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market. And among the most important of those start with Peterbilt's outstand- ing residual value, and PFC's ability to customize financing that takes maxi- mum advantage of it. FMV leases Fair Market Value (FMV) leases rep- resent 26 percent of PFC's new business in 2011, according to Hubbard. Their popularity stems from PFC's ability to accurately forecast the value of a used Peterbilt truck at the time of its return, and customize terms that allow trucking companies to realize that value in their own bottom line. "We've sold 28,000 used trucks in the last 10 years in a wide variety of market conditions," says Hubbard. "As a result, we have a very good idea what a Peterbilt truck is going to be worth four years from now. And we also have a very good feel for the value various vehicle specifications will bring in resale. "Our knowledge of the residual value of the premium Peterbilt product allows us to offer a finance product that our competition is unable to match. That's what makes the FMV lease so attractive to our customers." Customers like the lower monthly payment solutions offered by FMV leas- es, according to Hubbard. They also like the fact that their cost of ownership, for the term of the lease, is guaranteed, and not subject to the volatility of the resale market that's dictated by new regula- tions and turns of the economy. Remarketing pre-owned trucks Demand for pre-owned Peterbilts also uniquely positions PFC to serve buyers of equipment that goes back to PFC after a lease term ends. The recent opening of PFC's third used truck cen- ter in Salt Lake City, UT, complements those already operating in Spartanburg, SC, and Hickory Hills, IL. PFC also col- laborates with the Peterbilt dealer orga- nization to help market select groups of trade-in equipment. "Neither regional nor national banks have the remarketing infrastructure that we have," Hubbard says. With the growing popularity of their FMV leases, PFC is uniquely positioned to forecast used equipment availability for prospective buyers. "We know exactly how many units, by model and by spec, we have com- ing back every month," Hubbard says. "As a result, prospective customers can formulate their equipment buying plans well in advance of their needs." Attractive warranties PFC's close working relationship with Peterbilt and its dealer organization posi- tion PFC to bundle extended warran- ties with its finance offerings. Specifically, customers who purchase a new Peterbilt and finance with PFC can include a 3-year/300,000-mile basic vehicle warran- ty for Class 8 vehicles, exceeding standard warranty offerings by 2 years and 200,000 miles. Two-year, 150,000-mile warranties are available with PFC-financed medium- duty products. "These bundled chassis warran- ties have provided added value for our Peterbilt customers. Thirty-five percent of PFC's new business volume includes a warranty and they have also been quite instrumental in helping Peterbilt capture additional new truck sales. Frankly, the banks can't touch it," said Hubbard. 50 years strong Hubbard additionally reports that PFC's recent 50th anniversary celebra- tion is testament to the company's stay- ing power and industry expertise. And he notes that they're uniquely positioned to leverage PACCAR's very stable balance sheet, and have ample access to funds for borrowing. "All we do is trucking," says Hubbard. "We're there for our customers and our dealers. And like Peterbilt, the benefits of partnership extend well beyond what you'll find anywhere else in the market." PACCAR FINANCIAL CORP. Continued from page 9 10 FIRST CLASS PACCAR Financial's Used Truck Center in Salt Lake City, Utah.