Leasing!

Topic 25713 | Page 1

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Donna M.'s Comment
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When I came to prime I didn’t take the leasing classes. I was more concerned with learning to drive a semi, the road , my clock and thousand more things that one needs to know to survive out here. I knew I did not have the knowledge to operate a trucking business. What I have learned about leasing has all come from Rainy and of course she is company. However I have all the prime Facebook pages and boy do I learn some stuff there!!! They whin there isn’t enough feight, too long on appointments, not enough money, and the latest “I had to sit cause of the holiday. I dropped this morning in Fort Worth and I’m sitting 13 miles from my Houston drop for tomorrow which I have exact four hours left on my 70 to drop with. I will have 3,365 miles for the week and this is my third week of over 3,000. Everyone comes to trucking to make money and should think when leasing. That first 800$ to 900$ a week that u makes goes for that truck payment. One girl stated her paycheck after payment was 37$. That won’t buy a decent meal out here.

PJ's Comment
member avatar

The companies leasing make it sound wonderful. I call it selling the shiny side. The only one making money on those deals are the company. Some are better than others, but in the end it works out the same. The company gets all their money and control the freight. They don’t worry if the driver makes anything as long as those payments are covered.

My girlfriend recently started driving and her company actually made a lengthy presentation on the leasing program during orientation to brand new drivers. Her trainer was a L/O and didn’t allow her any backing practice because it was his fuel not the companies. She claims she has learned far more from me than at her own company and their training. She got ahold of a copy of their lease and Actual numbers. I showed her on a calculator how it would all break out. Basically the first 2000 miles a week went to cover the fixed costs and fuel. She was very suprised as how things really would be. Numbers don’t lie or misrepresent, however people do. Some of her classmates leased and within a month are crying about the situation. The contract does say they can walk away and return to a company driver with no penalty. 2 of her friends have been trying to, and guess what, they are being stone walled about getting back to headquarters to complete the process.

As many here know I lease my truck onto my carrier, but I don’t lease the truck from them. IF being self employed owning a truck is what someone wants to do, save your pennies, buy your own truck, then lease onto a carrier. Just make sure you know what your getting into.

Just my humble opinion.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
Brett Aquila's Comment
member avatar
Just make sure you know what your getting into

If people really knew what they were getting into they wouldn't be buying or leasing a truck at all, unless they were just doing it as a glorified hobby. The smartest long term business decision is to remain a company driver.

Rick S.'s Comment
member avatar

double-quotes-start.png

Just make sure you know what your getting into

double-quotes-end.png

If people really knew what they were getting into they wouldn't be buying or leasing a truck at all, unless they were just doing it as a glorified hobby. The smartest long term business decision is to remain a company driver.

Not to play pile-on here (as I do know O/O's that are doing OK, some even pretty good).

The fact of the matter is - when it comes to NEW FOLKS - we always advise to take your first year or two to learn how to operate safely and efficiently. Watch, read and observe, then learn the business.

As far as "company leases" go - the amount of RISK, versus potential REWARD (the reward being, making SIGNIFICANTLY MORE than if you were a company driver) - just doesn't seem justifiable. The amount of additional financial responsibility, versus the opportunity for making more money just isn't there - another couple of hundred a week (possibly) versus going in the hole over equipment downtime, hometime, etc... Now, a couple of hundred a week (potential) might seem like a lot, but in the overall picture is really not.

People who are used to making $25-30K a year, see $45K a year to start as "vast riches" - it's all subjective (from someones perspective).

PJ is a different story - he already owns his own truck, and is leased onto a carrier who handles his dispatch, billing and compliance. It's a whole different world when you are independent and running your own MC number.

As many people are relating here lately, we "appear to be" in a freight slowdown at many companies. If you think the company drivers are suffering, imagine how the lease-ops are FREAKING OUT.

Rick

Old School's Comment
member avatar

I'll go ahead and pile on...

PJ is a different story - he already owns his own truck, and is leased onto a carrier who handles his dispatch, billing and compliance. It's a whole different world when you are independent and running your own MC number.

PJ is our friend and he's doing a great job, but I can never come up with a scenario that makes what he's doing "a whole different world." Brett said something that has always been my same conclusion...

The smartest long term business decision is to remain a company driver.

The key words are "long term business decision."

Even PJ himself alludes to a three year plan and a possible five year strategy. At that point, from what I gather from his comments, he's planning on getting out. That makes what he's doing (allow me to borrow another phrase from Brett's comment) seem like "a glorified hobby."

A long term (independent) plan is very risky in this business.

Truckin Along With Kearse's Comment
member avatar

A brand new lease op called me yesterday. "What does Prime do when you have a death in the family?"

I explained he could catch a plane and fly home and Prme would have a team pick up the truck to bring back to the terminal. I didnt know what he might be charged.

He said, "Ohhh no one is driving my truck but me. No, I mean most companies you work for give you three days". Oh... he wants berevement pay or the truck payment taken care of.

I told him, "Call this number and work it out with them." I gave him his own phone number. I then explained HE is his own employer, not Prime as stated in the contract i have read several times and he hasnt.

He responded that he thought they would be more compassionate with a family death. They might delay the truck payment but they wont forgive it.

This guy had just bragged to me that he was out 10 weeks and went home with $4000 in his last check. When I told him he should have no problem covering a couple weeks off if he did what i told him and set up a $300 a week Emergency fund.

He responded.... "Well.... most weeks i made less than $800 and a couple i was in the hole, so that didnt happen".

I then averaged out what he made $1100 per week. I averaged out what i made solo including 2 hometimes over 10 weeks. I averaged $1400.

Sounds like he made an awesome decision.

Terminal:

A facility where trucking companies operate out of, or their "home base" if you will. A lot of major companies have multiple terminals around the country which usually consist of the main office building, a drop lot for trailers, and sometimes a repair shop and wash facilities.

Robert D. (Raptor)'s Comment
member avatar

I don't know about other companies, but at Swift, 95% of lease ops and o/os have to have a student or they won't make it. But have your own truck? Are enjoying paying out for fuel, tires maintenance plus that huge weekly payment?

Robsteeler's Comment
member avatar

I'm not tempted anymore to lease. I would definitely not be tempted if I leased and still had to depend on someone else to pick my loads. At least Schneider let's you handle everything yourself. You pick the loads yourself from the app. I'd like that aspect the most I think, but not enough to do a lease. I've read some of the trip planning articles and I see some companies allow their company drivers to get all their loads for the week set up to plan. That's one aspect I would really like. With my company I get a load. Complete that load. Wait for another (I've been lucky, I usually never have to wait, but I hear other drivers complain that they wait days sometimes. I'm usually constantly running) then deliver that load and get another. I never have more than one load unless there's a holiday or computer upgrades where they have to give me several loads at once. I've done much better that way because I was able to plan better. But back on topic, the only thing that I see leases offering that I'd like is the planning aspect, but I see I could get that and still be a company driver at several different companies.

Rick S.'s Comment
member avatar

I'll go ahead and pile on...

double-quotes-start.png

PJ is a different story - he already owns his own truck, and is leased onto a carrier who handles his dispatch, billing and compliance. It's a whole different world when you are independent and running your own MC number.

double-quotes-end.png

PJ is our friend and he's doing a great job, but I can never come up with a scenario that makes what he's doing "a whole different world." Brett said something that has always been my same conclusion...

double-quotes-start.png

The smartest long term business decision is to remain a company driver.

double-quotes-end.png

The key words are "long term business decision."

Even PJ himself alludes to a three year plan and a possible five year strategy. At that point, from what I gather from his comments, he's planning on getting out. That makes what he's doing (allow me to borrow another phrase from Brett's comment) seem like "a glorified hobby."

A long term (independent) plan is very risky in this business.

Actually - I said running your own MC #'s (independent) is a whole different world.

I have a number of friends that own, and are leased onto carriers. They seem to be OK with their results. And that's OK for them.

As a long-time business owner - the risk is too great, there are too many variables that are completely out of my control. As someone who has observed results here and other places, as well as having seen some of these leasing agreements (company lease), the deck is stacked way too much in favor of the company (both in the matter of risk and profitability).

Don't we have enough to worry about as truckers, to add on the financial obligations (payments, maintenance, breakdowns, etc.)? DRIVE THEIR TRUCK, let them maintain it, collect your paycheck...

Rick

PackRat's Comment
member avatar

This guy had just bragged to me that he was out 10 weeks and went home with $4000 in his last check. When I told him he should have no problem covering a couple weeks off if he did what i told him and set up a $300 a week Emergency fund.

He responded.... "Well.... most weeks i made less than $800 and a couple i was in the hole, so that didnt happen".

I then averaged out what he made $1100 per week. I averaged out what i made solo including 2 hometimes over 10 weeks. I averaged $1400.

Sounds like he made an awesome decision.

“But I’m my own boss”rofl-3.gifrofl-3.gifrofl-3.gif

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