Prime is terrible.

Thanks and I thought he was referring to my off beat, after the fact comments.

 

From Lone Mountain on a NEW Cascadia Evolution
Features>>

• Detroit DD15 505HP
• 13 Speed Manual or DT12
• 3.31 Rear Ratio
• Refrigerator
• Television
• Guage Package
• 4 year/500k Factory Warranty
• 2 Year/Unlimited Mile Towing/Roadside service

• No Miles
• 230" Wheel Base
• Raised Roof Double Bunk
• All Aluminum Wheels
• Air Slide 5th Wheel
• Carpeted Sleeper Area
• Premium Seats
• FET Included

Payment Options>>
$11,500 Down, $2,650/60 Months (13 Speed Manual)


-- that totals $170,500

let's see.... cheaper down, cheaper monthly (works out to $612 a week) but no APU, but they can add one I'm sure. Of course there are differences at tax time, you can not write off the whole truck payment, but you can write off the interest, and the deprecation. Plus if you want to go anywhere else, you can, without getting sucass leasing approval.

Somebody at Prime is making money off of more than just moving freight.

 

First of all the reason why I compared prime's lease purchase with loan mountains is because we have several which have little knowledge of prime and no experience with them that come and blast prime for the lease, and its undeserving(not referring to you here). So if I can compare prime's lease with loan mountains then I've proved to others that prime's lease purchase doesn't deserve the negative attention it gets. It wasn't my intention to say prime's lease is lease is better than loans mountains or vice versa. It wasn't my goal to offend anyone who's done a loan mountain lease, I'm sorry if I have. If you're in a loan mountain lease and its working for you then that's great I'm happy for you.

Prime lease purchase works like this. $15, 000 down $1075/wk for 3yrs vs loan mountain being 612/wk for 5/yrs. With prime at the end of the lease you own the truck there is no balloon payment($100). So the total cost of primes truck is $182, 800, vs loan mountain $170, 500 so a difference of $12, 300 - the apu $8, 500= loan mountain is $3, 800 less. However there are other differences in the trucks as to specs and options that need to be taken into account as well. Also you can take the truck elsewhere if you go though prime.

Primes truck includes somethings that I don't think loan mountains truck has a lane departure system, an on guard system (which some fleets are beginning to require to lease on) also includes an $8,500 apu, right weigh system. Also frieghtliner offers two DD15's and prime's truck will have DD15 evolution motor since load mountain doesn't mention what motor is in the truck so I'm guessing it maybe the previous gen DD15 SC that doesn't offer as good of fuel economy. Primes truck will also include Michelin energy super singles, this alone is probably a couple grand worth of an upgrade. Primes truck is already accepted by a fleet as is the driver the truck will come ready turn the key and take a load within the hour of signing the paperwork. There is no need to have to go find a job then get that job to prove to loan mountain that you have found a job and that will accept you and the truck into the fleet, or have to figure out how to get the truck tagged to get from loan mountain to the carrier, or any other hoopla to worry about. Primes truck comes dot inspected, tagged permitted, Qualcomm installed,apu installed, dot markings on it, ready to go, sit around and wait on all those shop appointments. That stuff takes time and it were to take even take a few days, it would cost thousands in lost revenue.

Now loan mountains truck is $11500 down and $2650 for 60 months that's $170, 500 total around $12000 less than prime but don't forget about all those upgrades and the $8, 500 apu. Now keep in mind if you were to go though loan mountain and get your own apu I don't think you're gonna find financing on it so you're gonna need that in cash, so is your down payment really lower then. Me personally I'm heavily against running emissions equipment without an apu, but everyone has their own opinions.

 

I am not blasting the Prime system, I do think it is one of the best ways a person can own a truck with the help of a trucking company. I do think they may be grabbing a few more handsful of money than they deserve though. They probably take the dealer markup on the sale, the interest during the lease and then their percentage while you partner with them. I'm sure that many people who have completed the ACE program and are now O/O would be nickel a milers @ J.B. Hunt now if not for the chance. I just do not see a big discount in the price or interest rates, especially when you take into account everyone getting on the ACE program has already completed one lease with Prime (A rent your own job lease.) The truckers getting an ACE lease have a track record and I would not consider a bad credit risk (even IF the are truckers.) Lone Mountain does not seem too many steps away from a payday advance company .

One question, are all drivers (company, L/O, O/O) rated and placed on boards together or are some load boards company boards only and some L/O or O/O only? Just wondering because if a L/O or O/O rejects a load, they go to the back of the line to prevent "cherry picking", is there anything to prevent the company from grabbing all the high paying loads?

 

I never said you were, I was referring to others on this.

If you bought though a dealership then leased the truck to a carrier, the dealership, would make a dealer markup on the truck, the finance company would make interest, and the carrier would make a percentage, maybe it makes you feel better to give your money to 3 people rather than one but you're still going to pay. So I don't see how this is any different, you're gonna pay interest, dealer fees, and a carrier a percentage regardless.

So since you would be both buying the truck though prime and leasing to prime you expect a discount? Well I'm sorry Gary but I think your expectations here are totally unreasonable. If a carrier is providing the services of a truck dealer then they should be paid for that, I wouldn't expect the carrier to provide me with a truck purchase at a discount because I'm leasing to them.

Wrong. Success leasing will tell you that they "like" to see a lease completed before an ACE lease is done. Of course since this is an open forum and others read this, I would never suggest that anyone do any kind of lease directly out of training. Its best to get some time under your belt as a company driver "learn the ropes" before assuming payment on a $150,000 vehicle.

Could you have made that point without insulting others that have gone that route?

Yes we are all on the same load board.

If an I/C rejects a load they are put back in line for another, yes that's to prevent cherry picking.

Yes there is, lease side fleet managers are on a bonus program, so if they get worse loads they make worse money as well. Thus if this happens they will take care of it.

 

I see a difference because I am cheap. I see a way to maybe save a few thousand off the price here, a percent of interest there, Maybe a higher paying load there. Of course doing one stop shopping makes it easier to check out and everything works well together most times.

On the other hand, since large trucks do not have a "sticker price" like new cars, and we do not know how much volume discount they get from the manufacturers. They could be raising the sales price beyond what a normal dealer would charge while keeping the sales overhead much lower. Fair profit, not a problem. But the possibility of higher than normal dealer profits is possible, in this case easy, with a "captive" sales audience.

Okay, I will take I am wrong on that. I had seen other post/blogs/statements, that they had to see someone complete a "walk-away" lease before you could start a lease/purchase lease. I could never get if that meant a complete 24 (or however long) month term or if finishing someones uncompleted contract would be enough. Although most drivers would have a hard time coming up with the 13K (or whatever it is now) down payment to start one without completion bonus, leftover reserves and emergency account funds. I understand about company driver first, although from what I have heard the company does not push it that hard, I was wondering if you had to "walk-away" before you could "drive-away"

Not meant to insult anyone at Prime, I had heard of other companies letting drivers out of training sit for weeks waiting for a company truck, "but you can lease this beauty and be on the road toady." More of a case where a person did not want to lease but felt forced into it. A walk away lease is fine for someone that wants to use the truck to make money, turn it in under warranty and start over without having to ever worry about big repair bills. If you want to keep rolling with the least down time it is probably the best way unless you go company.

Okay, being on the same load boards makes it more fair to lease operators, the company is not as inclined to send good paying loads to a company board and garbage loads to a lease board.

 

What happens if you get sick or something and can't work anymore? Do they give you the fifteen grand back? Are you sure you can take their truck elsewhere as long as you keep making the thousand dollar weekly payments?

 

@redoctober83, can you take the truck elsewhere?

 

The same thing that happens if you finance anything anywhere else be it a truck, a car, a house, a motorcycle, a boat whatever. I don't see how the standards here are any different towards nonpayment than they are anywhere else. Now Prime will work with you to an extent and within reason.

I've never felt like prime would have bent me over to save themselves some money by not doing the right thing if given the opportunity. They've had opportunities but they took care of me. That said if you're going into business you need a business reserve, you need enough money set aside that you can pay business and personal bills, or repair bills if you miss some work due to a family emergency, a breakdown, or whatever reason. If you don't have a reserve you shouldn't be going into business.