Okay, so I bought a used truck from Crete Carrier.

OK, he was told $39-42K for '06 without APU. And you are saying $28-32K. So add $3000 for the warranty and breaks. Tires I will say are a wash. Most dealers will buy lease returns and they already come with Caps as that they have to have 50-70% rubber when returned and 40% breaks. So we are getting closer.

So maybe not as bad as thought. Not a screaming deal. But when I go to Dodger stadium I expect to pay more for my dog and beer.

Thats why I thought I would post some questions here.

 

If it walks like a duck, quacks like a duck then by Crete’s definition it is a dog.
In the trucking industry we use the term Lease-Purchase to describe the practice of as a condition of financing that you have to “lease on to” a specific company. Actually, if you have three or less companies to pick from then it is an L/P. This is not to be confused with how the financing is structured for tax and accounting purposes.
It is much different than what you described as a condition to getting a loan for a truck. That loan is a business loan. And by law the lender needs to show that you are generating incoming from that business. Has to do with money laundering laws. But also common sense. Even without the laws what would you think of a finance company that loaned a guy money to buy a truck that had a suspended CDL or couldn’t pass the medical.
And don’t get me wrong. Of the L/P programs out there Crete has one of the only ones besides Boyd that I would tell someone to look at. You have a lease completion rate of around 20% compared to the industry at 11%. And that is taking ’08 and ’09 into account.
But if you can back of the cool-aid without going into withdrawals for a bit you will see no matter what they tell you it is – if it walks like a duck, quacks like a duck then it is a duck.

 

Yes, business is picking up. Stopped at the dealer I bought my truck from last Thursday and talked to the buyer. He told me that '06-'07 off-lease trucks are being sold before the lease is completed AND the leasing company is offering incentives to have trucks come back early. Insane.

I think I should get a new truck but the boss (also know as the wife) says no.

 

These terms changed int he '90's as Carriers started marketing to the O/O, or shoud I say independant. It was a big deal to give up your independance. So companies started by offering dispatch services. "Stay independent and we will find your loads." And then they started competing by offering additional serivces, covering base plates.

Then "Hey, we have the best deal for O/O's. Use our authority and don't worry about all that other stuff. You are not giving up your independance just the hassle and expense."

When I used to ride with my uncle when I was a kid you had four classes of dirvers. Union, Company, Lease (not L/P) and O/O. And I think the had a different term for the lease guys (not degrogatory).

So seems I'm just a little old school on this.

But all this L/P or O/O thing and how terms get changed would be a good phycological study.

I guess I'm in feather ruffuling mode this morning.

 

we has authority in thr late 80's and early 90's
back when it was hard and not every tom dick n harry had it.

your either a contract carrier or a common carrier.

now as a carrier you can also be an owner operator, or not. you dont have to own equipment to be a carrier.


in my book there is no such thing as lease operators which what most people call people in lease perchas deals. i xall them bait for bankruptcy attornys

 

What is really sad is that because of the abuse of these programs the laws have been tightened. So you hear about these guys with HUGE debt from the lease they just walked away from. They talk to a BK attorney and rather than the attorney checking to see if the debt is valid they just assume it is. I believe most could avoid BK and get escrow money returned if they just knew their rights.

 

P

Can you cite the source of information for completion %? Or are you pulling numbers out of the air to bolstered your argument?

 

What, don't think they are that good?

I will go through my notes from the TCA event in San Diego (sorry I keep calling it the CTA). Crete and Boyd Brothers got recognized for the work they are doing in this area. The industry average was around 10%. Boyd was over 40% and Crete was over 20%. They made a point of saying that these are full-term numbers. Not the the completion numbers.

If I can't find it online I will scan the handouts from the presentation. The session was about how companies can set-up a profitable lease program that was being lead by some guy from Crete.

OK, since we are one the topic. A carrier that does L/P is required by law to provide a 12-month completion number when someone is signing up for a lease/finance program. Now, what you and I think of completion would be if you have a 36-month lease and you lease for the full 36-months then that is "completed".

But in this wonderfull industry. Completed is calculated based on how many people sign papers returning the truck to the carrier compared to how many trucks are being leased in that period. What they are not counting is the people that just walk away and leave a truck at the TA.

In 2009 CRE had a 140+% completion based on those calculations. Makes you wonder how many abandoned trucks they had.

But the recognition was based on how many actually completed the terms of the agreement.

Learned a lot at this meeting. If you can afford to go to a truck show make sure you take the extra time and money to participate in the meetings.

 

Any supporting documents would be appreciated.

 

I'm confused. You think the numbers are low? You are looking at 60-80% of the people entering the program completing it. Why would you question that? Unless you think that is high. Just a strang challenge coming from a Crete Fanboy.