My experience in Prime's lease program so far.

Crocky said:
“Due to the costs of the lease, I'm using my lease as a bridge to buy a truck outside of Prime then most likely put it on their fleet with out having to pay so much. My plan is to buy a $30-50k truck and put it on the fleet. This will allow me to both put more money in mypocket but also make more money”

Reply:
Crocky - I think there are some serious errors in your plan. Generally a $30-50k truck can be a money pit, big repairs (engine / tranny) can eat up your reserves in a heartbeat. I don’t think you’ll find a blue sky situation, making payments and being totally responsible for all of the costs to run a used truck.

Some have made it, but many have walked away with a ruined credit rating, and a bank or finance company chasing them to collect all the money due from the purchase agreement. The only option to stay in the trucking business after a crash and burn, will be employment as a company driver.

But there are options, that aren’t a lease purchase, or a half used up truck.

A full maintenance lease, would protect you against catastrophic failures. Won’t be an inexpensive option, but worth your time to search for one, getting hard numbers.

Next option is buying a new truck, with extended warranties. Again not cheap, but you will have a better idea of your fixed costs. I’ve seen some very sound reasons to go this way. You’ll have to avoid taking cheap loads. Another thing is why would you ever want to stay with Prime? They haven’t treated you that well, I’d be looking for a greener pastures. Whoever you go with, you must have the option to book your own freight, and not be reliant on a mega.

If your credit isn’t strong, now is the time to work on fixing it. Bad credit will never put you in a strong bargaining position.

And your numbers showing 52 weeks of income a year is not realistic. Just not possible in the long run. A major truck repair could easily take you off the road for 2 or 3 weeks.

If your savings goal is to buy a truck, without having $20-30k as a reserve, that’s an invitation for trouble, especially with a $30-50k truck. And not taking some time off is a recipe for burnout. So make sure all of your plans are realistic.

Their are some excellent company driver positions out there, no worries about the truck, just write up a ticket when things go wrong. Some pay equal or better of what you’re currently earning, with no financial risk. Might be local or line haul, or regional. Maybe a good next step after you end your walk away lease.

The time you take to do your research, it is an investment in yourself. Do it now, but take your time. Before you sign anything get some legal advice, and not at a lunch counter at a truck stop. Even though you’ll be surrounded by experts.

Don’t resent Prime for selling used, used, used trucks for $60k, lease purchase is a moneymaker for them. Fact of life. All the megas do the same! Another reason to find a different company.

 

I for one applaud you're efforts. And do think you can make you're plan work. I for one don't know of any first year cdl holders making 60-65 grand. However I see a few flaws that I want to help you with.
1. Have heard, and read Prime only allows 6 year old tractors or less to run in their fleet.
2. A 30-50 grand truck is how many owner operators got started including me. The difference is I and many others had an emergency truck fund of 10-30 grand because if you're engine fails the dream ends if you can't cover it.
I wish you good luck, hope you make it, and continue to update everyone on you're progress.

 

When you factor in benefits and taxes it's much closer than you think.

 

First time your truck goes in for repair post up a pay stub...

 

Join a credit union. I’ve heard loan requirements are lower, than a bank.
And don’t forget truck manufacturers financing, at times companies will offer very competitive rates to move their inventory. All of the major brands have a finance operation. Avoid dealer financing, they may get you approved, but at a much higher interest rate. And watch out for used truck dealers, that are nothing but financing companies, at high rates, with meaningless warranties.