PACCAR Financial Corp. Used Truck Center

What PACCAR Financial Corp. Used Truck Center does

PACCAR Financial Corp. (PFC) is the captive finance subsidiary of PACCAR Inc. (NASDAQ: PCAR), exclusively serving buyers of Kenworth and Peterbilt commercial trucks in the United States and Canada. Founded in 1961 and headquartered in Bellevue, Washington with a Canadian regional headquarters in Mississauga, Ontario, PFC offers a portfolio of loan and lease products tailored to commercial trucking operators ranging from single-truck owner-operators to fleets of 100+ vehicles.

The product suite spans two core categories: Loans (variable/floating rate indexed to US Prime or Canadian CDOR, and fixed rate loans with terms up to 60-72 months) and Leases (Fair Market Value Lease, TRAC Lease, Modified TRAC Lease, and Municipal Lease for tax-exempt entities). These are complemented by an extensive array of bundled incentive programs including MX engine and powertrain rebates ($3,000-$3,500), down payment matches up to $5,000, extended warranty credits ($1,776 per unit), and certified pre-owned truck incentives. Operational technology includes a proprietary 24/7 online services portal for account management, payments, and payoff requests, plus a first-in-truck-OEM-captive deployment of DocuSign for electronic contract execution with bank-level encryption and audit trails.

Revenue is generated through interest income on loans and lease payments on equipment financing arrangements, with sales conducted through the captive Kenworth and Peterbilt dealer networks across the US and Canada. Distribution is exclusively channel-based through OEM dealers, supplemented by regional service centers for account management and an online portal for self-service. Related operating affiliates include PacLease (full-service leasing) and PACCAR Financial Used Trucks (certified pre-owned sales), both wholly owned under the PACCAR corporate umbrella. Pricing is quote-based, dependent on credit approval, and not publicly disclosed.

Name

PACCAR Financial Corp. Used Truck Center

Legal name

PACCAR Financial Corp.

Website

https://paccarfinancial.com

Company type

Private

Founded year

1961

Operating status

Operating

Short description

PACCAR Financial Corp. is a captive finance subsidiary of PACCAR Inc., exclusively providing loans, leases, and bundled warranty and powertrain incentives to Kenworth and Peterbilt commercial truck buyers across the United States and Canada through OEM dealer networks.

Ownership category

akta.pro rank

Product category

Commercial Truck Finance and Leasing

NAICS

Automotive Equipment Rental and Leasing (5321), Sales Financing (522220), Sales Financing (52222)

SIC

Finance Lessors (6172), Services-Auto Rental & Leasing (No Drivers) (7510), Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

Fleet & Commercial Vehicle Finance (FSAKADAE)

akta.pro secondary industries

Leasing & Lease Buyout Financing (FSAKADAC), Dealer Floorplan & Inventory Financing (FSAKADAD)

Keywords

• Commercial truck financing
• Commercial truck leasing
• Captive auto finance
• Equipment loans
• Fleet leasing

Headquarters

HQ city

Bellevue

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Commercial Truck Financing: PACCAR Financial provides financing for Kenworth and Peterbilt trucks through variable-rate and fixed-rate loans. Customers maintain ownership of equipment at loan maturity. Interest payments and depreciation tax benefits typically deductible. No mileage or usage restrictions apply.
2. Truck Leasing Programs: Multiple lease structures including Fair Market Value (FMV) Lease, Terminal Rental Adjustment Clause (TRAC) Lease, Modified TRAC Lease, and Municipal Lease. FMV Lease offers 24-60 month terms with options to return, renew, or purchase at fair market value. Leases provide off-balance sheet financing and tax-deductible payments.
3. Certified Pre-Owned Truck Financing: Financing for certified pre-owned Kenworth and Peterbilt trucks sold through dealer networks. Includes special rates and incentive programs for CPO truck purchases.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels5 records

Core offering

PACCAR Financial Corp. is a captive finance company that provides loans and leases for the purchase of Kenworth and Peterbilt commercial trucks in the United States and Canada. Its lending products include variable/floating rate and fixed rate loans, while its leasing portfolio covers Fair Market Value (FMV), TRAC, Modified TRAC, and Municipal leases. The company also supports certified pre-owned truck financing and bundles promotional programs such as extended warranties, MX engine rebates, and down payment matches with its financing offers.

Product overview

PACCAR Financial Corp. is a captive financial services company for PACCAR's truck brands (Kenworth and Peterbilt), offering a portfolio of financing and lease products for commercial trucks. The core product portfolio consists of two main categories: Loans (Variable/Floating Rate and Fixed Rate) and Leases (Fair Market Value, TRAC, Modified TRAC, and Municipal). These are supplemented by an extensive array of special offer programs including extended warranty packages, engine rebates, powertrain rebates, down payment match programs, and certified pre-owned truck incentives. The company also provides an online self-service portal for account management. Products are exclusively targeted at Kenworth and Peterbilt truck buyers in the U.S. and Canada.

Differentiator

Problem solved

Functional benefit

Brands

• PACCAR Financial Used Truck Center: Certified pre-owned Kenworth and Peterbilt trucks sales platform operated by PACCAR Financial

Products and services

• Fair Market Value (FMV) Lease A lease product for Kenworth and Peterbilt commercial trucks with 24-60 month terms, allowing customers to return, renew, or purchase the truck at fair market value at end of term; offers lower monthly payments, off-balance sheet financing, and tax-deductible payments.
• Terminal Rental Adjustment Clause (TRAC) Lease A lease-purchase option with lower monthly payments and a set residual value, allowing end-of-lease options to refinance, pay off, or return the truck for fair market value.
• Modified TRAC Lease A lease similar to TRAC with a pre-determined residual and ownership opportunities at lease end, typically qualifying for off-balance sheet treatment because PACCAR Financial participates in residual risk.
• Municipal Lease A lease product for tax-exempt entities and government bodies acquiring capital equipment, featuring tax-exempt rates, flexible terms, non-appropriation rights, no prepayment fees, and $1.00 buyout at maturity.
• Variable/Floating Rate Loan A loan product with variable interest rates tied to market conditions, featuring constant monthly payments for the loan duration with a potential balloon payment if rates rise; no mileage or usage restrictions.
• Fixed Rate Loan A loan product with a locked interest rate and predictable monthly payments over the term, ensuring stable financing and Kenworth/Peterbilt ownership at contract end.
• Certified Pre-Owned Truck Financing Financing for certified pre-owned Kenworth and Peterbilt trucks sold through the dealer network, with special incentive programs including $1,000 prepaid gift cards for qualifying purchases.
• Online Services Portal Customer self-service portal for managing loan and lease accounts, including adding financial institutions, scheduling payments, viewing account information, requesting payoffs, and contacting customer service.

Quantifiable outcome

• Additional 2 years/200,000 miles warranty coverage at no extra cost on Class 8 trucks when financing through PACCAR Financial
• +3 more outcomes

Named customers2 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature2 records

Partnerships

Six partnerships are on record, tiered core and minor.

• KenworthcoreChannel Partner/ Reseller/ Distributor · 1 January 1961Kenworth Truck Company is a PACCAR subsidiary building premium commercial vehicles. PACCAR Financial serves as the exclusive captive finance partner for Kenworth trucks, providing dedicated financing and leasing solutions to Kenworth dealers and customers since 1961.
• PeterbiltcoreChannel Partner/ Reseller/ Distributor · 1 January 1961Peterbilt Motors Company designs, manufactures, and distributes premium commercial vehicles in the U.S. and Canada. PACCAR Financial provides captive financing for Peterbilt trucks through dealers as the dedicated finance partner since 1961.
• PacLeaseminorStrategic or Co-development PartnerPacLease is a PACCAR-affiliated company offering customized full-service leasing packages for truck fleets. PACCAR Financial refers customers to PacLease for those seeking full-service leasing rather than financing.
• PACCAR Used TrucksminorStrategic or Co-development PartnerPACCAR Used Trucks (paccarusedtrucks.com) is an affiliate website showcasing certified pre-owned Kenworth and Peterbilt trucks available through PACCAR Financial Used Truck Centers. Financing through PFC qualifies for special CPO incentives including $1,000 gift cards.
• DocuSigncoreTechnology or IntegrationDocuSign provides electronic signature technology for PACCAR Financial contract execution. PFC was the first captive finance company for a truck OEM utilizing DocuSign. Features include bank-level encryption, audit trails, and mobile signing capabilities.
• PACCARcoreOthersPACCAR is the parent company and global technology leader in design, manufacture, and customer support of premium trucks under Kenworth, Peterbilt, and DAF nameplates. Also designs advanced diesel engines and provides financial services and information technology.

Scale indicators2 records

Recent moves6 records

Expansion highlights6 records

Emerging players

• Element Fleet Management: Large independent fleet management and financing company serving commercial vehicle fleets. Competes with PACCAR Financial's PacLease affiliate for full-service leasing, though operates outside the captive-OEM model.
• Hino Financial Services: Captive finance arm of Hino Trucks (Toyota Group), providing financing for medium-duty commercial trucks. Smaller direct competitor focused on Class 4-7 segment versus PACCAR's broader Class 5-8 presence.

Broad incumbents

• Ford Pro Commercial Financing (Ford Motor Credit): Captive finance arm of Ford, offering financing for commercial vehicles including medium-duty trucks (F-650/F-750). Broader incumbent with mixed consumer and commercial focus, includes truck financing as part of a much larger portfolio.
• Mercedes-Benz Financial Services: Captive finance arm for Daimler (now Mercedes-Benz Group) commercial vehicles including Sprinter vans and medium-duty trucks. Broad incumbent with overlapping commercial vehicle financing capabilities in the US market.

Direct peers

• Daimler Truck Financial Services: Captive finance arm of Daimler Truck North America (Freightliner, Western Star, Thomas Built Buses). Direct competitor offering loans and leases for Class 6-8 commercial trucks in the same customer segments as PACCAR Financial.
• Volvo Financial Services: Captive finance arm of Volvo Trucks, providing loans, leases, and insurance to Volvo truck customers in North America. Closest direct peer to PACCAR Financial given the analogous captive model serving premium Class 8 brands.
• Navistar Financial / International Finance: Captive finance arm of International (formerly Navistar) trucks, providing financing for International brand commercial trucks. Direct competitor in the captive Class 6-8 truck financing space.
• Mack Financial Services: Captive finance arm of Mack Trucks (Volvo Group), providing financing and leasing for Mack Class 8 trucks in North America. Comparable captive model with similar product suite (loans, leases, TRAC structures).

Others

• PacLease (PACCAR affiliate): Affiliated full-service leasing arm within PACCAR. PACCAR Financial refers customers seeking full-service leases to PacLease, making it a complementary rather than competing entity within the same parent ecosystem.

Regional players

• Isuzu Finance of America: Captive finance arm of Isuzu Commercial Truck of America, serving the Class 3-5 low cab forward segment. Adjacent peer with a similar captive-OEM business model but a narrower product segment.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/paccar-financial-corp

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Subsidiaries2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about PACCAR Financial Corp. Used Truck Center