Prime lease = get out now?

One dude said the truck alone was little over a grand. I need to read no further. That's insane. And the dude will never own that truck. Guarantee he has some 50K or better balloon at the end. The whole thing is madness. If he teamed, he would make some money, but this is madness.

 

Even if the truck is $1100 insurance shouldn't be any more than $400 a week (that's a generous estimate). That means fuel cost would be $1100, unless they're also nailing drivers for all the northeast tolls on top of that, which could be a major reason right there.

You can make a profit with $1500 fixed costs. Problem is they are dispatching you so if they don't run you tough luck. Plus if the driver has to pay all tolls, especially in the northeast, it's a horrible situation because prime lives in the northeast

 

$400 / wk????????? LOL
I want to lease trucks and insurance to these guys.
Cargo, liability, B/T ( don't forget the B/T ), how bout plates? You know he's paying out the wazzoo for an APU as well. Qualcomm, God only knows what else. Lets move to the trailer now. Trailer fee? Refer fuel? Tolls? You know to be a big gun prime driver you need all the ez passes.
This is madness.
One dude said the guarantee him like $1.04 for 100K miles? Are you for real? That's the golden egg?
Have some Kool-Aid my son.

 

APU should be included in the truck payment. Qualcomm, plates, permits s/b included in the $400.

Trailer fee? If they charge a trailer fee that's a red flag right there, they're already taking 28%.

Reefer fuel? That's not a significant number (maybe $50-$75 a week).

Tolls are a big issue, especially if they're expecte to run all the bridges and tunnels in the northeast.

And that leads us to the $1.04/ mile figure. If that's what the driver is getting forget all the other numbers, that's a total disgrace. I wouldn't run for them any less than $1.60-$1.70 per mile (with surcharge) and at least $4500-$5000 gross per week.

Plus if I'm correct they don't even run a lease purchase, it's a straight lease. So you're paying all that money with no option to even buy the truck

 

There is a video by Onpoint Concepts on youtube. He shows his statement and If you fast forward to 30:20, I see his Revenue per mile is $1.19 for 52,935 miles. Yikes!!
Also note this particular statement is running with a student.

 

Oh I bet the insurances, plates, permits for one of those little gems with all their little gadgets is at least $400, plus the APU, and the little inside the cab goodies, accounting fee? Bet that trailer and, or the refer fuel is not free.
Using the OPs figures, quick math is $2500 / wk. break even. Madness. Mmmmmmm grape flavor is the best.

 

I found this tape of their lease op orientation.

 

This must have been orientation at a different location