Celadon Lease Purchase Info

[Drifter McDuck]

Orientation isn't too bad.... No pay but they do put you in a hotel and provide 3 meals a day. 2-3 days to complete that. Dealing with quality leasing is a bit of a pain.... If you go with a new truck you will be in and out relatively fast. If you go used, you may be there a few days waiting for maintenance and repairs etc. they are really pushing the Pro-Stars. The recruiters will tell you that all freight is $1.69-$2.29 per mile (of which you are paid 70%), but that is not true. They have some very low-paying runs. On the up-side, some are paying over $3 per mile, and you have the right to refuse a load. You also get 70% of the fuel surcharge. I've done two loads so far, and with the FSC, made $1.13 cpm on a 1400 mile run and $1.25 on a 450 mile run. They tried to give me a load that was 1300 miles at .69 cpm but I refused it and got a higher paying load that was only 9,000 pounds. Another guy who I went to orientation with has done $1.41 and $1.63 on his first two loads. Additional stop pay is $50. Mostly drop and hook but there are some live loads. So far, not too bad but I'll update as I do some more runs.

 

[mndriver]

Best of luck to you.

 

[krelithous]

best of luck yo you!!

 

[Tazz]

He is now hauling cans and home daily.

 

[Blood]

You also get 70% of the fuel surcharge.

That's crap unless they are buying 30% of the fuel.

 

[Tazz]

I asked a PTL guy about that. He said they get 25% (?) because they pay for your fuel discount.

Don't think about that statement to long without a large wooden spoon in hand.

 

[Blood]

I asked a PTL guy about that. He said they get 25% (?) because they pay for your fuel discount.

Don't think about that statement to long without a large wooden spoon in hand.

Yeah, some of these carriers even build discounts into the 'average rate' when telling prospects what sort of revenue to expect.
The rate is really higher than the rate because we're saving you 4 cpm on fuel.


Must be core that curriculum I heard about or sumpin.


The 200 truck carrier I'm running for now passes all the discount straight through.
I get forwarded emails of their daily discounted pricing from Petro, Loves & Pilot.
They charge a transaction fee of $1.60 and today's [Missouri] fuel is at $1.584 down the road at T/A which is 24.5 cpg cheaper than the lowest local price [Quiktrip].
Often the difference is 40 cpg or more.
They base FSC on national average [retail pricing].

 

[Blood]

My actual rate is 1.20 pm
plus 14.00 pm because I didn't spend $140 k on a new truck this year...
plus FSC.


I won't start the truck for less than 15.00 pm.

 

[krelithous]

anybody should know after doing there research that buying your own truck elsewhere and leasing it on to a decent company and getting paid what your worth is a far better deal

 

[Drifter McDuck]

Not only do they take 30% of the FSC, but come to find out they get a 50 cent per gallon discount on fuel at pilot FJ, but they don't pass that on. They actually charge you the full pump price, plus a $3 processing fee for using their fuel card.

 

[Rigjockey]

What a rip! Can you pay cash or use your credit card or get yourself a flying pilot fuel card and purchase fuel that way? Or only fuel on their card?

 

[Drifter McDuck]

You can fuel anywhere you want, and you're not obligated to use their fuel card. It just sucks because passing on that fuel savings would have made a huge difference in my bottom line.

 

[Rigjockey]

You can fuel anywhere you want, and you're not obligated to use their fuel card. It just sucks because passing on that fuel savings would have made a huge difference in my bottom line.

Get your own fuel savings by paying cash, credit or via the flying pilot card.
After all, you're a business owner now. It is up to you to protect your bottom line, should you choose to succeed.

 

[ironpony]

As a business owner (that's what you are now) its not about your gross, its about your bottom line... your net profit before taxes. You need to get an accounting system set up so that you can quickly and easily see what's going into your wallet.

Gross revenue - expenses = net

That's all that's important! So many lease operators let the big bucks they are grossing blind them to the fact that their expenses are bankrupting them. Don't be one of those guys.

Right now, your two biggest expenses are what you pay yourself, and fuel. Put yourself on a salary... everything else needs to go into savings to cover unexpected expenses... they happen, and can cripple you financially if you don't have cash to fall back on.

Fuel is your biggest controllable expense. If you cut the fuel bill by $300, that goes right into your pocket. You only have to go as fast as necessary to get to your next destination on time. Faster than that is a waste of fuel, and a loss of revenue to you. Don't let your right foot do your thinking for you.

Good luck.

 

[mndriver]

There are so many ways leasing on is taking money out of your pocket. And not chump change either.

What thread was that in that went to like 7 pages. Someone asked about IFTA if I remember.


Found it....


Let's Argue About IFTA in the most confusing manner possible

 

[ironpony]

If the carrier is paying IFTA tax for you, you're getting screwed on that as well.

 

[Blood]

If the carrier is paying IFTA tax for you, you're getting screwed on that as well.

Not necessarily.
The company did the IFTA at the last carrier I leased to but figured only my own miles and purchases to calculate my IFTA.
I got a nice refund every quarter by buying Illinois fuel at about 10 cpg more than Missouri but paying 41 cpg fuel tax instead of 17 cpg.

The current company files the IFTA but doesn't do any charge-backs (or pay any refunds) so I buy almost all my fuel in Missouri and let them pay the Illinois fuel tax on 60% of my miles.

In either case I had the option of running my own IFTA.
In the former it was just one less thing to worry about, in the latter it's money in my pocket.

 

[ironpony]

Not necessarily.
The company did the IFTA at the last carrier I leased to but figured only my own miles and purchases to calculate my IFTA.
I got a nice refund every quarter by buying Illinois fuel at about 10 cpg more than Missouri but paying 41 cpg fuel tax instead of 17 cpg.

The current company files the IFTA but doesn't do any charge-backs (or pay any refunds) so I buy almost all my fuel in Missouri and let them pay the Illinois fuel tax on 60% of my miles.

In either case I had the option of running my own IFTA.
In the former it was just one less thing to worry about, in the latter it's money in my pocket.

You misunderstand @Blood - filing IFTA for you is fine. Its when they pay it for you that's the problem. Then the carrier pockets that savings on base price fuel by forcing the operator to pay pump price, and keeping the difference.

 

[Blood]

You misunderstand @Blood - filing IFTA for you is fine. Its when they pay it for you that's the problem. Then the carrier pockets that savings on base price fuel by forcing the operator to pay pump price, and keeping the difference.

I understand completely.
Today's discounted ppg through the carrier I lease to is 1.584 down the road at Oak Grove T/A.
About 25 cpg cheaper than the lowest nearby pump price.


Go talk to @Skateboard

 

[Drifter McDuck]

Using the celadon card gave me the cash price at the pump. I tried paying cash and asking for the celadon rate, but they said I had to use the celadon card to gat the discounted rate. Of course.... There was a class action suit filed against celadon last year by the owner ops, over the whole fuel rebate issue. The state court ruled in favor of the o/o's and awarded $5 million in over-payments for fuel. Celadon appealed it to federal court, and as far as I know, there hasn't been a ruling yet.