Celadon Lease Purchase

Topic 4063 | Page 1

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Richard V.'s Comment
member avatar

I would be really interested to hear the average take home from a current celadon lease purchase participant. I am going to do it once the school is complete but would like to hear feedback from current participants in their program.

Old School's Comment
member avatar

Richard, you're new around here, and I don't think I've gotten to welcome you aboard yet, so... Welcome!

Hey man, here's my two cents on this subject, and I think if you'll hear me out you will save yourself some serious heartache and trouble. First off let me preface this by saying I've never had any experience with leasing a truck from Celadon, so my experiences are not specific to Celadon, nor to any other truck leasing operation. But I was a business owner in a manufacturing business for 30 years, and at one point I owned six big rigs at once for my business. I retired from that and started driving a truck as a company driver, and have been very successful at it. Driving a truck is a career that is so much like being self employed that it really fit me well. Everyday you are responsible for how much you get accomplished, there is no one looking over your shoulder to make sure you are getting it right. Anyone with a will and a determination to succeed in this business can do really well at it by being a company driver.

I want you to think about this before you decide to lease a truck. How many types of businesses can you think of that actively go out and pursue people to become their competition? I don't know of any, yet the trucking companies are doing exactly that when they try to get people to become independent truck owners through their leasing programs. That could very easily be their truck out their making money for them, and yet they want it to be your truck out there working for them. If that doesn't raise a red flag to you, then you are missing the whole point of why they offer these leasing programs. The whole point is that it removes from them both the standard maintenance and all the unexpected costs that will arise from the wear and tear on that truck, and it puts those things on you. Oh trust me, the trucking companies have got the greatest bean counters in the business world constantly trying to figure out ways to get another two cents out of a dollar, and this one works well for them. It also has left a long trail of tears from many would be truck owners who worked their tails off only to go broke trying to take on the expenses of maintaining a truck that should have been maintained by the company that they were working for.

Trucks are MONEY PITS, I know, that is why I gave you that preface above to try and give a little weight to my argument. Look if you are still dead set on trying the leasing thing, at least hold off for one year. Please don't start right out of the gate by leasing a truck. You don't have any experience and it is a recipe for disaster. You will know what I mean soon enough. I'm honestly trying to help you out - if you are set on doing it then please work for Celadon for one year and then give it a try. That way you will be much more familiar with how Celadon operates, and you will be much more efficient at your job also. As a rookie driver I don't see any way for you to know how to turn the miles and take the right loads that will make you successful as a lease operator.

Best of luck to ya!

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
Daniel B.'s Comment
member avatar

OS nailed it.

You really don't want to lease, especially as a rookie driver. I bet you that they made it sound so great to you, you'll make twice more money... Right?

They're trying to sell you their product. It benefits them and they're in business to make money.

It's hard to not go on a rant about this. It's insane how these companies are willing to bankrupt rookies.

I was in OR a few months back and had a super single pop on me. Well, I lost out on money that day. And guess how much the total bill came out to be? 1700$. That's not a typo! That would be coming out of your pocket not theirs (another reason they want you to lease). I wasn't happy about losing out on miles for that day but at the same time I was thrilled I wasn't stupid enough to lease that truck because that 1700$ would have made me bankrupt and go in the hole. I would have been working free for two paychecks.

It really is a bad idea. I know two personal friends of mine who were in your shoes and leased with Central Ref. Well, let's just say that they are still trying to recover from that.

How many drivers are out here? A lot! The average driver out here has years of experience. Sit back and think about this, what makes you think you could possibly compete with people who know the job inside and out versus a guy who is learning how to truly read an atlas for the first time?

Hopefully you'll listen. If not, you're doomed financially.

TWIC:

Transportation Worker Identification Credential

Truck drivers who regularly pick up from or deliver to the shipping ports will often be required to carry a TWIC card.

Your TWIC is a tamper-resistant biometric card which acts as both your identification in secure areas, as well as an indicator of you having passed the necessary security clearance. TWIC cards are valid for five years. The issuance of TWIC cards is overseen by the Transportation Security Administration and the Department of Homeland Security.

Richard V.'s Comment
member avatar

OS nailed it.

You really don't want to lease, especially as a rookie driver. I bet you that they made it sound so great to you, you'll make twice more money... Right?

They're trying to sell you their product. It benefits them and they're in business to make money.

It's hard to not go on a rant about this. It's insane how these companies are willing to bankrupt rookies.

I was in OR a few months back and had a super single pop on me. Well, I lost out on money that day. And guess how much the total bill came out to be? 1700$. That's not a typo! That would be coming out of your pocket not theirs (another reason they want you to lease). I wasn't happy about losing out on miles for that day but at the same time I was thrilled I wasn't stupid enough to lease that truck because that 1700$ would have made me bankrupt and go in the hole. I would have been working free for two paychecks.

It really is a bad idea. I know two personal friends of mine who were in your shoes and leased with Central Ref. Well, let's just say that they are still trying to recover from that.

How many drivers are out here? A lot! The average driver out here has years of experience. Sit back and think about this, what makes you think you could possibly compete with people who know the job inside and out versus a guy who is learning how to truly read an atlas for the first time?

Hopefully you'll listen. If not, you're doomed financially.

Wanted to touch back on this, im not a new driver i let my cdl go when i moved back to indiana due to lack of cash, i actually spoke to a gentleman that has been leasing from them for 4 years. He advised like i already planned is to put back money, now with my cost of living reduced(no house payment or car paymeng) all i have is food and cell bills. I have ran the numbers and im fine with the 500-600 a week. I know it can be lower. Nice fact is i have 6 grand in my savings that i have designated is backup repair costs. Plus my additional.05cpm maintenance escrow. Not to mention these trucks are new average miles on the trucks i looked at in their lot is 1000-1500 miles. The meaning of my post was to hear from current participants in their program, but i found what i needed from veteran participants.

CDL:

Commercial Driver's License (CDL)

A CDL is required to drive any of the following vehicles:

  • Any combination of vehicles with a gross combined weight rating (GCWR) of 26,001 or more pounds, providing the gross vehicle weight rating (GVWR) of the vehicle being towed is in excess of 10,000 pounds.
  • Any single vehicle with a GVWR of 26,001 or more pounds, or any such vehicle towing another not in excess of 10,000 pounds.
  • Any vehicle, regardless of size, designed to transport 16 or more persons, including the driver.
  • Any vehicle required by federal regulations to be placarded while transporting hazardous materials.

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

TWIC:

Transportation Worker Identification Credential

Truck drivers who regularly pick up from or deliver to the shipping ports will often be required to carry a TWIC card.

Your TWIC is a tamper-resistant biometric card which acts as both your identification in secure areas, as well as an indicator of you having passed the necessary security clearance. TWIC cards are valid for five years. The issuance of TWIC cards is overseen by the Transportation Security Administration and the Department of Homeland Security.

Old School's Comment
member avatar
Wanted to touch back on this, im not a new driver i let my cdl go when i moved back to indiana due to lack of cash, i actually spoke to a gentleman that has been leasing from them for 4 years. He advised like i already planned is to put back money

Richard, I'm not going to harp on what I already advised you, but do you not realize that what your fellow lessee just said was that you better be prepared ahead of time to be losing money? I understand business, and that it is a wise thing to be prepared for unexpected expenses, but you are preparing for losses that you are already expecting to have based on another lessee's experience. There is something about owning a big rig that is such an ego booster that people will throw all good sense right out of the window so that they can feel the rush of being an independent trucker. If you came by putting that six grand back through hard work and determination, I am very proud of you and know it wasn't easy in this economy. Do everything you can to hang on to it.

i found what i needed from veteran participants.

Richard, you found what you wanted, time well tell if it was really what you needed. I seriously wish you the best, but the trucking companies have this deck stacked in their favor, and that is the reason they have continued to pursue this strategy.

CDL:

Commercial Driver's License (CDL)

A CDL is required to drive any of the following vehicles:

  • Any combination of vehicles with a gross combined weight rating (GCWR) of 26,001 or more pounds, providing the gross vehicle weight rating (GVWR) of the vehicle being towed is in excess of 10,000 pounds.
  • Any single vehicle with a GVWR of 26,001 or more pounds, or any such vehicle towing another not in excess of 10,000 pounds.
  • Any vehicle, regardless of size, designed to transport 16 or more persons, including the driver.
  • Any vehicle required by federal regulations to be placarded while transporting hazardous materials.

OOS:

When a violation by either a driver or company is confirmed, an out-of-service order removes either the driver or the vehicle from the roadway until the violation is corrected.

Phil P.'s Comment
member avatar

Just one more example of leasing being a no no. Several years ago I was on my way back from a delivery in ohio and returning to the distribution center in Bedford PA . Another driver was running behind me on Rt 30 heading east, we were jawing on the CB he, was running as a company driver, and told me of his experiences on the road. One thing he mentioned was that he was a prisoner of war for 5 years. Knowing of his approximate age, I thought of Vietnam, but when I asked about that, he said no, that he meant the company he was leased to for 5 years. I will not name the name of the company as it has been a long time ago and it may be different now. He was now enjoying the less hectic life of a company driver, in fact, the reason he was on Rt 30 and not the interstate or turnpike, was to enjoy the scenery on the smaller roads. He regretted his leasing career.

double-quotes-start.png

Wanted to touch back on this, im not a new driver i let my cdl go when i moved back to indiana due to lack of cash, i actually spoke to a gentleman that has been leasing from them for 4 years. He advised like i already planned is to put back money

double-quotes-end.png

Richard, I'm not going to harp on what I already advised you, but do you not realize that what your fellow lessee just said was that you better be prepared ahead of time to be losing money? I understand business, and that it is a wise thing to be prepared for unexpected expenses, but you are preparing for losses that you are already expecting to have based on another lessee's experience. There is something about owning a big rig that is such an ego booster that people will throw all good sense right out of the window so that they can feel the rush of being an independent trucker. If you came by putting that six grand back through hard work and determination, I am very proud of you and know it wasn't easy in this economy. Do everything you can to hang on to it.

double-quotes-start.png

i found what i needed from veteran participants.

double-quotes-end.png

Richard, you found what you wanted, time well tell if it was really what you needed. I seriously wish you the best, but the trucking companies have this deck stacked in their favor, and that is the reason they have continued to pursue this strategy.

CDL:

Commercial Driver's License (CDL)

A CDL is required to drive any of the following vehicles:

  • Any combination of vehicles with a gross combined weight rating (GCWR) of 26,001 or more pounds, providing the gross vehicle weight rating (GVWR) of the vehicle being towed is in excess of 10,000 pounds.
  • Any single vehicle with a GVWR of 26,001 or more pounds, or any such vehicle towing another not in excess of 10,000 pounds.
  • Any vehicle, regardless of size, designed to transport 16 or more persons, including the driver.
  • Any vehicle required by federal regulations to be placarded while transporting hazardous materials.

Interstate:

Commercial trade, business, movement of goods or money, or transportation from one state to another, regulated by the Federal Department Of Transportation (DOT).

OWI:

Operating While Intoxicated

OOS:

When a violation by either a driver or company is confirmed, an out-of-service order removes either the driver or the vehicle from the roadway until the violation is corrected.

mountain girl's Comment
member avatar

I don't know of any, yet the trucking companies are doing exactly that when they try to get people to become independent truck owners through their leasing programs.

Trucks are MONEY PITS,

Real estate companies "eat their young" in very similar ways and again, realtors are small business owners. These traps are very appealing but hugely risky.

It's insane how these companies are willing to bankrupt rookies.

I would question the integrity of a company that pushes hard for new hires to lease. They know better than anyone how badly they're screwing their new guys over yet they're doing it anyway. Ugh.

-mountain girl

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