Lease startup costs

callmerookie1mogen · Aug 6, 2014

Hello.

I have a question for Prime lease operators. When I go upgrade;
can I order a new truck or have to pick one from the lot?
If I can order, how long does it take to arrive?
How much can I expect to pay in startup costs? (Equipment like chains, locks, etc)
Do I pay up front for it all?
How much do you recommend having in savings before starting up?
And finally, any advice for someone about to begin there first lease with Prime?

nofreetime · Aug 6, 2014

callmerookie1mogen said: ↑

Hello.

I have a question for Prime lease operators. When I go upgrade;
can I order a new truck or have to pick one from the lot?
If I can order, how long does it take to arrive?
How much can I expect to pay in startup costs? (Equipment like chains, locks, etc)
Do I pay up front for it all?
How much do you recommend having in savings before starting up?
And finally, any advice for someone about to begin there first lease with Prime?
Click to expand...

You want to start up a business and your asking if you have to have money up front to pay for chains? If it were me i would have no less than $5,000 in reserve but ive spoken with others that recommend $3,000. Your profile says youre new driver. Look i know you may want this badly but everything about your level of experience and your questions says that you arent ready. Dont rush this. Why not go company for awhile and learn the business 1st while you come up with a cash reserve? Ive been a company driver here for 3 yrs my salary was in the lower 60's last year and is on pace to be in the upper 60's his year. I would be glad to answer any of your questions about the company side.

White Dog · Aug 6, 2014

Ive been a company driver here for 3 yrs my salary was in the lower 60's last year and is on pace to be in the upper 60's his year.
Click to expand...

But to the OP...before you get your hopes up that this salary is the "norm"...please note the screen name of the poster that posted it.

BrenYoda883 · Aug 6, 2014

I have to agree with NoFreeTime.... there is a lot you can and need to learn to be a successful O/O or Lease operator. . You can utilize your time as a company driver to learn about the business... learn to run effeciently. .. getting the best fuel mileage, taking care of your truck to save on repairs and maintenance cost.... you can also set aside money each week so you have a good cash reserve for when you are ready...

I understand how appealing it looks.... and I too hope one day to be an O/O.... one of the things I am doing to prepare myself is I keep meticulous records and run a mock book... I have a book where I keep all records as if I was an O/O.. I use the loads and miles I run as a company driver and plug that info into my mock O/O book... I can see how much I wojld make as an O/O vs a company driver... but I also see how much it cost to be an O/O vs a company driver... when I take my tru k in for service I ask them how much it would cost if I was an O/O... AND, that is an eye opener... I usually put in about $250 to $300 a day in fuel... as a company driver.. no big deal... as an O/O.. ouch..

After about 6 months... I am making more as a company driver... but, part of that is my being a new driver.. I am now geting better fuel milage than I did in the first months... I definitely put the hussle on soI can get that 2nd load... or be the first truck in so I do t waste time and money waiting around.... I know I still have more to learn before I am ready, and it is clear I need to stash away more money because one trip into the shop can be quite the sucker punch to the wallet...

So.. dont be in too big a hurry... learn on the companies dime and time...

callmerookie1mogen · Aug 6, 2014

I understand what you guys are saying. And I appreciate that you want help me. I have been with a lease op learning what he knows since January. He came to Prime same as me, no knowledge of the trucking world, only I researched a long time before signing with Prime. He trained for about a year or more because he was scared to go out on his own, until his trainer basically forced him off the truck cause he wanted to bring on a family member to train. After watching this guy for months, I have come to the conclusion that he is a fairly incompetent individual. He is a rookie and should have gotten years of experience before he even thought about training. I mean if this guy can can complete a lease, then everyone can do it if you are willing to put the time and the work in. I understand that what keeps some of the more incompetent rookies who start off leasing from drowning, is the fact that they can certify as "trainers" and use us unsuspecting trainees as cheap labor to help them with their truck payment. Needless to say they do very well for themselves when they are doubling their miles and gettin all the profit while us as trainees get .12 cents a mile out of their check. He swears up and down he does it to "give back" and paints himself as a saint. I just laugh because I'm not an idiot. While on his truck I have been doing research and learning all I can about the business end of it, and trying to learn about fuel and such. I am confident that whatever obstacles I encounter I will overcome with as much grace and patience as I can. I am not delusional, I know it will not be an easy task. This bit of winter I caught was not fun and I dont look forward to another. I don't do not plan to train, that would not be fair to the newcomers of this trade unless I become experienced. I plan to bring my uncle on to the lease as my teammate and together we will make the lease work for us. He is with Covenant at the moment but he will come over to Prime once I am ready and have the truck. Once again, I appreciate the help. And if anyone who leases with Prime remembers how much it was to get chains load locks aircuff and all that list of stuffs they make you get please give me an estimate. Thanks guys !

rgomez191 · Aug 6, 2014

I may be wrong but don't you need some capital to get started on a lease with Prime?

You Must Be a Prime Certified
Driver to Qualify.
New Truck OptionTerms and Features
1. Walk away option at the end of the term
2. Lease term can be either 3 or 4 years
3. Eligible for breakdown pay under the OEM warranty
4. Loaner truck program-reduced rate based on availability
5. Optional emergency fund
6. Purchase option amortizes weekly with lease payments
7. Repair and tire replacement reserve of 1 cent per authorized dispatch mile (unused portion refunded
at the end of the lease purchase agreement)
8. The purchase option balloon payment can be up to 25% at the end of the three year term and up to
20% on a four year term of the purchase price.
9. Ability to finance a new or used APU in purchase price of truck to consolidate to one low weekly payment.
The program contains an excess mileage charge based on the miles the operator is averaging above 2900 miles per week. This charge will be refunded to the operator if the truck is purchased within the terms of the lease purchase agreement.
Down Payment
$13,000 down payment
Lease purchasers have the ability to lower the down payment based on certain criteria with a minimum down payment of $5,000. An additional $1,000 down payment is required for any financed APU. $1,000 will be due at the time of order with the remainder being due at the signing of the lease purchase agreement.
Please contact leasing for details on a lower down payment.

Used Truck Option
Terms and Features
1. Walk away option at the end of the term
2. Lease term of two years maximum
3. Eligible for breakdown pay under the OEM warranty
4. Loaner truck program-reduced rate based on availability
5. Optional emergency fund
6. Purchase option amortizes weekly with lease payments
7. Repair and tire replacement reserve of 7 cents per mile (unused portion refunded at end of lease purchase agreement)
8. Ability to finance used or new APU in purchase price of truck to consolidate to one low weekly payment.
The program contains an excess mileage charge based on the miles the operator is averaging above 2900 miles per week. This charge will be refunded to the operator if the truck is purchased within the terms of the lease purchase agreement.
Down Payment
$13,000 down payment
Lease purchasers have the ability to lower the down payment based on certain criteria with a minimum down payment of $5,000. An additional $1,000 down payment is required for any financed APU. $1,000 will be due at the time of order with the remainder being due at the signing of the lease purchase agreement.
Click to expand...

callmerookie1mogen · Aug 6, 2014

rgomez191 said: ↑

I may be wrong but don't you need some capital to get started on a lease with Prime?
Click to expand...

You need a down payment if you are doing a lease purchase, yes. I am not doing lease purchase.

nofreetime · Aug 6, 2014

Wow ben yoda have to say im impressed. We dont usually hear from those who go threw the effort of keeping a mock book im preparation for becoming an o/o. Tell me are you with prime now? If so will you be leasing on with prime? What division?

nofreetime · Aug 6, 2014

callmerookie1mogen said: ↑

I understand what you guys are saying. And I appreciate that you want help me. I have been with a lease op learning what he knows since January. He came to Prime same as me, no knowledge of the trucking world, only I researched a long time before signing with Prime. He trained for about a year or more because he was scared to go out on his own, until his trainer basically forced him off the truck cause he wanted to bring on a family member to train. After watching this guy for months, I have come to the conclusion that he is a fairly incompetent individual. He is a rookie and should have gotten years of experience before he even thought about training. I mean if this guy can can complete a lease, then everyone can do it if you are willing to put the time and the work in. I understand that what keeps some of the more incompetent rookies who start off leasing from drowning, is the fact that they can certify as "trainers" and use us unsuspecting trainees as cheap labor to help them with their truck payment. Needless to say they do very well for themselves when they are doubling their miles and gettin all the profit while us as trainees get .12 cents a mile out of their check. He swears up and down he does it to "give back" and paints himself as a saint. I just laugh because I'm not an idiot. While on his truck I have been doing research and learning all I can about the business end of it, and trying to learn about fuel and such. I am confident that whatever obstacles I encounter I will overcome with as much grace and patience as I can. I am not delusional, I know it will not be an easy task. This bit of winter I caught was not fun and I dont look forward to another. I don't do not plan to train, that would not be fair to the newcomers of this trade unless I become experienced. I plan to bring my uncle on to the lease as my teammate and together we will make the lease work for us. He is with Covenant at the moment but he will come over to Prime once I am ready and have the truck. Once again, I appreciate the help. And if anyone who leases with Prime remembers how much it was to get chains load locks aircuff and all that list of stuffs they make you get please give me an estimate. Thanks guys !
Click to expand...

Why have you been on that trainers truck since January? I dont understand you must be getting something from this situation but what could this guy possibly have to offer you at this point? Youre making $600 a week right, you should be making $1000 if you were solo on the company side. Look everyone has confidence that they can do well but confidence just aint as good as money. I hope youve got some money put away to gwt you though the hard times. Do you?

BrenYoda883 · Aug 6, 2014

No I am not with Prime... and thanks... I have a lot to lose so I invest my time and money wisely. .. I also have a brother who is a corporate lender and has a business degree... he was the one that suggested I do the mock book keeping.. the keh to success is a good business plan and for that you need a good understanding of things...

One thing my brother said after looking at a couple of the lease purchase programs out there... is that it is a win win for the company... and while a driver can do kt.. it isnt the best path... he said said it would be better to be a company driver and save money in an I terest earning account, keep your credit score good.. and when you can put down a sizable down payment and still have a fair amou t in savings for working capital.. go to a dealership and buy your truck through them...

CalmRookie... I really cannot grasp your logic... because you were trained by someone who was incompetent and are under the assumption he is managing.. you think you that means you should go for it.... sorry but that is just crazy and makesa stronger case for why you shouldn't. ..

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