Questions About Prime Leasing

For example, I picked up in Washington and I'm going to New York. Approximately 3000 miles....only 7000 lbs in the box. The load pays $5900. I'm getting an average of 9 mpg. So I will use 334 gallons of fuel. Let's say fuel is 3.75 / gallon. I'll spend $1250 in fuel. My fixed costs on my truck is $1100. Some simple math and we can see my total expenses would be $2350. With just this load by itself I'll make $2500. A company driver would only make half that....i don't understand the 3% profit margin.

I'd actually make $3500 not 2500

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.

I think that was me Terry and I'd be happy to answer what I can. I have been working in home loan finance for the last 2 years and before that I worked in automotive finance. Many of my self-employed clients never thought about the consequences associated with taking legal tax deductions. I just wanted to throw out there the other things a person needs to think about besides just gross pay.

Jolie

I think the fact is this is a gamble. Think of it like a casino, you are the guy riding a winning streak right now from seeing your payouts. But also factor in casinos don't get rich by everyone winning. And if leasing a truck was always a win companies like prime wouldn't do it. Yeah the owner gets money from the lease company but he also eats a lot of loss every time someone trashes a truck and walks away. What is your bottom line on that loaf after you pay taxes, social security(dint you have to pay in to that somehow as a contractor?) Medical insurance, and cover yourself in case you hurt yourself on the job since you are liable for workers comp as a 1099? Does the 1100 for a truck Per week cover insurance too? I'm not bashing, I'm just trying to figure out your secret because I've seen the side of owner ops and you seem to be doing well so far.

I used to work construction and I made it to a crew leader but I refused to go out on my own, my boss paid me well and I stayed. I could of made more, but it wasn't worth the headache to me for it to be my name on the line. I never screwed up but I've been on jobs where I watched the boss eat a couple thousand in material because someone or even himself did. Not too mention I knew he was eating over twice as much as I was in taxes and I was single at the time lol. As in most things in life, someone can usually make money doing what they want, someone can really like what they do, and someone else can look at it and think they are crazy. It takes all kinds of people in this world, come on we don't all want to pump septic tanks for a living but thank god some guys will lol.

Of course there will be a week at some point you blow 2 tires you have to pay for and spend a week stuck somewhere for some reason and you get a bill instead of a paycheck. That's the nature of the beast. But I hope it doesn't happen :) I am curious about the numbers I mentioned above though, what all do you have to account for as a contractor and what does prime help with. I have no interest leasing but I'm always up for learning.

< As in most things in life, someone can usually make money doing what they want, someone can really like what they do, and someone else can look at it and think they are crazy. It takes all kinds of people in this world, come on we don't all want to pump septic tanks for a living but thank god some guys will lol.

Amen, Jay!

*resisting the urge to comment*

I'll say one thing, you're showing us your absolute best. An absolutely best load that is rare, most loads don't pay like that, nor cover that many miles. You're also showing your best paychecks. I can turn heads with my very best stats too.

You aren't mentioning how everything looks like after being at home or having a breakdown.

And Terry, I don't have a problem with you. You're not the first to ask about leasing nor the last.

My problem is with Robert and his need to insult everyone. Funny how I'm being insulted about "retiring from being an instructor" when he himself doesn't even qualify to be an instructor. Clearly digging into my past to find ways to put me down. That's my problem, not you, you didn't disrespect me in anyway or single me out like he did many times .

I am currently a TNT student at Prime, so by all means a newbie to the industry; however, I am currently rolling with a lease operator at Prime. I get to see how much he is getting paid on loads, and he seems to make some pretty good money. With that said, we are rolling as a team and getting twice the loads he gets solo. I do not see how he could make appreciably more money than a solo company driver if he wasn't rolling with students all year.

More money? Sure. But to me it does not seem to be enough to make the additional risk incurred worth it. So I, at least initially, will be going company once I finish my TNT training. Most of his buddies that are lease seem to run students as well.

Hope this helps.

I am currently a TNT student at Prime, so by all means a newbie to the industry; however, I am currently rolling with a lease operator at Prime. I get to see how much he is getting paid on loads, and he seems to make some pretty good money. With that said, we are rolling as a team and getting twice the loads he gets solo. I do not see how he could make appreciably more money than a solo company driver if he wasn't rolling with students all year.

More money? Sure. But to me it does not seem to be enough to make the additional risk incurred worth it. So I, at least initially, will be going company once I finish my TNT training. Most of his buddies that are lease seem to run students as well.

Hope this helps.

Running with students is the only worthwhile way to make money as a lease. I will admit, the money is pretty good as a trainer doing TNT but you add even more risk to the equation. Just not my cup of tea.