Prime Leasing - Financial Pitfalls

Consider a lease a long term rental contract.

A lease is a contract typically with an end date out a couple of years. Failure to finish the term of the contract may cause financial penalties to kick in.

If they have to repo the truck for any reason a penalty for the cost of repoing it will most likely be applied.

Just like a car rental if you go too many miles a penalty may be imposed.

Unlike a car rental most truck leases require the the person leasing the vehicle to pay for maintenance and repairs. Part of the problem with this is you get behind financially fast if the truck is in the shop for 2 week, even for warranty work. You would still be on the hook financially for 2 weeks worth of payments even though the glorified rental truck was in the shop. If you are not on home time throw in the 2 weeks of hotel also.

Most truck leases are almost set up like a predatory loan. The reason most lease is because they do not qualify for standard bank financing of a truck. Just like the shady "we finance everybody" used car lots the lease typically has an over the top interest rate.

Beware the buyout at the end. I have seen 5 year leases with a $75,000 buy out at the end.

If a trucking company leases trucks to drivers they may be money ahead if driver goes belly up and turns in the truck. They are not financially motivated to have the driver successfully complete the lease.

 

I leased a truck from Prime when I was a rookie. It was a mistake.

I was a company driver first for about six months, then my old trainer talked me into leasing. I lasted about a year. I had enough data to determine that my net gain from leasing was about 2 cpm after everything except what I lost at the end of the lease, when it became a net loss of about $6000.

All you really need to know about their leasing program is their lease rates. Compare the rates for tanker, flatbed, and reefer fleets. Why does the same equipment have a difference of $800 per month (when I was there, probably more now) from tanker at the low end to reefer at the high end?

Then compare their lease rates to any other outfit that leases trucks as a business and discover that you would be paying a lot more leasing from your employer than you would leasing from a regular leasing outfit. But you might not be able to lease from one of those places -- because they know you don't know enough about the business to make any money at it!

Oh, and they're not your employer! You have to do all your taxes, including Social Security, etc.

Just don't. Get a job (even at Prime if you must) as a company driver, get a couple years under your belt, and then think about it.

 

Compare Semi-Truck Leasing & Lease Purchasing | Prime, Inc.
one thing you read is $0 down payment, later you read $14,000 down payment for lease purchase.
Rent/lease is $0.
Ever hear that about all good things have a hidden agenda?

 

Your "opportunity to be involved in the small business dealings normal o/o would be exposed to, without any major risk" is not true. You'll assume all the costs associated with running a truck. If you think keeping a truck going doesn't involve money and RISK I've got some ocean front property in Arizona I'll make you a great deal on. Most real owner operators at least have the opportunity to take advantage of occasional spot market upswing in rates. Isn't leasing on at Prime just working for consistent flat cheap rates? Where's the opportunity in that? There is none.

 

YouTube is full of these Prime idiots who got duped into a lease, all they do is post videos trying to recruit without trying to sound like they’re recruiting.

 

Leasing/renting/buying a truck for a new(er) driver....is a lot like the Air Force putting a brand new pilot in the front seat of an F-15.

YOU'RE JUST NOT READY YET

-- L

 

Lease-to-own is like buying stocks on margin; yeah a small percentage do well, but the vast majority get scr3w3d......

 

you are asking this question when you already know the answer. you know "lease purchase" is scam, don't you? do you want to hear something different?
smart people learn from other people's mistakes. Idiots repeat the same mistake and expect different results. you decide.

 

if your credit sucks work on getting it better stash your cash and buy a decent used truck and go where you want. don't try and buy a truck from the company that controls your revenue!!! last i knew they wanted atleast 23k down plus what ever extra options you wanted down!!!! payments are 1,400 - 1,600 a wk plus whatever else they get you for!!!! your nothing more than a window licker paying there bills!!! i swear they make more money off lease purchase deals than moving freight. oh did you also know all of the liability falls on you to? hell if i was single i would get rid of the apt house and live out of the truck since your out for long periods of time.