Thinkin about Prime Inc.

Dumb question (hey now).... If Prime's lease is not one of those lease-purchase deals (where you are actually paying money on the truck) but straight up lease, what difference does it make if you lease/rent the truck for 2 years or 10 years or what? I don't get it

 

There is a lease/purchase plan, where you end up with a new truck after three years. On the reefer side, three years is the longest lease you can get - Prime turns the trucks in at that point, and gets a new one. There are short term leases available on older trucks (below the three year point) - the difference is in a lower lease payment.

 

Are you saying Prime has a true lease purchase plan? I was led to believe they didn't!

 

We do. That being said, it's probably not a good time to get into a lease deal considering the level of freight rates. Team freight is okay, solo is difficult, but doable - if you know how to minimize your fixed costs. If you're just breaking into the biz, you'd be well advised to stay on the company side of wherever you land until you get this figured out.

 

I completely understand that everything you say here is true, but after driving for Swift I'd rather stick my head in a toilet and drown myself than drive as a company driver for one of the big companies. The reasons are too complicated to get into, but that's where I stand. I don't care if I clear $20 a week! Thanks, though, and I realize you're basically right.

 

It all depends on what you're looking for... if you have bills and a family, it's gonna be real tough. If it's just you, then that's another situation entirely. It's not impossible to do well as a solo lease operator at Prime, but the economy has made it difficult. You need to be a good businessman. To that end, Prime does assist us in getting there through their business development class - they take a month of settlements, go through them with you to find areas to improve your business. Bottom linesville these days is you have to be really careful with your cashflow, and understand that net revenue to the truck is not a paycheck... its cashflow into your business, and your salary is an expense to be paid out of that cashflow along with maintenance, tires, lumpers, fuel... etc., etc.

 

I'll keep all this in mind. Thanks for the advice.

 

One of the things we are planning to do this time around is have a separate account where Prime deposits my settlement each week, and draw a salary out of it into our primary account. First time around I was brand new in trucking. I went through Prime's training, so I at least had an introduction to things. But I didn't even understand the fuel surcharge then! This time around (six years later) we know a bit more about the BUSINESS. The biggest reason I have seen with drivers who complain about running the lease is that they run like a company driver and don't keep in mind the things you have said here. Two things made me decide to do a lease again with Prime. The biggest one is flexibility. I am ready to be in charge. NO FORCED DISPATCH. That is a BIG one for me, after running midwest to northeast for three years! The other thing is the lease completion bonus.
I got the final "thumbs up" from recruiting today and will be in Springfield Monday morning!

 

Unfortunately I am stuck here right now as Prime currently has a hiring freeze in the west for student drivers...I wasn't planning on going out until Sept or Oct anyway so it might work to my favor. I'm gonna send in an app anyway to at least get my name out there. Congratz KingsSon, keep us updated =)