I've Decided To Lease At Prime

After quite a bit of consideration and extensive research I've decided to lease instead of being a company driver at Prime. As many of you know I was on the fence going back and fourth with my decision. Many of you whose opinions I value tremendously made very compelling arguments against leasing ( Brett, Old School to name a couple). Understand you made me really evaluate my decision.

For many of you that may be entering the trucking profession and are considering leasing yourself I want to let you know that i completely agree with the experts on this site, Don't Lease!!!! Become a company driver and let the company pay for the truck. You can earn a very nice income in a relatively short amount of time. Let the company pay for all the fixed and variable costs associated with truck and just drive.

So what makes me so special !!! First and foremost it is not entirely about the money for me, let me explain. Before I decided to get in trucking I had already retired

OK, Brian, you made your decision. Now keep us in the loop and post your experiences (and expenses!) for us to follow along. Best of luck!

So what makes me so special !!! First and foremost it is not entirely about the money for me, let me explain. Before I decided to get in trucking I had already retired

Oh man. You have to finish your explanation!

By the way, anyone who starts a business and says isn't all about the money ends up without any money. So that's good. Your results will be in line with your expectations.

But even without the explanation we know.....it's about control. It's about choosing your loads. Yada yada yada......

Good luck!

Oh man. You have to finish your explanation!

I completely agree!

I also retired before I started this as a second career, but that usually indicates that you've been around the block enough to know how to hang on to what you've worked so hard for. I'm at the point in life where I am ready to be a little less risky with my money. I was a hell bent risk taker for most of my life - I worked hard, played hard, and still am going strong, but I also know how to recognize a losing proposition.

Did you get a new truck, used one ready for rods and mains. Pull two one in the middle and one on either end. To rebuild an isx runs about. 15 k and c15 cat a little more. So I hope you got a low mileage truck. I had 4 trucks for a 27 year period so if you have questions I or some other owner operator will answer. I only had one cat a. 1982 k100 with a 3406 A model. It had nozzles instead of injectors. Plus the fuel pump was 4 K dollars. So I'm a cummins guy. Plus I had an 8. V 92T and an 8 v71t. Anyone remember those.

Hmmmm 15k? .........wow a complete premium overhaul, in-frame kit with new pistons and liners all gaskets for the Cummins L-10s, and NH 855's are under $1500.00 lol......Still have my engine manuals for those, I used to in-frame....Torqueing them main bearings was no joke @ 600 ft pounds! and on your back under the truck hahaha!

Sorry magically posted so let me finish,

As I stated I had already retired from my first career. I am fortunate to have made few good investments and ran a successful business for over 20 years. In fact the business I was in had about the same profit margins (3 to 4%) so I know how difficult it is to be successful. Both of my children are grown, have degrees, and are starting their own careers. I am divorced so I can commit quite a bit of time to my business. I am debt free with a positive cash flow. Basically if I fail it won't affect my standard of living. If I told you I didn't care about my investment and I didn't want my business to make money that wouldn't be truthful I absolutely care.

Also realize that I completely understand the huge risks and challenges I am undertaking. Believe me not every one of my investments in the past has made money. I decided to take some time and digest the comments of Brett and Old School. Brett you had asked about control than quipped yada yada yada afterwards. Let me answer that question. Yes it is about control, but not entirely the way you suggest by your sarcasm, its about control of my investment ( money, time, and what I expect out of this in the end).

Brett you have stated in many posts that the profit margins are razor thin. I agree they are, but they also have been on the rise for the last few years with higher expectations in the future. The past two years they have been around 6 to 7 percent. You also fail to mention that it is based off of net earnings which includes the driver salary and all expenses associated with the business. This is much different than saying if your lucky to make 3 to 5%.

Brett you are also a business owner, you wrote a fantastic book that was gifted to me by the way. I consider you an expert on the driver side of the business, but you have never owned a trucking business correct? Thats not meant to be derogatory, as I never did until last Tuesday, so I consulted with people that have and do. I am not talking about lease operators at Prime but individuals that started with one truck and grew their businesses successfully. Some of which sold their businesses to larger company's. They gave me a plethora of information and it all boils down to a simple rule of business A) Time Management B) Watch your Costs and C) Be Organized.

Old School, Thank you for the shaky words of encouragement. I completely understand your decision to be a company driver and really respect it. I am only 48 years young and still have some entrepreneur issues to address. Can't help it. If I were a tad bit older I would be in your shoes and be a company driver as well. I know you have owned trucks for your sign business in the past and have that experience.

I once helped finance a relative in a electrical business. Not much just enough seed money to get on his feet. The third week in business he buys a bucket truck!! Of course I was ****ed, what the heck is he going to do with this truck. He does residential work and has no commercial experience. He goes to small sign companies and rents it out to them while in the mean time hires a commercial electrician to wire their signs. He made so much money off that used bucket truck he purchased at auction that we still laugh about it today.

I feel like the family puppy that just tinkled on the floor or the kid that just broke his fathers fishing reel trying to explain my decision to you. I also feel I owe you both a debt of gratitude for all the time invested in me. I wish to share my experiences being a lease operator with everyone on the forum. I promise not to sugar coat it and tell truck stop stories of how much money I'm making. That would defeat the purpose of this great site.

The purpose will hopefully diss way any future drivers that think what I am undertaking is easy. Its like adding another job on top of driving. Hopefully I don't become another statistic, only time and hard work will tell. I will try to add something each week to my blog as time permits. I will try to give as much detail without overwhelming myself or readers with to much info. Hopefully readers will enjoy another perspective.

By the way I leased a 2016 Freightliner Cascadia Evolution with a DD15 engine for those who asked. I also have 1yr 100,000 mile warranty on the Tractor and a 3yr 450,000 mile on the drivetrain, which in turn the end of my lease. Also I have started my business as an LLC called Pack Mule Trucking of Florida which will be changed to a c corp y the end of the fiscal year.

I have consulted my attorney on the lease as well as the business to understand my legal liability if anything were to go wrong. I also hired an accounting firm that specializes in the trucking industry. Last but least I also hired a co-driver who is still a Prime Company Driver but permanently loaned to my company. Of course I pay his wages and benefits through Prime. Cant make money if the wheels aren't

Finally, I will start my blog in the diary section this weekend sometime. Hopefully will give some insight on leasing and the struggles of my small business. Also some success stories. The only thing ask in return is that I dont hear i told you so on minor setbacks.

I once helped finance a relative in a electrical business. Not much just enough seed money to get on his feet. The third week in business he buys a bucket truck!! Of course I was ****ed, what the heck is he going to do with this truck. He does residential work and has no commercial experience. He goes to small sign companies and rents it out to them while in the mean time hires a commercial electrician to wire their signs. He made so much money off that used bucket truck he purchased at auction that we still laugh about it today.

Brian I hope you are not using that experience as an indicator of how you can make a ton of money with a truck. We used to send out about three trucks and four or five men and be able to charge 600 dollars an hour for the use of that equipment - there is simply no comparison to moving freight.

I for one will be looking forward to your reports, and since you don't seem to be aware, we actually have quite a few lease operators in this forum, but you don't see us giving them the "I told you so" grief. I'm an entrepreneur at heart, I love free enterprise. There are few business climates in the world like we enjoy here in America - I'm all for what you want to do, I just know that I have "pencil whipped" this lease/op ideal to death and never could make it come out the way I thought it should. I stuck with being the best I could be as a company driver, found a good fit for my drive and talent, and I find the work rewarding, the pay more than acceptable, and the freedom from concern to be the icing on the cake.

Brian, this is a business which produces a very positive cash flow. The problem with that is that many people confuse that with actually making money. It sounds like you know the difference. It is easy to be duped in the trucking business into not looking far enough down the road to know what your projected future capital expenses will be. The expense of the equipment, the constant depreciation of it's value and the very real need to keep it replaced with newer more efficient low maintenance replacements is where today's owner operators always get tripped up. If you can keep an eye on the needs of your new business venture about five years down the road, and have a plan of how to deal with those needs, then you can do it successfully. There are many who have succeeded at this, but there are far more who have failed miserably. I hope to see you on the winning side of the averages.

I once helped finance a relative in a electrical business. Not much just enough seed money to get on his feet. The third week in business he buys a bucket truck!! Of course I was ****ed, what the heck is he going to do with this truck. He does residential work and has no commercial experience. He goes to small sign companies and rents it out to them while in the mean time hires a commercial electrician to wire their signs. He made so much money off that used bucket truck he purchased at auction that we still laugh about it today.

Brian I hope you are not using that experience as an indicator of how you can make a ton of money with a truck. We used to send out about three trucks and four or five men and be able to charge 600 dollars an hour for the use of that equipment - there is simply no comparison to moving freight.

I for one will be looking forward to your reports, and since you don't seem to be aware, we actually have quite a few lease operators in this forum, but you don't see us giving them the "I told you so" grief. I'm an entrepreneur at heart, I love free enterprise. There are few business climates in the world like we enjoy here in America - I'm all for what you want to do, I just know that I have "pencil whipped" this lease/op ideal to death and never could make it come out the way I thought it should. I stuck with being the best I could be as a company driver, found a good fit for my drive and talent, and I find the work rewarding, the pay more than acceptable, and the freedom from concern to be the icing on the cake.

Brian, this is a business which produces a very positive cash flow. The problem with that is that many people confuse that with actually making money. It sounds like you know the difference. It is easy to be duped in the trucking business into not looking far enough down the road to know what your projected future capital expenses will be. The expense of the equipment, the constant depreciation of it's value and the very real need to keep it replaced with newer more efficient low maintenance replacements is where today's owner operators always get tripped up. If you can keep an eye on the needs of your new business venture about five years down the road, and have a plan of how to deal with those needs, then you can do it successfully. There are many who have succeeded at this, but there are far more who have failed miserably. I hope to see you on the winning side of the averages.

Thanks Old School, That story was just funny ditty. Certainly not the basis to get into the trucking industry. But it did teach me not to be as short sided, and also some things lead to others. Thanks Again

Last but least I also hired a co-driver who is still a Prime Company Driver but permanently loaned to my company. Of course I pay his wages and benefits through Prime.

Brian, am I understanding this correctly? Are you going to be operating the truck as a team?

If so, I understand the reason for trying to increase the revenue to the truck, but man that has got to be a difficult way to not only start your trucking career, but to start off your business also. Maybe it is just my personality, but being in a team position just adds a whole new dimension of potential problems into the mix.

I really do wish you well, but I'm concerned that you have jumped in way too deep for a rookie driver.