Questions About Prime Leasing

Daniel I read the thread before I commented and so many others before this one and again I stick by what I say. You really need to watch how you say things to people because again as I said numerous times its how you say things that puts ppl on guard. You have a right to have personal opinions but so does everyone else and as a MODERATOR it is your job to be as biased as possible. This forum is for HELPFUL, FRIENDLY advise. And yesim going to be harder on you because you have taken on a roll to set a STANDARD!

*UNBIASED

Daniel, she and others do have some merit to what they are saying. I too have read your posts for a while. I've been on this forum longer than you have. I would like to offer that you learn to temper your responses with some grace. I don't mean this as an instigation, but rather an admonishment. I can relate because I can be like you. I've mellowed a bit w/ age, but I can sometimes be a bit idealistic, and quick to shoot from the hip. Take it for what it's worth. You've got insight, experience, and have done well for yourself. Don't let it get to your head, and learn to take some criticism.

10-4. Thanks for the constructive feedback.

Thanks RedGator I didn't think anyone would see my side...Daniel does have an extreme fan club and I was worried they would throw me under the bus. But yes it would be in Terrys best interest to talk to other lease operators to see how well its working out for them as well.

I dont do fan clubs well except my own cause I.....I AM AWESOME

Daniel, she and others do have some merit to what they are saying. I too have read your posts for a while. I've been on this forum longer than you have. I would like to offer that you learn to temper your responses with some grace. I don't mean this as an instigation, but rather an admonishment. I can relate because I can be like you. I've mellowed a bit w/ age, but I can sometimes be a bit idealistic, and quick to shoot from the hip. Take it for what it's worth. You've got insight, experience, and have done well for yourself. Don't let it get to your head, and learn to take some criticism.

10-4. Thanks for the constructive feedback.

I've gained a lot from your posts and have respect for you. Glad you received my suggestion well, that says a lot about your character.

Jolie, I already talked about having to pay taxes on that money so maybe you should fully read the thread before you comment next time. And yet after all these comments no one has yet to give a good reason of why leasing from Prime is bad besides having a truck payment when you take time off or being broke down. But anyone with anything between their ears knows that, it isn't a surprise to anyone. If there wasn't any risk there wouldn't be any reward.

You know Robert, you really are a piece of work. The point I was trying to make was to think about how owning one's own business could affect other things in a persons life. I work in finance and most people don't consider that banks will ask for the last 2 years tax returns and average the adjust gross income to see if a loan can be obtained. There are many more factors to being self employed than just the things you have presented and I thought it was a good idea to share some. You seem to be hell bent on insulting everyone who does not agree that you have everything figured out.

If there wasn't any risk there wouldn't be any reward.

Ok, that leads to the question I always have about leasing or owning a truck.

What is the average profit margin in the trucking industry? About 3%.

How much money can you lose going into business for yourself? More than 100%. You can actually go beyond losing what you already have and wind up in debt beyond that.

So you'll wind up buying or leasing $100k+ worth of equipment knowing your average profit potential above and beyond what you would make as a company driver is 3%.

Say an average experienced company driver makes $50k. Another 3% would be $1,500 per year.

So on average, a lease driver or owner operator can expect to make 3% more than a company driver. That equates to $1,500 per year or $30 per week. Now how many more hours of paperwork do you think a lease driver does? What about the bills above and beyond the expense of the truck itself - things like your attorney & accountant? Self-employment tax or the cost of incorporating? Things like that......they add up quickly.

So the risk/reward ratio for leasing or owning a truck is abysmal. You're risking everything you have and then some at the hope of making an extra $30/week on average. That's not a logical business decision.

Now you can do it for the sake of the challenge. You can do it because it's exciting. You can do it for the heck of it. Everyone has that right. But you want to be a business owner in a commodity-service industry with 3% profit margins? In a business where you're the owner but in reality you're completely under the control of the company you're leased to? You want to compete with other businesses where you have no way of differentiating yourself from the competition? To say you're going to do that because it makes good business sense would be an awful tough sell.

The bottom line question is "What do you consider being a successful business owner in the right business?"

To me it means:

1) You have total control over your operations and you're not at the mercy of any partner or competitor

2) You have a clear way of differentiating yourself from the competition

3) You make considerably more money than you could ever dream of making as an employee in that business

4) The risk/reward ratio of starting and running the business makes very good sense

So you have to define what success is before you can say someone can or can not be successful at something. When it comes to leasing or owning a truck, the numbers for me just don't add up. It's all risk & almost no reward, capital intensive, a commodity service, high litigation risk, tight profit margins, etc, etc.

After the 10th insult I've taken I think it's called for. I respect other people's opinion but after being told I can't manage my day to day business, after being told I drive a LW truck because I casomethin eything bigger, and after many more insults - what do you expect? I'm nice but I don't just sit and take insult after insult. Reread their posts please.

Daniel, you totally jumped to the conclusion I insulted YOU. If my remark was directed at you I would have quoted your previous remark like I did here. This post is directed at you. I wasn't referring to anyone on this forum with my common denominator post. You act like the only people I've talked to is on this site. And if asking others opinions on the matter is a disrespect to you than I respectively ask you to get the chip off your shoulder. A difference in opinion doesn't constitute a disrespect. I have not once singled you out on this thread until you steered me away from the site which seems to be because I've asked for someone else's opinion which insulted you. It seems you're taking your position as mods as the end all be all of the site. And by helping"hundreds" of others doesn't give you the right to be so tactless to the people you don't agree with.

back on topic, I can't go back and see the name of the poster talking about the tax and verifiable income on tax with lease driving so I apologize but that is an aspect of leasing I haven't heard much about and appreciate your comment on that. I will look more into that aspect before I make my decision which won't be for a bit down the road.

I'd ask for more information on this topic but I don't want to offend anyone else for asking about something a mod might disagree with. After all everything that is being said is going thru one ear and out the other.

Sorry the quote didn't work on my last post but the first paragraph was a quote.

Brett thank you for chiming in and giving me some tangible numbers. Here is what had added top my decision to look at leasing. At Prime, if you go company when they give you a dispatch, they'll tell you how much fuel to get, where to get it, what routes you need to take to get to your delivery (seeming to only take shortest route over terrain/traffic etc) That was not explained to me until I got to orientation and our left a bad taste is my mouth. They don't micro manage the lease operators like that which is why I'm asking for opinions about leasing at prime. Im quite capable of navigating the country and choosing my home time. I don't need top be managed that close. So the lease operators have a bit more freedom it seems. Which I like. But the financial aspects and responsibilities seem very great. This I'm asKing for more opinions. But clearly some people can make it work. And if I can find out how and why, I'll listen. Thanks for taking a moment to explain.

If I was only making an extra $30 / week after all my expenses I wouldn't and I'm sure other drivers wouldn't be doing leasing as well. The business has changed since 15 years ago.

And just to add, I don't do anymore paperwork than a company driver. That goes back to hiring Abacus. Some people are just set in their ways, but once again until you have done a lease with Prime specifically then I doubt this thread is entitled to anyone's opinion then those who have.