Union Leasing, we offer a wide variety of flexible leasing options. We work hard to help sort through what’s most important for your unique situation, so there really are no one-size-fits-all answers. The first decision to make is whether you’d prefer an open or closed-end lease.

Open-end or “Trac” Lease

Our signature financing product is ideal for corporate fleets. It offers tremendous flexibility and all the advantages of ownership with the flexibility and cash-flow benefits of an operating lease.


  • Lower monthly fees, freeing up capital for other expenses
  • Greater flexibility if needs change
  • No surprises on the back end. You are responsible for principal balance instead of market value.
  • Ability to take advantage of positive reseller market situations


  • Lessee assumes more risk for depreciation

Depreciation Management
Our open-end lease can be structured as a level or step payment, which allows for lower depreciation toward the end of the lease when residual risk is minimized. The step payment method can utilize either a monthly or yearly depreciation schedule.

Rate Options
In order to deliver the best leasing service option for our clients, Union Leasing provides both floating and fixed rate options for open-end leases. 

Our fixed rates are established at the inception of the lease based on the Prime Rate, and remain fixed throughout the term.

We use both Libor and Prime indexes to establish the rate on an ongoing basis. The interest portion of your rate is adjusted to reflect any change in the base rate. Libor is adjusted monthly, while Prime is adjusted the next billing cycle after ever change to the Prime Rate.

Closed-end Lease

This option offers a fixed monthly payment guaranteed for the agreed upon lease term.


  • Lease payment is fixed, which allows for precise vehicle budgeting
  • Walk-away convenience—simply return the vehicle within the terms of the agreement regarding mileage and wear-and-tear


  • Higher monthly fees than open-ended lease
  • Limited flexibility in terminating prior to the lease’s defined term

Get in touch with our experts for help structuring a lease that will best accommodate your financial goals.