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

RedBeard,
I would say that your new accounting is giving you a more accurate way to look at things than the old way. By adding in your depreciation you are not getting a "real" look at profits. You and I can have the same depreciation on our taxes at the end of the year but if we are in different tax brakets it will mean different things. Also, this is not considered income but rather would affect your net worth as you building equity in your truck.

While what truely matters at the end of the day is how much you keep I do like seeing accounting for drivers that get FSC to see what the cost is before and after removing FSC. Before is critical for calculating your actual cost per mile and the after is a good gauge to see if your company is keeping up with FSC.

Not sure if your numbers are after taking money out for a maintance account. I would suspect not as you are accounting for maintance cost as the happen. But if you are make sure as you are doing you tax planning you understand that what comes out is still income. Years ago when I was leasing and making good money I was taking $.10/mile out and had about $900 one year in maintance outside of PM's. But I was planning based on that money being spent. It was a shock at tax time. I had over $14,000 in additional income.

 

Per conversation with company official some months back............ Crete trys it's best to insure O/O success, however if the O/O wants to leave they have several options, 1) sell the truck and payoff bank note, 2) refinance the loan (couldn't do this with a lease purchase), 3) as a last resort Union Bank is willing to work with O/O to find an approved carrier, other than an Acklies Company carrier, to lease their truck to.

Remember no one is forcing said O/O to use Union Bank to finance their truck in the first place. In order to ensure they get their truck payment Union Bank stipulates, as a condition to the loan, that they require O/O to lease (sign on) the truck the truck to one of the three Acklie Companies. Union Bank knows these companies will do everything in their power to help an O/O get the miles they need to be successfull. Again, if the O/O does not like the conditions of the Union Bank loan they are free to get financing elsewhere.

 

An Operating Agreement is not a loan. It is a contract between a carrier and O/O. All O/Os sign the same contract, regardless of financing company.

 

I refinanced the truck 2.5 years ago. Have six payments left. Same truck, new contract.

 

Now I know why carriers set up all kinds of programs and change labels. There are drivers that will believe they are getting something different. That they found a special deal. I think that has been clearly demonstrated here.

 

Direct quote from the truth in lending laws you keep touting to support your argument.. but seem to not be able to find or quote.
You are trying to take your situation, and apply it to others, and doing it wrong.

 

No big al, the only thing proved here is your dislike for crete.

 

Huh? I'm an O/O. My situation is MUCH different.

And gave up on trying to help. My PAST situation was no different than what I have seen from Crete and was able to get out of it with the help of a lawyer. Haven't saved the docs and no interest in looking.

So, let's just say I am wrong. But if any of you should find yourself in a situation that you need to break your agreement or loose your savings and house, just remember this discussion.

As far as if this is an L/P by a different name, the only thing that I see that addresses the issues that have been documented by OOIDA that are the problems with these deals is that you have your name on the title.

Would love to be proven wrong. And in the spirit of all wanting to defend this program - document it.

 

I understand that. You posted in defense of the financing agreement a statement from your new operating agreement. This is meaningless. But you seem to be smart enough to understand this.

 

That is only for those of you who run on a MILEAGE pay program. percentage usually always pays better. I avg $2.75 cpm for all the miles I ran last year, which were 95,197