Prime is the best I've found so far. Any better deals?

Discussion in 'Lease Purchase Programs' started by Voodooking, Feb 19, 2017.

  1. ready to roll

    ready to roll I ain't got no panties

    I was talking about my exp with a lease 10 years ago, not Prime. Sounds like Prime has a much better lease deal then the one i had.
     
  2. Mike

    Mike Well-Known Member Staff Member

    How do they handle lumper fees now? Out of their percentage, or out of yours?
     
  3. ironpony

    ironpony Well-Known Member Supporter

    That depends on the contract with the shipper. The less lucrative loads are loaded on company trucks as much as possible - they're paid per mile.

    That doesn't mean a lease op isn't going to be presented with something that's in that realm. The object is to move freight.

    Dispatch is made via a regional mty queue... you go in at the bottom, and are presented the best available load when you hit the top. Some priorities exist with loads that require a team, hazmat qualification, hi-val qualification, etc.

    Company guys are force dispatched, lease guys can reject a load, but go to the bottom of the queue. That spreads the not-so-good loads around, and prevents one guy from sitting at the top of the queue cherry picking loads.

    There's not a simple answer for, "how much."

    We're reimbursed for 99% of lumper fees.
     
  4. Mike

    Mike Well-Known Member Staff Member

    Do you know, before accepting the load, if this potential fee will be covered?
     
  5. Mike

    Mike Well-Known Member Staff Member

    Well, from his response to my Schneider thread, 72% is bringing him north of $1.40/mile for all miles on the truck.

    How far north is the question
     
  6. ironpony

    ironpony Well-Known Member Supporter

    Any special terms for lumpers are always covered in the dispatch. Default is that you're going to be reimbursed. Many of those that aren't are due to the driver screwing up. Something like not getting the fee approved by the shipper prior to telling the lumper to get busy.

    Its such a minor deal, that I rarely have a problem with it.
     
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  7. Mike

    Mike Well-Known Member Staff Member

    That is a clear positive change from my dealings with them. Back in the 90s and for my very brief stint in 2002 as a lease purchase driver, it was simply part of the rate and you had no idea until you got there whether it would be a lumper situation unless you knew the place.
    I used to get it covered through dispatch before taking the load if the rate was questionable.
     
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  8. ironpony

    ironpony Well-Known Member Supporter

    '15 - $1.68 pm

    '16 - $1.67 pm

    I know it was higher in '14, but that was a one-off year. You could swing a dead cat, and hit a load with a superb rate anywhere the corpse landed.

    It varies with how you conduct your business. I set a daily revenue goal, and try to exceed it as much as possible. Loads that don't meet that goal are rejected.

    I concentrate on regional loads - Midwest, and Northeast, that minimize my costs. Doesn't mean I don't go out west occasionally... someone's gotta clog that granny lane!

    :D
     
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  9. Mike

    Mike Well-Known Member Staff Member

    That's the type of numbers I was used to, and 2014 was a wonderful year, lol.

    Could have kept my numbers up there this year, but wasn't willing to follow the rates.
     
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  10. JunkYardDog5958

    JunkYardDog5958 Well-Known Member

    National beef in dodge I refuse to load there. Cargill I just drop trailer and go home as I only live 60 miles from Dodge City and 85 from Garden City. I usually schedule something 3-4 days from when drop then head there to grab and go. Living in area helps hugely.
     
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  11. dchawk81

    dchawk81 Well-Known Member

    I wasn't asking for the number. I was only saying the dollar number would be my primary concern as a lease operator more so than the percentage figure or the offer of "lots of mileage."
     
  12. ironpony

    ironpony Well-Known Member Supporter

    I've been getting scheduled in do I don't have that wait. Dispatch shows that big window, but I'm getting there at the back end of it. The shippers have done a better job of getting our loads out too.
     
  13. Steve R

    Steve R Member

    Starting with what the load actually pays.
     
  14. Mike

    Mike Well-Known Member Staff Member

    I guess it really pays to keep up with current information regarding the various companies.

    I believe @ironpony in regards to the rates, but if someone off the street tried to tell me that, I would consider them to be lying. My first experience with them was great, but over two decades ago. Early 2000's? I wanted to drive their lease truck through their building.

    Is it what I would want to do now? No. It does sound like a viable option for someone who doesn't mind being gone from home longer than I prefer, and doesn't mind giving up full control over load choice and crazy appointment times.

    As for leasing a truck, I would still want to nail down the cost specifics, and total payoff for the truck. Keep those things in mind for any lease purchase. Know what your overhaul cost is going to be, and realize it is very possible you will need to have that money on hand once the truck is paid off. It's real easy to fall in the trap of having a lease purchase almost complete, fear the truck being too costly to repair, and simply start the leasing process over again.
     
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  15. ironpony

    ironpony Well-Known Member Supporter

    Look, it's a business, so you have to approach it that way. To adequately analyze something like this you need to put together a profit/loss sheet that analyzes what your anticipated revenue will be, costs (including your salary) and see how it works out. I use conservative revenue numbers for something like this.

    "Accounting for Dummies" is a good condensed reference for how to look at these things. "The Personal MBA" is a good basic business course.
     
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  16. mndriver

    mndriver curmudgeon extraordinare Staff Member Supporter

    Doesn't matter who the lease is through. You will still have fixed overhead and variable fuel and maintenance costs.

    Do you give the lease company control to squeeze you out? Or do you keep the entities separate? Risk management now.
     
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  17. Voodooking

    Voodooking Member

    We are talking about current deals on the market.
     
  18. ironpony

    ironpony Well-Known Member Supporter

    They don't "squeeze out" lease operators at Prime. In fact, if you turn in a relatively clean, undamaged truck at the end of the lease, you can expect to walk away with a reasonably good sized payout. You get (by law) the balance of your escrow accounts - that's the required tire escrow account and your voluntary emergency fund, as well as any portion of the mileage charge not deducted for repairs.

    Most carriers were sued in federal court by OOIDA for misusing the escrow account system, and in the worst cases - CRE for instance - illegally retaining all escrow funds. The suit against Prime was dismissed with prejudice.

    "Squeezing out" is an attempt by the carrier to retain the asset and the accrued cash.
     
  19. ready to roll

    ready to roll I ain't got no panties

    Well excuse me! :bootyshake:
     
  20. dud3r

    dud3r Member

    What are the requirements to take part in the Prime lease? I looked into it and couldn't find a clear answer.
     
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