Prime's lease deal. The math gets done.

You're on the wrong thread for "these" companies... it's pretty irresponsible to make broad sweeping statements indicting all companies on a thread like this one concerning one company in particular.

Leasing isn't for everyone, or even most. What I've seen on these forum pages are a host of people who step into a lease thinking its some kind of employment contract with a paycheck-on-steroids at the end of the day. That ain't the case - its a business deal, and should be treated that way. If you walk into orientation without considering a lease in detail before you get there, you're asking for trouble.

It all depends on what you are getting for your money. For example Ryder trucks are specified for intra-city use. The rear-end ratios will kill your fuel mileage in a OTR, heavy-reefer operation like Prime's. That doesn't do anything for an operators bottom line. The lease payment at Prime is based on a three-year amortization of the cost of the truck - its a little lower at say JCT which uses a 5-year schedule. That being said, Primes lease is a "flat rate" - it never changes from week-to-week.

You go on to say something about "inflated mileage payments" touting someone's payment (ya didn't get specific here) - Success Leasing charges you 4.5 cpm on miles below 2400, rising to 7.0 cpm for all miles over 2400 - which is quite a bit less than 14 cpm.

The biggest reason that Prime and Success Leasing went with the 3-year schedule of payments is to insure that the tractor remains under warranty during the lease term. As long as the operator doesn't misuse the equipment, the engine and driveline are covered. The operator pays for "wear and tear" times like windshield wipers, light bulbs, etc. You also are responsible for tires.

I don't see what your beef with Prime and Success Leasing is here. Yup, the operator is "responsible" for getting things fixed at Prime - but so is anyone driving a CMV. If you ignore the condition of a company truck long enough, the overall effect is that you're driving a broken-down POS that is going to get shutdown by DOT. If a lease-operator takes care of the equipment, gives the tires the care they need, with some luck you can make out pretty well at Prime. There is an advantage to the operator in this too... if you are responsible for maintenance decisions it means that you don't have to go belly-crawling to the company you're leased-onto for the chits to get things fixed. In the new world of CSA2010, enough little things is going to add up to no one allowing you to drive for them.

Dang! That sounds like Prime! Part of the lease via Success Leasing is a clause that puts the leasing company (a separate business entity from Prime Inc.) on the hook to provide a "loaner" during extended downtime periods. You didn't mention if your favorite leasing company provides breakdown pay - its $175 per day after the first 24-hours at Prime. Basically that will cover your fixed costs, and is the way that the lease counterbalances the "loaner" provision - which is subject to the availability of a truck.

If you are going to biotch about truck leases at "these" companies, why don't you go do it on a CRE or Swift thread - those guys REALLY get it stuck to them with the deficated-on end of the stick? Before you go calling me a "cheerleader" or tell me I'm "drinking kool-aid" - let me say that I'm just posting what I read in a copy of the lease via Success Leasing - if you're going to paint "all companies" with the "they ain't no good" brush, and then apply that to Prime in particular, you should at least do your homework. Give em' a call and ask for a copy of the lease - at least this outfit doesn't have anything to hide like others - try that with say Covenant or CRE.

Well said. Leasing is a big risk - there's no denying that, and I think many don't take that into consideration before inking the contract. The revenue has to be there to support all the costs, including the costs of the employee aka "the driver," the consequences of the driver's lead-foot (or not,) and the so-called "freedom" aka sluffing at the house which doesn't bring in the cash needed to pay for the truck. If it doesn't add up, its not going to work - that doesn't matter if you lease a truck from say Ryder and find your own freight, or pick on one of the big OTR companies and use their resources to generate revenue.

 

At the end of the Contract the "TRUCK IS ALL YOURS"

 

Man I hate people who justify GREED

 

I assume that snide little comment is directed at me.

I'm not justifying "greed." There's plenty of folks making money at Prime - Sazook is one of them.

What gets my goat are the a-holes who without any research or justification trash a system that can be very lucrative to someone who knows how to run a business. It's not for everybody - and if you want to talk about greed... go look at CRE, Covenant, Swift, etc.

 

here is a news flash for those who were not aware: 99.9999999999999% of lease to own deals through a company are going to screw one person the driver. in other words....dont do them!!

 

We're not talking "lease to own." And I agree 99% are a fleace. This is a business opportunity we're talking about here - and there are way too many people actually making money at Prime for it to be some kind of greedy deal to screw drivers...

 

Dang! That sounds like Prime! Part of the lease via Success Leasing is a clause that puts the leasing company (a separate business entity from Prime Inc.) on the hook to provide a "loaner" during extended downtime periods. You didn't mention if your favorite leasing company provides breakdown pay - its $175 per day after the first 24-hours at Prime. Basically that will cover your fixed costs, and is the way that the lease counterbalances the "loaner" provision - which is subject to the availability of a truck success leasing is owned by prime. that is why they are located at the millennium bldg. Like perryman and ###.A legite leasing company as you say a separate business entity would do business with other companies and not just the 1 (prime).Robert low is a disgusting human being the flourishes his wealth off the work of others. like a slave master.The $175 a day is not good, because you still have the truck payment,your fixed expensives and anything else that comes in while broke down. Oh, don't forget that you still have to eat and other bills at home to pay. Just like my dispatcher Jack Vauter put on the qual-com to me. "don't get mad at me because you can't pay your bill." That's the kind of a-holes you deal with.Ever notice that everyone that works at headquaters are all friends or related.After being broke down in Rawlins,wy for 9 days i was in the hole about $1,500.00 and no loaner truck.Was not taken out of my check a little at a time either. And then stuck in a blizzard in Iowa for 4 days waiting for the back roads to a dairy farm to be cleared.On top of that they called me and told me i was going to class to be a C.D.L instructor. had to shut the truck down for a week (still have to make payment),and did not tell me this but charged me $500 to go thru the class.Wheres the lubrication. then they did not pay me the instructor pay and when i brought the student in for testing,you guessed it another screwing. truck down another week and was told that i could not be on the pad while the student tests on. that was the last straw, student passed and i didn't get paid for all the extra work. Now i told the world. enter at your own risk. I hope one day rob low will get the screwing he gave so many drivers back 10 times.

 

And making good money at that!

It's not Primes fault if you don't look at the weather forecast before you accept a load. If you had looked and seen the forecast before leaving for Iowa, you could have refused the load because of it. I've done it before, and I had a different load within 30 minutes.

BS. I've taken the instructor class twice. Once for the old version of the MO CDL test and once for the new. Each time they paid my lease payment for the week, and set it up in $10 payments per week till that week was paid off, and the class didn't cost anything.

I'll call BS on this too.
A. If you were down a week when you came into test you hadn't taught your student what they needed to know out on the road. I'm in the yard for 3-4 days for a testout.

B. It's a REQUIREMENT that you be on the pad with your student on test day, because you're the one that has to move the truck on the pad between tests. Also, when the testing is done, you have to take the student to the DMV to make sure all is good with his license.

 

Well I have to throw my 2 cents in here.. Im still training but I do believe I will do a lease when I am finished...

Yes primes leases are a little higher than many but look at the fact that unlike most with a lease at prime you are paid percentage not a crappy 90-95 cent a mile....that 95 cent is the minimum prime guarantees you will make. I have taken loads that paid over 3.00 with my trainer and some that paid .95 but sometimes you have to take crap to get you out of an area to get to higher freight areas.

just had to say that since n hadnt seen it said yet