The right lease structure depends on how you operate, not just the monthly rate. RTEX works with each customer to understand their traffic, maintenance capabilities, and risk tolerance — then recommends the structure that actually fits.
Discuss Your Options →Railcar lease types vary significantly in cost, responsibility, and flexibility. Understanding the practical differences between them — including who handles maintenance, how terms are set, and what drives total cost over time — is essential before committing to equipment. Below is an honest overview of the most common structures used in the North American railcar market.
Despite often being called a "full-service lease," most railcar leases in the industry are technically a modified full-service arrangement. Responsibility is divided by cause: the lessor covers wear-related running repairs, while the lessee is responsible for damage caused by loading, unloading, or product handling.
RTEX (Lessor) is typically responsible for:
Lessee is typically responsible for:
In a true triple net lease, the lessee assumes full responsibility for the railcar — maintenance, repairs, regulatory compliance, and all associated costs. RTEX provides the car at a lower monthly rate; the customer manages it essentially as though they own it.
Lessee is responsible for:
A modified net lease sits between the full-service and triple net structures. In this arrangement, RTEX maintains the cars under the RTEX reporting mark and manages AAR compliance — but the lessee is responsible for the cost of repairs, including running repairs.
How it works:
A per diem lease is a specialized structure where railcars are placed under a railroad reporting mark and earn car hire revenue based on North American rail industry conventions — an hourly rate and a mileage rate paid by each railroad the car travels on.
How it works:
Most railcar leases run 3 to 5 years, though shorter and longer terms can be arranged. Standard terms reflect a balance between supply and demand cycles, with lessors pricing rate risk over longer horizons.
The single biggest factor pushing customers toward longer lease commitments is in/out-of-service costs. These include freight to move cars into service, pre-lease modifications and stenciling on the front end — and on return, cleaning, repairs to bring the car to AAR standard, and outbound freight. These costs can be substantial and make short-term leases economically inefficient for many car types.
Short-term and spot leases are possible, but the in/out cost economics typically make them best served through a sub-lease of a similar product already in service — avoiding the mobilization costs entirely. RTEX can help identify sub-lease opportunities through our network of customers and shippers.
For customers with stable, predictable volume, longer terms offer the lowest monthly rate and supply certainty. Purchase options at end of term can also be negotiated. The trade-off is reduced flexibility if traffic patterns change.
RTEX walks every customer through the trade-offs before recommending a lease structure — no obligation.