Prime Lease Update

Topic 27474 | Page 2

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Truckin Along With Kearse's Comment
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Im glad he is content. As far as 55cpm... that is what i average with my bonuses and what a brand new drivers in a lightweight gets.

When it comes to.maintenance the trucks are brand new under warranty so that isnt an issue... and Prime requires a cpm be put into a "tire fund" for maintenance. The hotel stays or tow bills would be an issue.

Not having workmans comp or health insurance is a huge risk. Also, being responsible for the loads.... as.in damage the load and it isnt covered by insurance. Tbe insurance only covers accidents. Also there is a $10,000 negligence clause....so one mistake and whammy.

The lack of health insurance, dental, life, disability and vision as well ask 401k dissuades me.

CPM:

Cents Per Mile

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

Stevo Reno's Comment
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Curious Pack Rat why was brake chamber replaced?? Only thing that fails on them in my years working of class 8 trucks, were the service diaphram rips/tears once in blue moon the steel disc bends or breaks off shaft (rare)

Lock out the spring remove top half slap a new diaphram in n go lol......( failure was usually from not draining the air tanks, sludge n oil build up rots the rubber?

Eh not sumpin a company driver needs to worry about since they aint payin' dancing.gifdancing.gif

Eric G.'s Comment
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I’m going to try and answer all of the comments or questions. I apologize if I missed one or two.

First the easy ones. Repairs I have a 2020 FL that had 16 miles on it when I signed the lease. The warranty is for most major repairs and is good for 650k miles. Unless for obvious reasons it is owner negligence.

Prime has info on all of my maintenance and when everything is scheduled to be done for preventative. All I have to do is go to a TA or a terminal.

If I have to cover a repair this is how it would work. There is an optional emergency fund a driver can set up. And there is a tire fund that is not optional. I have already had to replace a Drive it cost me $300 roughly and was covered by the mo eat set away in my tire fund. As for the EFund I have one set up but I only use it for when I’m taking extended time off to cover my fixed costs. Any other major repairs I would pay for out of my business account. I save more than I pay myself so that just in case I’m covered.

As for Workers Comp we have an occupational insurance that we pay into every week for workers comp type claims. And I have full benefits at a cost of just over $300 month, roughly $78/ week.

As for my miles to be honest I’m glad they are low. I would rather have less miles and still average the $4200/ week gross. Less miles is less wear and tear. If I can make the same mo way in less miles then that’s better for me.

As for the extra stress. I do t feel any added stress. I have to make appointments just like a company driver. I want to be safe just as well. We get bonuses for being safe and for our service if we run over , amount of miles a week. But mostly only teams get these bonuses.

And .55/ mile is a good start for a driver with less than 6 mo this sooo experience. Prime company does get there but you have to hit all your bonuses each week. I know with more experience I could get a job at a company making more, but then I’m also not my own boss. And I’m sure someone out there will say I’m still working for Prime. I guess you could look at it like that. But I’m going to be able to buy this truck and leave with it in a few years. Then go contract on somewhere else if I do choose to do.

I chose to go lease because I knew how hard I worked as a company driver. I knew how hard I worked at other jobs to move up the ladder. If I was going to put all of that effort in again, why not do so for myself and a company I build. I understand what I’m giving up and what responsibilities I’m taking in. But the reward has the potential to be soo much more the way I see it.

And if it doesn’t I can always just go back to company.

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.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.

OOS:

When a violation by either a driver or company is confirmed, an out-of-service order removes either the driver or the vehicle from the roadway until the violation is corrected.

Cornelius A.'s Comment
member avatar

I will put in my 2 cents in the insurance aspect...Every load behind haul under a company's authority is covered by that company. They may charge the O/O or L/O a monthly fee for the coverage but any damages to the load falls under their cargo insurance since they are the ones on the BOL.

Occupational mostly known as Occ/Acc has similar coverage as Workers Comp but with a lot of limitations , any lawyer that truly earned his law degree can go around those limitations in a heart beat and make the company cover whatever limitations they have on the Occ/Acc policy which is why evry company that offers that coverage also gets a contingent liability policy to cover their behind. ...

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
PackRat's Comment
member avatar

Curious Pack Rat why was brake chamber replaced?? Only thing that fails on them in my years working of class 8 trucks, were the service diaphram rips/tears once in blue moon the steel disc bends or breaks off shaft (rare)

Lock out the spring remove top half slap a new diaphram in n go lol......( failure was usually from not draining the air tanks, sludge n oil build up rots the rubber?

Eh not sumpin a company driver needs to worry about since they aint payin' dancing.gifdancing.gif

KW stock chambers are one-piece from the factory, no clamp on it. This one leaked air, coming from the relief hole on the bottom.

I would not recommend just replacing the diaphragm, reason being all of the corrosion the unit is subjected to. Eventually it will corrode through the metal casing somewhere.

Old School's Comment
member avatar
I'm sorry I don't remember your reason for going lease. What was your motivation?

I chose to go lease because I knew how hard I worked as a company driver. I knew how hard I worked at other jobs to move up the ladder. If I was going to put all of that effort in again, why not do so for myself and a company I build. I understand what I’m giving up and what responsibilities I’m taking in. But the reward has the potential to be soo much more the way I see it.

And if it doesn’t I can always just go back to company.

I'm curious what the rewards are? You say they are "soo much more the way I see it."

You have already established that your income is considerably less than most Top Tier Drivers. You've also established that you go home very seldom.

I worked all but 14-15 days in those 6 months. Taking only 1 34.

Okay, so you're working more, but earning less. That's because you're convinced you see a brighter future.

the reward has the potential to be soo much more the way I see it.

Just where are you seeing this potential? You have no power to increase your rates. You can probably not work any harder or more than you are now. You have no control over your freight volume.

You have a really nice new shiny truck now. It's reliable and under warranty. That's great, but in a short five years all the major players in this game would have that asset for sale due to it's reliably increased operating expense and it's rapidly decreasing value. Yet you see it differently.

I’m going to be able to buy this truck and leave with it in a few years. Then go contract on somewhere else if I do choose to do.

Have you seen the success rates of the people who lease from Prime? By success, I'm defining it as the number of people who complete their lease. The last I saw was just under 25%. That tells me it's not very feasible. Apparently a lot of people think it's going to be great at first, but the wear and tear, and frustration eventually wears them down.

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.

That was nice of you. We're glad you are so magnanimous. But really? You are posting this "for those new drivers who are thinking about this." That's really great Eric. You've got six months experience and now you can give really helpful advice for new drivers wanting to build a business in one of the most cutthroat business climates known in the markets?

I'm hoping you realize we can't take you seriously. We're genuinely glad that you are happy with your decision, but I stand by my original observation...

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.

Eric, this past year, and already during this first month of this year, we've witnessed some very large supposedly successful trucking operations fail miserably. We know how brutal this business can be. We always teach people how to succeed as newbies. What many people fail to realize is that those same principles are what keeps you successful as an experienced driver. Leasing a truck has never been a path we recommend.

There's a vast cumulative collection of real world experience here. Many of us with decades of business experience. Please don't assume your first six months experience will be taken as having any authoritative weight. Right now you are an anomaly, unfortunately you can't see that.

One day you may be wildly successful at this. Right now you're not. When you are, we will gladly hear of it. We know the odds, and they have been consistently against your plans.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.

OOS:

When a violation by either a driver or company is confirmed, an out-of-service order removes either the driver or the vehicle from the roadway until the violation is corrected.

PackRat's Comment
member avatar

But Old School, I'm my own boss!

Old School's Comment
member avatar
But Old School, I'm my own boss!

Thanks PackRat - I really meant to address that.

It's funny how people say that. I was "the boss" for many years. My wife was a little concerned how I would fare as an employee when I decided to get into trucking. What I found was that I was still the boss! I got to determine how much I worked and how well I did at my occupation.

I know of no other career that provides us with such independence. That independent spirit can really help someone be successful at this, but they've got to channel their energy into understanding how the career works.

Most people have this convoluted idea that says if they own it they will be making more money. It's simply not true. Experience is worth a lot in this career. Establishing it and being able to capitalize on it are the things that help people do well in trucking.

PackRat's Comment
member avatar

I'll let you in on a little secret they probably don't go over about the major maintenance repairs supposedly covered by your warranty.

You go to a TA for the next oil change and grease job. Everything done, happy driving. About a week later, the motor stops, and you get towed to the dealer. After about two days, you get the good news that the motor is blown. Wristpin on a piston broke off, then went through the block, spun the bearings, then that debris made it's way into four of the other five remaining cylinders. Congratulations! You need a new motor.

But you just changed the oil 3,100 miles ago, at a certified maintenance department. Shouldn't it be covered under the warranty?

Freightliner declines the warranty because you went over the service interval, or the new technician put in 11 gallons of 50-weight oil, instead of the required 10-weight oil, or when the shop downloads the ECM data, they see where you went over 75 mph one day coming down Elk Mountain, down shifted to 9th gear with the Jake Brake on high, and over-revved the engine for 3.71 seconds.

The wristpin actually broke due to faulty metal fatigue during the machining process at the vendor, but they won't tell you about that. Warranty claim denied. If you want to fight it, you can hire a lawyer, and that's going to cost more than a new engine.

These are facts. The manufacturers WILL deny major warranty claims, and they do it every day. Hope that maintenance fund is really a large part of your savings after each settlement.

Truckin Along With Kearse's Comment
member avatar

I will put in my 2 cents in the insurance aspect...Every load behind haul under a company's authority is covered by that company. They may charge the O/O or L/O a monthly fee for the coverage but any damages to the load falls under their cargo insurance since they are the ones on the BOL.

As per Primes contracr with the Lease ops... only ACCIDENTS are covered by the cargo insurance. Prime is a self pay and sets the policy. If a lease op doesnt secure the load properly or takes a turn too fast, slams on the brakes and the load is damaged, the Lease/Owmer op pays the entire freight... $50,000 or whatever. One guy back in Sept got hit with a $1.5 Million damage bill. So while you are correct, Prime is responsible, they pass the liability to the driver.

Occupational mostly known as Occ/Acc has similar coverage as Workers Comp but with a lot of limitations , any lawyer that truly earned his law degree can go around those limitations in a heart beat and make the company cover whatever limitations they have on the Occ/Acc policy which is why evry company that offers that coverage also gets a contingent liability policy to cover their behind. ...

I have seen this on the settlements, but have yet to find out what it actually covers. HR told me the lease ops do not have workmens comp, and i know quite a few who were injured and received no benefits whatsoever. Even borrowed money from me to pay for a hotel room, urgent care and RX money.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
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