Prime Lease Update

Topic 27474 | Page 1

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Eric G.'s Comment
member avatar

Hello all,

It’s been a long time. I last posted here before I went back to Prime for my second go around with TNT. Got in just before the change in miles. I also mentioned I would be going Lease. I know that lease is a no no around here, but I felt it was right for me.

So on the year I only had 6 mo this if solo time as a contractor, the rest of the year I was training it at my previous job.

In 6 months time I Grossed over $100k in revenue including reimbursements, fuel savings, detention pay etc. all the things I as a contractor receive money for. Now I know I do t get all of this money in the end I netted over $33k in 6 months. And after I paid my quarterly taxes I averaged .55/mile in my first 6 months.

So I’m posting this not to say haha or anything like that. But for those new drivers who are thinking about this. It can be done. But it will require much sacrifice and dedication. I worked all but 14-15 days in those 6 months. Taking only 1 34. I had to change my mindset from miles to revenue. I didn’t care if it was 200 miles I cared what was the total revenue and how did it fit into my average each week. You have to be business minded. Prime pays my business and I pay myself the minimum amount that I have been told is the minimum average that drivers make. That way if I get audited it won’t look fishy. In fact every decision I make is how do I do this and the business still turns a profit.

All in all I’m happy with my decision. What the future holds for me is unknown. I could stay a one truck operation or continue on my path of a small fleet. But 2019 my second go around in trucking has offered me the freedom to control my life.

I still appreciate this site for all it has done guiding me on this path. Even though I do t post much I stop to read from time to time.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.

TNT:

Trainer-N-Trainee

Prime Inc has their own CDL training program and it's divided into two phases - PSD and TNT.

The PSD (Prime Student Driver) phase is where you'll get your permit and then go on the road for 10,000 miles with a trainer. When you come back you'll get your CDL license and enter the TNT phase.

The TNT phase is the second phase of training where you'll go on the road with an experienced driver for 30,000 miles of team driving. You'll receive 14¢ per mile ($700 per week guaranteed) during this phase. Once you're finished with TNT training you will be assigned a truck to run solo.

PackRat's Comment
member avatar

55 cents a mile and one major breakdown and repair away from bankruptcy.

Sounds like a great business plan!

rofl-3.gifrofl-3.gifrofl-3.gif

Eric G.'s Comment
member avatar

Thank you for your response. I’m glad this group isn’t full of people who throw shade in others for being different.

Jamie's Comment
member avatar

Nice update, glad things are working out for you! Hopefully things keep going good for you.

Leasing and owning a truck is very risky but many people make it work, all depends on the person and what they want out of it. I personally love being a company driver and not having to worry about all the extra work and worries that come along with owning or leasing a truck. But keep us updated during your journey, I'm sure some people will be interested in reading it.

Old School's Comment
member avatar

You're doing good Eric. This comment stood out to me...

I had to change my mindset from miles to revenue.

That tells me you understand something about what you're doing.

I'm hoping you realize that most lease operators think they're doing well at the beginning. Honeymoons have a nice feel to them. It's always the long run that tells the true story. Keep us posted as the years go by.

I'm sorry I don't remember your reason for going lease. What was your motivation?

Bobcat_Bob's Comment
member avatar

I am glad you are happy with your decision but a few things stand out to me. You worked your tail off for 6 months and cleared 33k so in theory in a full year you would make around 66k if everything goes to plan. So you would end up making what a average company driver would make while taking on huge risks and added stress.

Like I said I'm glad you are happy but personally I see no upside.

Steve L.'s Comment
member avatar

Hello all,

It’s been a long time. I last posted here before I went back to Prime for my second go around with TNT. Got in just before the change in miles. I also mentioned I would be going Lease. I know that lease is a no no around here, but I felt it was right for me.

So on the year I only had 6 mo this if solo time as a contractor, the rest of the year I was training it at my previous job.

In 6 months time I Grossed over $100k in revenue including reimbursements, fuel savings, detention pay etc. all the things I as a contractor receive money for. Now I know I do t get all of this money in the end I netted over $33k in 6 months. And after I paid my quarterly taxes I averaged .55/mile in my first 6 months.

So I’m posting this not to say haha or anything like that. But for those new drivers who are thinking about this. It can be done. But it will require much sacrifice and dedication. I worked all but 14-15 days in those 6 months. Taking only 1 34. I had to change my mindset from miles to revenue. I didn’t care if it was 200 miles I cared what was the total revenue and how did it fit into my average each week. You have to be business minded. Prime pays my business and I pay myself the minimum amount that I have been told is the minimum average that drivers make. That way if I get audited it won’t look fishy. In fact every decision I make is how do I do this and the business still turns a profit.

All in all I’m happy with my decision. What the future holds for me is unknown. I could stay a one truck operation or continue on my path of a small fleet. But 2019 my second go around in trucking has offered me the freedom to control my life.

I still appreciate this site for all it has done guiding me on this path. Even though I do t post much I stop to read from time to time.

I’m glad you are doing well. There will always be people who aren’t willing to make the sacrifices you are regardless of the type of business.

Congratulations on your success and I hope it continues!

One friend of mine, who’s an Owner/Operator, stays on top of the maintenance religiously. I encourage you to do the same and that truck should keep producing.

I hope you have continued success.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.

TNT:

Trainer-N-Trainee

Prime Inc has their own CDL training program and it's divided into two phases - PSD and TNT.

The PSD (Prime Student Driver) phase is where you'll get your permit and then go on the road for 10,000 miles with a trainer. When you come back you'll get your CDL license and enter the TNT phase.

The TNT phase is the second phase of training where you'll go on the road with an experienced driver for 30,000 miles of team driving. You'll receive 14¢ per mile ($700 per week guaranteed) during this phase. Once you're finished with TNT training you will be assigned a truck to run solo.

Grumpy Old Man's Comment
member avatar

I am glad you are happy with your decision but a few things stand out to me. You worked your tail off for 6 months and cleared 33k so in theory in a full year you would make around 66k if everything goes to plan. So you would end up making what a average company driver would make while taking on huge risks and added stress.

Like I said I'm glad you are happy but personally I see no upside.

Exactly what I was thinking.

And how much are you putting aside for maintenance?

I’ll stick to letting someone else take on the risk and stress.

Jeremy's Comment
member avatar

At 55cpm average i can only guess yout not getting very good miles i hope things pick up for you that whole 33k could be gone in one frame in rebuild and its not an if its a when stay on top of that maintenance

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

PackRat's Comment
member avatar

Here's a minor repair I had last night. Removed and replaced a brake canister on a tractor drive axle.

Labor: $100.99

New Parts: $111.99

Shop Fees: $12.78

Total Charges: $225.76 (That's about what I earn a day driving, gross)

Down Time: 4 Hours 15 Minutes

Cost For A Company Driver: $0.00

Free Rewards Points On My TA Card: 225

0887657001580130745.jpg

How much would this have cost a Lease Purchase driver, Class? On major repairs, tack on another two zeros to the end of that bill.

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