Celadon Lease Purchase

Most of what makes you fail in a lease wont even be in the contract. These companies know that you can't fool all of the people all of the time. So the contracts, while vague, are pretty cut and dry. Its the variables that get you. For example consistent heavy freight, rising fuel cost and lack of miles. Currently there is no law that penalizes companies for taking advantage of gullible or naive unsuspecting drivers. Companies exploit drivers by the thousands every month. The cycle is vicious, and perpetual. But you live and you learn. The lease is designed to enrich the company who is leasing the truck.

The company assumes no risk in most cases. The driver pays for the truck, insurance, fuel, cat scale, tolls, maintenance escrow, saftey deposit and other miscellaneous items. It is a win win situation for the company. There are some drivers who completed their lease, but they are few. Celadon has company drivers, and you were competing for freight with them, probably unbeknownst to you. Your rate should be enough to sustain you. Most O/O's wont even get out the bed to haul anything for less than 1.80 per mile plus fuel surcharge. So if your hauling 1.24 cpm freight, your already fighting an uphill battle. Visit OOIDA's web site for more info on the subject of unscrupulous and unethical but very legal business practices. You'd be shocked to know how bilateral these companies are and how the dough just rolls in. Good luck driver

 

I just turned down Celadon's lease purchase deal.

The deal breaker for me was this: 11 cent per mile maintenance - no cap. If you complete the lease, they keep half the money in your maintenance account. If you walk away from the lease, they keep all of it.

Sorry Celadon, but that is NOT YOUR MONEY. Another word for it would be "stealing".

Let's do some math here so you can see how this is utterly a bad business decision.

Let's suppose you run an average of 2,500 miles a week.

2,500 x .11 = $275.00

$275.00 x 4 weeks in a month = $1100.00

If you run 48 weeks in a year (taking 4 weeks off in a year) that's $13,000. If you use half of it for maintenance and PMs that's still $6,000 dollars per year.

Now, how many of you are going to use $6,600 per year in maintenance and PMs? If you are, you need to get rid of that truck. Keep in mind these newer trucks still have warranties on them.

And for the next shocker....if you got a newer truck, a 2010 or 2011, then buyout at the end of the lease is....wait for it...drumroll....$70,000. To buy the truck out, you must have completed 500,000 dispatched miles.

Would you buy a 6 or 7 year old truck with more than $500,000 miles on it for $70,000? If you do, there's a word people will often use to describe you. It's called "F O O L".

When I was told this, I handed the lease papers right back to them, called the airport and took the next plane out. I was born at night - but not last night.

 

might check your math.........

 

48 times 275 is what ??

 

Yes, I saw the mistake in the math, but edited it to show how bad a deal this is.

Like I said, the newer trucks still have warranties on them, so you would only be paying for PMs until the warranties expire.

While I was there, I was talking to a lease op who had $10,000 in his maintenance account. He was upgrading his lease from an older lease plan they had because his maintenance account only covered the power train. His starter went out - he had to pay to get it fixed, his maintenance account didn't cover it. His AC went out - same thing. He had several other things he had to pay to have fixed.

Here's the kicker. He wasn't sure if his $10,000 in his maintenance account would transfer over to the new lease because he didn't complete the old lease.
He said he's been leaseing for 1 year.

It's not stealing if you agree to let them take the money, which you agree to by signing the lease.

 

So.... How does a MAINTENANCE ACCT not cover CORRECTIVE MAINTENANCE???????????

 

Because his old lease stated that it only covered the power train from what I could gather from him.

He said they kept "double talking" (whatever that means) whenever he asked why he couldn't get his truck fixed. He never gave me the actual reason, because he didn't know, so I'm assuming the maintenance account probably only covered the power train, which from I could gather from him, sounded like the only thing they would fix.

The point is, he didn't even know if he was going to be able to transfer his maintenance money to his new lease.

Either way, he'll either be giving Celadon half or all of his maintenance money since, technically, he didn't complete his original lease, unless Celadon will agree to transfer his maintenance money to the new lease, which even if he completes it, they'll still get half.

I told them not "no" but "Hell No!" and walked out. Think about it. They advertise .90 cpm paid to the driver, but if they charge you .11 cpm for maintenance, then keep half of it when you complete the lease, are they really giving you .90 cpm? What if you walk away from the lease and they keep all of it? How much in cpm do you think you made then?

I'm going back to Trans Am. Their lease deal is much better than this.

 

Wow.... RAPE!!!

 

And yet EVERY day there's people on TTR inquiring about the "share cropper" plan and when you speak negatively about it they either don't listen or figure they're smarter than their predeceasors.

 

Anybody see anything similar here? I'm talking thought the whole website. CR England lease purchase, Prime lease purchase, this one and that one lease purchase....... Nobody sees a common thread here? Let me help you: LEASE PURCHASE. It's not designed for you to succeed. It's designed for you to fail. You'll never own the truck. And most people who get sucked in are rookies and the rest are the "fish". You know. Hook line and sinker. These are the guys who go from one L/P to another L/P to another and so on. It's a bad idea to start with. And then let's be honest, nobody ever accused truckers of being rocket scientists.