Lenders offer FMV and TRAC leases to keep trucks affordable

OEMs, lenders and service providers are preparing to pivot quickly to reach long-term goals as tariffs and economic uncertainty loom over the commercial trucking industry. 

President Donald Trump’s tariffs have raised concerns among truck dealers and lenders, with price increases potentially suppressing demand and disrupting supply chains. A universal tariff of at least 10% imposed by Trump today has further fueled uncertainty. 

While it’s unclear how Trump’s policies will affect the commercial vehicle sector, lenders must keep their “eye on the long ball” to put themselves in the best position to serve their customers, Kirk Mann, executive vice president and head of transportation at Mitsubishi HC Capital America said today during the virtual Commercial Vehicle Business Summit, hosted by dealer solutions provider Work Truck Solutions.  

“At the end of the day, we’ve got an end user that is squeezed in every direction.”

— Kirk Mann, Mitsubishi HC Capital America

“The truck costs more, interest rates have been higher. … So we’re trying to find ways to at least mitigate that squeeze a little bit. We’re falling back a lot on [fair market value] leasing and on [terminal rental adjustment cause] leases. … We have to find ways to make it affordable for them to get over this hump for a little while.” 

Lenders should also work on building close relationships with sales staff at dealerships, rather than just finance and insurance managers, to understand their challenges and needs, Mann said. 

“That’s our mode of operation right now is really working hard to figure out what our dealers need for their customers every day,” he said.  

Learning from the past 

OEMs similarly must be prepared for “short-term issues” while focusing on their long-term business, Jennifer Costabile, general director of marketing and sales enablement at GM Envolve, said during the event.  

“Putting products in your portfolio and planning your portfolio is a long-term endeavor,” she said “So long term, we stay the course, and we know that we have to continually improve our product line, enhance our product line, make changes that customers ask for. Short term, we will bob and weave and do what we need to do to help our customers get the products that they need to do the work.” 

Learning from previous global challenges — such as the pandemic, natural disasters and trade wars — can help industry professionals prepare for supply chain disruptions, price increases and other challenges that arise due to tariffs, Mandar Dighe, vice president of marketing and sales at commercial vehicle upfitter Knapheide, said during the event. 

“We’ve got to be able to adjust, and all those things that happen affect the economics of things up and down,” he said. “We’re still very bullish on the fact that America needs vehicles, commercial vehicles, in order to maintain its position.” 

The third annual Equipment Finance Connect at the JW Marriott Nashville in Nashville, Tenn., on May 14-15, 2025, is the only event that brings together equipment dealers and lenders to share insights, attend discussions on crucial industry topics and network with peers. Learn more about the event and register here.