Commercial Vehicle Lease

AFG Canada’s Commercial Auto Leasing Program is designed for credit unions of all business lending experience. AFG Canada’s TRAC lease (Terminal Rental Adjustment Clause) product can be offered to existing and potential members alike when financing options are discussed by the loan officer or at the dealership. The credit union makes the credit decision, the dealer executes the necessary paperwork and the credit union can fund the dealer directly.

AFG Canada’s comprehensive insurance protection, as well as its unmatched experience with member education and disposition of returned vehicles at lease end assures a safe, competitive and compliant program that is proven to increase the credit union’s loan growth.

Program Features

Comprehensive Lessor Related Insurance

Protects the credit union from potential exposure in a wide variety of circumstances:

  • Contingent Liability/Contingent Physical Damage Insurance
  • The credit union is named as the loss payee guaranteeing the credit union receives the insurance benefits
  • Full Care, Custody, and Control Garage Insurance

No Residual Risk to the Credit Union

The AFG Canada Business Lease is an open-ended, Terminal Rental Adjustment Clause (TRAC) lease.

  • The lessee is responsible at lease end for any difference in realized market value and the residual value of the vehicle.
  • The lessee is guaranteed a certain residual price for the lease when the lease ends.
  • TRAC lease residuals are set with conservative industry standards, to put the business member in the best possible position at lease end.
  • The credit union has no residual risk with a TRAC lease.

Complete, Customized Packages

All necessary forms, designed to be industry compliant and province-specific, are provided at no cost to the credit union.

Tax Filing & Accounting Management

We report and remit the sales tax and manage all lease accounting, relieving your credit union from accounting and tax remittance responsibility and reducing the amount of accounting work your credit union has to perform.

Extensive and Ongoing Training

We provide pre-implementation as well as ongoing planning and training for credit union staff to ensure the program launches and runs smoothly. We also provide active support to the dealerships in your network.

Effective Remarketing Services

Experienced disposition experts aim for top dollar recovery. They help maximize sales proceeds while minimizing selling time. Our team assists the member with a convenient vehicle return process on behalf of your credit union. We also provide assistance with repossessed vehicles.

Member Education

We provide extensive member education, both through personal tele-consulting as well as through brochures and other resources, which enhances member retention and product satisfaction.

Business Member Benefits

Tax-Oriented Lease and a Pre-Established Purchase Option

The AFG Canada TRAC lease provides a business with the tax benefits associated with leasing. The purchase option price is established at lease inception and the lessee can purchase the vehicle at lease end for the pre-established price.

No Down Payment Required

There is no down payment or security deposit required as part of the leasing program.

Simple Interest Calculation

Simple interest is the fairest lending calculation methodology which helps keep the member’s payoff balance lower.

Flexible Options

With AFG Canada’s business auto lease, the member has many options available; purchase and keep or purchase and sell at any time, lease again, trade-in at a dealer, or turn in at the end of the lease term.

Many lease programs still impose large penalties, even thousands of dollars if the lease is paid off early. With AFG Canada’s business lease, the member is only responsible for the current payoff at the credit union and a market competitive purchase option fee (as disclosed in the lease agreement) if he/she elects to end the lease early, plus any unamortized expenses.

No Cash Outlay for Taxes and Registration

Initial taxes and registration fees can be included in the capitalized cost of the vehicle. There is no up front taxation of the vehicle purchase price for the member to pay or for you to finance.

Lease-End Assistance

An AFG Canada customer service rep works with the member to advise them on their lease-end options and how to conclude their responsibilities.


6380 Chelmsford Street
Richmond, BC V7C 5E1

Toll-free Numbers:
Program Information: 888-486-1278
Lease Return Assistance: 877-354-4234, Option #2

Program Information:
Lease Return Assistance: