Prime lease vs other companies?

There are some things I understand about this, some things I don't. I guess I don't really understand what things you pay for and what things they do. Like if your truck just mysteriously breaks down 3 weeks into your lease, are you screwed?

From what I've heard, most companies have some kind of escrow thing where you pay 10 cents a mile or something for repairs ... does this mean that whenever you have mechanical problems it comes out of this fund, or do you just have to come up with the cash? This stuff is confusing for me because it seems to very so much from company to company and I can't remember what was what with who.

 

Prime's lease trucks are all under warranty, so as long as it's not something that you damaged, or a "consumable," it should be paid for by the warranty. That doesn't mean that you don't "pay" something - the wheels aren't turning, you aren't earning, and the lease payment is due no matter what may come.

Alignments will come out of your pocket. They maintain a tire fund in escrow for you. So it pays to pay attention to your tires - big ticket item there. Also, if you damage a trailer, you pay - pre-hook inspections are very important.

Insurance is part of the lease payment at Prime. You pay for permits, FHUT, state fuel tax, tolls (reimbursed 28% by Prime), scale tickets, etc.

 

Thanks a lot!

 

Pony you have put into words all I have learned in the last six years since my first lease with Prime. I got my CDL with Prime's training program, did the obligatory team driving for 3 months, then got my own lease. It was not a disaster, but it was no great success either. I had no idea what I was doing. I didn't even understand fuel surcharge! I am taking so much more into this new least next week. I took some time in the last few years to learn the BUSINESS side of trucking, and I am looking forward to practicing what I have learned! I spent the last three years in a small company, the president of which was a wizened truck driver himself. I learned a lot just sitting and listening to him talk about the business.
Looking forward to Springfield on Monday! That Millenium Building is awesome!

 

Here's the deal: Industry wide... freight rates are really depressed right now. MY numbers from my company truck show that as a SOLO, I'd be hard pressed to break even on a new truck lease, minimal profit on something in the range of a 6 to 12-month short-term lease. When I was first running on a mixed lease/company board, I got into a good relationship with my FM - still talk to him on a regular basis. Solo freight for lease ops is a mixed bag yet. Teams are doing well. As a solo company driver, I'm doing well.

Bottom line from Primeland is that if you're going to get into a new truck lease, you'll need to team or train, or you are single with no bills to foot other than your business.

 

Exactly why I will be taking one of the old leases and finishing it up. No intention of getting a new lease. I've talked to those guys on the road!

 

I just took over a lease last week. Lease payment is $711, which puts my fixed costs around $850 (still waiting to see the first settlement). Fixed costs include lease, insurance, permits, etc.

 

Leasing is NEVER a good option...it works sometimes, but even then you're getting screwed in the end.

 

Have a suggestion for you. Drive for the company for 6 months. Keep track of the truck expenses as if you owned the truck . You can find out how much your fixed expenses are. Uses your settlement to figure mt miles lded miles etc. Actually I am no fan of a lease purchase BUT I also understand that it may be the only option for some people to own their own truck and THAT I am a fan of if you understand how it works. It's really not rocket science but some experience and some common sense, a good accountant who understands trucking and patience will pay handsome dividends. I know people give Prime a hard time on this forum, but I also Prime know has some very successful lease operators that make a darn good living with Prime. GOOD LUCK TO YOU!!