Celadon Lease Purchase Info

ironpony

Professional Pot-Stirrer
Supporter
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.
You don't understand how this works. Always use your fuel card at in-network locations... you want Celedons corporate discount on fuel. Do you pay IFTA tax, or does Celedon cover that for you? Or did you even bother reading your lease before you signed the infernal thing?
 

Drifter McDuck

Well-Known Member
But I don't get celadon's discount.... Celadon charges me the pump price, plus a $3 fee for using their card, and they pocket the 50 cpg discount. IFTA is handled by them....
 

Drifter McDuck

Well-Known Member
So if I purchase 100 gallons at pilot, say at $2.50 a gallon, celadon charges me $253 ($250 plus $3 fee). But they only pay pilot $200, because of their discount.
 

ironpony

Professional Pot-Stirrer
Supporter
Well, you're getting screwed on the discount, but they can do that. Its contract law, and the deal Celadon offers is what it is. They'll win on appeal, however crappy that sounds. However, you can still get some savings BECAUSE you pay the tax.

IFTA tax doesn't work like state gasoline taxes. With gas tax everything that goes into the kitty gets sucked into the governments account, and that's the end of it. IFTA uses a formula based on miles run in each state, gallons purchased and fuel economy to arrive at the amount you owe to each state you run in... paid quarterly. The tax is collected at the pump, and is held in escrow for you... so there's a bucket of money with your name on it used to pay your tax bill in each state. Now IFTA is different because YOU only pay what YOU owe based on the formula. If IFTA doesn't collect enough at the pump, you'll get a bill... but if they collect too much YOU GET A REFUND.

So there's a game we can play to your financial advantage, because you're only going to pay the tax you owe,.. and not everything that is collected goes to the government. When you buy fuel, ignore the tax.

Pump price - tax = base price.

The base price of fuel is what's important to you because you ultimately pay the IFTA tax, and only what you owe. Truck stop chains being the commercial hoes that they are try to take advantage of this too. In Indiana the IFTA tax rate is 16 cents per gallon, and in Illinois its 42.7 cents per gallon. Truck stops price their fuel to be competitively viable with their neighbors... in other words, the guys in Gary don't want to be that much different than those in Effingham at their advertised pump price. In fact the guys in Gary usually are a little cheaper at the pump than the guys in Effingham to lure you into buying fuel incorrectly - because they can make more money off of you. Remember that little spiel about base price? That's the price you pay for the fuel. Pump price is what you pay for fuel, and to fund your personal IFTA tax escrow.

You can save some money here by playing off fuel stops across state lines, and buying your fuel in high tax states to get a lower base price per gallon. For example, this morning at the TA in Gary and Effingham you'd pay the following:

(pump$ - tax$ = base$)

Gary:
$2.199 - $0.16 = $2.039 per gal.

Effingham
$2.219 - $0.427 = $1.792 per gal.

While it appears you'd pay 3 cents per gallon more in Effingham at the pump, you're really saving a whopping 24.7 cents per gallon ($2.039 - $1.792) by fueling in Effingham. That extra tax money goes to your account, and you'll get a refund if you pay too much. So the smart business owner likes high tax states, because the truck stop hoes in their scramble to screw the next guy are really doing you a favor.

So add fuel planning to your trips. Use whatever app you like to check diesel prices within a couple of miles if your route. Subtract off the state fuel tax to get the base price, and only buy a full tank at the cheapest base price locations in route. If you don't have quite enough fuel to get to the next cheap location, get 50 gallons at the best price you can to tide you over and get a shower credit.

24.7 cents doesn't seem like a whole lot? Let's say over the course of a year, you average 12 cents per gallon savings buying your fuel this way, and you buy on the average 400 gallons per week...

$0.12 x 400 gal x 52 weeks = $2,496.00

Every year. In your pocket. :)
 
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ironpony

Professional Pot-Stirrer
Supporter
By the way... since you don't get a corporate discount, keep an eye on the pump prices at Mom 'n Pop truck stops. If you have the cash to pay for your fuel instead of charging it back to Celedon, you can save some more by buying your fuel at the little places.
 

Drifter McDuck

Well-Known Member
After absorbing all the info on IFTA, I've crafted an effective strategy. I'm going to fuel mostly in NY, only on those Indian reservation truck stops, $300 at a time as I need it. I'm going to jump the border and drive circles around Toronto until I need more fuel. I'm going to file my quarterlies using @mndriver's DOT number and @Skateboard's address. I'm going to keep them distracted from my little rise by posting factually inaccurate threads everyday so they can fight it out with @Tazz and @ironpony. Then I'll use the tax savings to buy a round of beers for @Duck and @Southern Fried in Wyoming, because it has the cheapest alcohol tax. By saving an average of 5 CPD (cents per drink), I can offset @mndriver's NY fuel tax. THEN, I'm going to write off the cost of the beers as a business expense. Who's sounding like a business-man now?
 

Blood

Driveler Emeritus
Supporter
After absorbing all the info on IFTA, I've crafted an effective strategy. I'm going to fuel mostly in NY, only on those Indian reservation truck stops, $300 at a time as I need it. I'm going to jump the border and drive circles around Toronto until I need more fuel. I'm going to file my quarterlies using @mndriver's DOT number and @Skateboard's address. I'm going to keep them distracted from my little rise by posting factually inaccurate threads everyday so they can fight it out with @Tazz and @ironpony. Then I'll use the tax savings to buy a round of beers for @Duck and @Southern Fried in Wyoming, because it has the cheapest alcohol tax. By saving an average of 5 CPD (cents per drink), I can offset @mndriver's NY fuel tax. THEN, I'm going to write off the cost of the beers as a business expense. Who's sounding like a business-man now?
:bowdown:

:D
 
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