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

I just spoke with Tom at OOIDA, and he confirmed that since Crete's name is not on the title and since the loan is not done by Crete, that it cannot be looked at as a lease. Even if the lending institution requires the truck to be leased to a particular carrier(s) it is still a loan, and there would be punitive ramifications if defaulted.

Remember, no one is forcing a prospective O/O to use the bank affiliated with Crete. If they don't like the terms of the note they are free to finance elsewhere.

I mentioned your scenario to Tom and he was not able to confirm or deny that they did help you. But he did say that regardless, a bank loan is not a lease.

 

I never said a bank loan is a lease. If you read my posts, I have been saying that if as a condition of ANY type of financing you are required to only work for one carrier then you have protections that someone that does not have this requirement.

So if I am wrong (and ask my wife, it has been known to happen) then I just moved Crete from the top of the list of a viable option for someone that wants to become an O/O in the future.

If you stop getting miles from Crete (and ask all those drivers with 25-years at JB Hunt what happened after the old man passed. It was like a cult before. They could do no wrong) then you have ZERO options if you are not able to refiance you truck.

Talk about over the top, crazy risk.

 

The only way to settle this debate is for you to provide info as to where these protections can be found.

And you most certainly have made it very clear that you think Crete's purchase program is nothing more than a glorified L/P, and it's not. Now you want to say all you were trying to do is point out the consumer has certain protections because of the stipulations in the terms of a loan.

 

OK, you and Bill are getting tied up in labels. I don't care whether it's called a loan or a lease or whose name is on the title. If you are required to lease onto a specific carrier and follow certain operational rules as a condition of the loan, then it ain't much different than a fleece/purchase. Crete has moved a few letters around so you can call it a loan, but essentially you are still in the same boat. You are beholden to Crete. If freight dries up, or you piss them off and they don't run you, you are screwed.

At least for me, the benefit of being an O/O is that I can take my ball and go home if I don't like what is going on. I can use that in my daily dealings with a carrier. If they have me by the cojones, it's a lot harder to do.

 

I just signed a new Operating Agreement with Crete this morning. "Contractor acknowledges and agrees that if, in Contractors opinion, Carrier fails, refuses or is unable to make sufficient use of the Equipment to permit Contractor to meet its financial obligations or to otherwise allow Contractor to receive the amount of revenue desired or anticipated by Contractor, Contractor's sole and exclusive remedy is to terminate this Agreement in accordance with the provisions of Section xx.xx hereof". The section referred to stipulates a 30 day written notice of lease termination.

So as you can see the O/O who CHOOSES to use Crete's affiliated bank, not owned by Crete, still has recourse if they are not happy.

 

But what happens to the truck if an O/O using Crete's bank chooses to exercise that option? Are they free to lease the truck on elsewhere without finding alternative financing?

 

Now I am confused. I thought you said you refianced away from Crete so that you are not obligated by your financing agreement to be with Crete regardless of if they can use you or not? Are you signing the same agreement as someone that uses the affiliate bank that has statements requiring that the equipment be leased onto Crete?

If the finance company has language in the contract that is similar to what you posted for your operating agreement then I would say that this is the best in the business. And probably the only one worth looking at with a large carrier. Biggest issue with all of these programs is being locked into the carrier as a condition of financing.

 

Yes, 100% correct. My main point all along has been it doesn't matter what you call it, the Blue Monkey Finance Plan, if you are required to lease to a specific carrier then you have protections under the law.

But as I am not going to go digging in consumer law to prove what I have personally experienced I will just say that I am wrong with what Crete is offering.

Big Al, do you have your own authority sitting ideal? I have heard from drivers that are leased on that when times are slow that they get better miles/loads because it is some much easier to just start running under your own authority than even moving to a different carrier. Wondering how true that is.

I know a couple years ago when things slowed that the guys under JB Hunt Power Only program seemed to be the only ones at the company doing more than 2500 miles a week.

 

But then you will lose the truck and all payments made on the truck.

BTW, i don't want to go back and read all the pages, did you ever pay off the 1st truck? is the new lease for a different truck or the same one you got from them before???