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To Lease or Not To Lease - 2 Leasing Options with Prime / Success Leasing
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- čas přidán 9. 05. 2020
- There are a lot of pros and cons to Leasing. Is it right for you? I go over the 2 Lease options through Prime via Success Leasing vs financing to help you decide for yourself.
Very informative, I've been considering getting into the trucking industry for about a year now. I grew up around truckers, my dad, and both brothers were/are truckers so it's kind of in my blood. I've been a CNC machinist for 25 years, and I'm done with factory work. I think my plan is to drive company for a year maybe two before jumping in to a lease op situation.
You break it down real good for drivers,now that’s up to them to step in or not,great video
I am very impressed with your common since about trucking.
Thanks Charles
I don’t know much about trucking but I like this guy already!
Glad to see someone that actually runs hard, I have watched videos of drivers making $700 with the lease program. Well newsflash driver you're the problem, you're lazy. Good job JJ!!
Great info! As a fellow Prime driver I’m interested in doing the exact thing! I only have 2 months in the lease I’m currently in! After speaking with Lyle and seeing this video there is path for me to take! A lot sooner! Thanks again Henry!
This was a great video and really help. I’ll do the the first lease option and save for the down payment for lease purchase. Thank you 🙏
Another great video with good info!! I am just researching Prime and RST as a backup company if the car hauling company I work for now does not call me back. I have 24 years driving experience and 16 years of that with and additional 2 years at KLLM in the middle. I love hauling cars and staying in hotels when I am out overnight (company provided through CLC). I choose loads off a load board to go wherever I want. Great benefits with 3 weeks paid vacation after your first 90 days. We run a 6 state area in the Gulf states. We are usually home 2 or 3 nights during the week and reset at home on Saturday and Sundays. I average $1,200 take home after benefits and taxes. I thank Prime will be a great opportunity if I leave where I am now! I made $120,000 a year gross as a company local fuel driver during my fuel experience years. I just didn’t want to inhale fumes anymore and get cancer is why I left. I knew I would get a pay cut. There are guys on dedicated where I am now making $120,000 a year but they have less freedom.
That is great info. Thank you for sharing.
Thanks for the information! I'm going to be a new trucker and your videos have really educated me and help my decision on the school to attend.
right on Lee! Glad I could help. So which school did you choose?
@@JJtheTrucker I chose the school you went too.Prime. I think it's the right choice especially after weighing the pros and cons. Especially finding out how difficult it would be to purchase a new truck without experience. So I learned from you videos what to do
Your videos^^^
@@waleeddortch34 outstanding! Welcome (in advance) to the prime family. Have you put in your application? Have you heard from a recruiter?
Yeah I have put in the application and waiting for a call back. What was your referral code?
Thanks for the info, just completed my 1st year as a company driver and have class tomorrow to start the leasing process. I needed to hear this. Was actually pretty cool meeting you too, was super surprised, anyway, take care and thanks for the info!
Great straight to the point information!
Purely from a risk/reward standpoint, a “walk-away” lease is a no-brainer… if that is an option, DO IT. Especially if you have no experience in the industry. If a driver can net $1200-$1600 each week, if one plays their cards right, those earnings can easily be saved and bankrolled into purchasing a truck in 5 years or 10 years (if that is truly what you want to do). Leasing however does have so many advantages as JJ points out in this vid. Seems like such a great option for new drivers… I’m glad truckers are given this option as it gets better trucks on the road which means happier drivers… which means safer drivers.
Add: The reason these lease options work, is likely due to the fact that Prime Trucking is basically ensuring that the Lease-Op driver will be working… meaning they will essentially be guaranteeing that Prime will have decent drivers to get their freight constantly moving. I suspect that Success Financing is tied somehow to Prime, but I would need to look at that a bit closer. That isn’t necessarily a bad thing even if they are tied to each other… because it’s truly a win:win scenario. Prime gets a steady flow of drivers, using brand new rigs, which theoretically means less down-time due to mechanical failures or other issues related to older trucks… and on the flip-side, Lease-Ops get steady employment with a National company which means steady earnings, and equity into the company which means less turnover. It’s truly a pretty genius formula.
You really hit the nail on the head with that explanation. And yes success leasing is tied into Prime. So is Pedigree Truck Sales.
Great information thanks. In a few months I will finish 1 year driving. And plan to lease with prime next.
Thanks JJ for the info! Some of the best information on CZcams about prime! I’m still waiting for NYDMV to reopen to go get my permit and DOT physical to get over there to start. See ya around!
Awesome! Another Highway Diamond coming on board! Looking forward to you joining the family. And thanks for the compliments.
JACK LOVE the way JJ presents the info is a lot clearer than the other drivers in the past. He’s straight forward with it. You don’t need to comment thanks. Now go crawl back into that hole in the basement.
Thanks Ragegirly, you rock!
Any updates on the DMV? I'll bet they'll be packed when they reopen. Get a number and come back in 3 days! 🤣
JJ the Trucker not yet! I’ll have to check tomorrow with nydmv
Good luck. I'm familiar with the Vegas DMVs and I don't envy you. Especially the one for CMVs on the north side. 🤢
Excellent video and explanations. Clear and concise. Thank you.
Not bad for a walk away deal, I’ve been driving 13 years this year I own a 2012 Peterbilt 386, I pay $355 a week and I still take-home net after everything and after my taxes around $3,500 pulling reefer. My uncle bought a brand new 2019 w900 Kenworth and pays $3,100 a month. Like your content man. Motor safe
Thanks Nate. Wow, that's a great take home amount. Something for me to look forward to.
JJ the Trucker love your channel buddy you’ll get there before you know it.
Thanks. Looking forward to it.
Thanks for watching.
I will let them know jj
Thanks John.
You are welcome jj
Why did you choose Prime over other mega truck companies? Can you have a Home base any where?
Hello Andrew, yes you can have a home base anywhere, well just about anywhere. There are a small number of places where Prime does not hire out of, such as Southern Florida because of low Freight availability. As for why I chose Prime over the other Mega carriers, I go into greater detail in many of my videos but the bottom line is I did a lot of research on all of them, and chose a company that was going to train me with zero experience all the way through and still be a good viable option for the long-term if I chose to stay there. they also have a lot of positive feedback from many current and former drivers.
Thanks J.J for the info. Very helpful.
Plenty of money to invest in the market, real estate, your personal retirement savings plan , another truck ect ...... I would attempt to be as free from debt as possible in anything I do as large amounts of debt equals large risk . Great video, wonderful thoughts and advice! Have a great day and GOD BLESS! 🙏😊
Thanks, yep, I'm currently 100% debt free. And it feels great! 👍
Thanks JJ , I just retired from the Post office and I'm thinking of joining prime, but I think at my age (60) I would want to just be company driver, I'll check it out 👍👍👍
Good idea. Prime treats all of their drivers with respect, whether lease, owner or company.
Seen your truck in Springfield at the yard i couldn't find ya just wanted to thank ya for all the positive motivation I'm in the tnt phase and I'm a few weeks away from upgrading but anyway good luck out there and keep up the good work stay safe
Bummer I missed you. Are you still there or back on the road?
Thanks for the kind words, and those last few weeks may crawl along, but you'll get through it and be in your own truck before you know it.
@@JJtheTrucker thanks for the support and we left out early yesterday but had to come back early this morning for the same issues that the shop and freightliner are having trouble fixing
Hope they get it figured out. Is it a wiring harness issue?
@@JJtheTrucker sorry for the late reply yes had to get a new wiring harness for the old girl then we took of to Florida
Yep, the freightliner downfall. This truck had wiring issues worked on before I got it. No harness replacement yet though.
JJ, just watched both your videos comparing lease to purchase. My input would be to hold on to that truck after your 3 years and continue to drive it. Seems being the original owner you know about the truck and have done the upkeep on it. (Including the pump issue) Like you said it would be extra money in the bank instead of another payment. I am the type who buys something new and holds on to it for a long period because I know the vehicle. I have been driving my Ford for 6 years now and had a GMC prior to that I drove 13 years. Just my 2cents worth... stay safe my friend...
Yes, but not this truck. This one is under the walk-away lease, so after 3 years, I have to turn it in and I get the lease completion bonus, but no truck.
The way to go is to use this lease to save up the money for the down payment on the lease purchase. Then, after 3 years, the truck is yours and your plan would be excellent for it!. Thanks for the feedback.
I’ve been a prime company flatbed driver for a little over a year. I’m thinking about going lease, and try it out and if I like it do a lease purchase. I actually learned some good info on this video thanks.
Excellent, glad it helped.
I can't wait for my truck to get in. Good to see another newer driver with a positive attitude
Oh,i didn't know you ordered one already.
I bet you went Freightliner, didn't you lol
@@JJtheTrucker went with the peterbilt added about 2700 in options. It will be nice to be payment free. Im going to try to pay it off in 2 years
That's awesome! I'm looking forward to that day.
Ouch!! Mine was $22,500 with $0 down, walk away lease purchase for 1.5 years at $1,250 a month and a $0 buyout at the end of the term. I bought out the lease 6 months early and got the title in my name. With that company you are given different terms for length of the lease, and buyout options. I could have done 1 year with a $0 buyout, 1 year with $3,000 buyout (cheaper payments) ect... But, every option was walk away, $0 down and all of them end with you getting the title, assuming you either stay to term or pay off early. They never checked credit or anything, either. My first truck with them was a 4 year lease, $768 a month. Around 3 years in, I traded it in to get the one I'm in now. But, like you, I was tied to them for the terms of the lease.
Thanks for the shout-out 👍
Please help us with more info so we can all make informed decisions.
The $22.5k truck, what was the year, make, model and condition? Did you need to make any major repairs during that term?
Same questions regarding the first truck.
What company did you lease through?
Do you have their website or contact info?
Where are they located?
Can anyone lease through them?
Do they require any experience before you can lease through them, and if so, how much?
I know that a lot of questions, but the more we all know and share, the better the decisions we make.
It's a 2011 Freightliner Cascadia 240 WB and 2.64 rear 10 speed that they fully restored to perfect condition before the lease started. I got to go through everything and write up anything that needed repairs, and they did it. It had new tires and brakes, coolant reservoir, headlight assemblies, grill, coolant lines and about a million other things replaced before I signed the lease agreement. During the term the only major repair I had was the EGR actuator valve went out, and the main wire harness needed to be replaced. Total for both repairs was around $3,500. I also had to replace the batteries a few months ago, but that's pretty much it. Everything else has been little issues that I've been able to fix myself for usually under $100. I will not be sharing the company info bc I currently do not recommend them as they just lost a lot of contacts and had a massive layoff, so now wouldn't be the time to recommend THAT company. But, there are plenty of smaller operations similar to them that still have great deals like this. That company is national, but still fairly small, with about 300 trucks spread across the 5 companies they own. It was a great place to work, until recently. As for my day cab, it was a 2010 Freightliner Columbia with a Mercedes Benz engine. It was the same with that, they restored and repaired anything that needed it. And, when I traded it in I had to do the same for them, which cost me about $8,000 to get it back to trade condition.
Today was my first day at the new company I just leased my truck on with. I went to Dallas and picked up a NEW refer trailer from the dealership. Already have 2 loads lined up. This trailer is pretty awesome! It's a 2019 Great Dane trailer with a Carrier refer unit with 7 engine hours!! Looking REALLY good! Pretty excited!
I know I didn't give much info, but again I wouldn't recommend that particular company right now at all to anybody as they are struggling to make it. And the company I'm with now doesn't sell trucks, they only lease drivers who already own one, or have one financed. This company is even smaller, with less than 100 trucks nation wide. I've had REALLY good luck with smaller fleets. As for experience, I don't ever pay attention to any of that bc I've been driving since 2005 with a nearly perfect record, so I don't ever have to pay attention to any of that. And, yes, the math is correct, I was 18 when I started driving because my first truck driving job was as a truck driver in the Army. Once I got out of the Army I went to ATDS in Waco, Tx to get my CDL. Apparently now you can just convert your military license into a CDL, but back in 2009 I had to actually go to school. Which was a good thing, bc all the Army trucks are automatic, so I needed to learn stick.
Awesome info, thank you!!!
Who is this lease through?
As I said above, I'm going to be shocked if they survive the next year. It was a dry bulk oil field service provider, and they have NO work at all and layed off most their workers.
Sounds like you've got a really good plan. I've been out here for almost thirty-six years, and I started out about like you did. Now I have a nice Newer model Peterbilt it's paid for, I work a week take a couple weeks off.. go where I want, do what I want. It's obtainable hey, if I did it anybody can. I wish you all the luck.
One of these days I'll get to that level, and I'm looking forward to it.
If your goal is to get into a Jumbo, switch to flatbed. A reefer is way to heavy, you'll have to pull a step deck or a bed bugger. Also you left out The lease completion Bonus which you can at lease end pocket and walk away, or use as a down payment on a new truck. Its quite substantial. Any way, its good to see a young person with dreams, stick to them and never quit. Winners never quit, and quitters never win.....
Good info Thomas, thank you.
Thanks for taking the time to do these great videos. I've watched all of your orientation through TNT videos. I'm starting at Prime next week. Your videos were very informative and let me know what to expect.
Outstanding! That's exactly why I started doing them. Very glad they were helpful.
So much good info, thanks a bunch
Thanks for the heads up on catching my chin... Heard the number first and thought, "oh, not terrible at all" and then you said "a week" and wow! Glad you're still making money though.
It's the cost of doing business, and I understand the leasing company needs a little protection, too. Walk away sounds like the best deal for new drivers to the game.
Thanks. That’s exactly the information I was looking for very interesting. Sounds like a pretty smart way to go. I hope to see you about July at Prime. 🙏👍🏿✌️
Awesome, looking forward to it Tedd.
I love the knowledge you give out its gave me alot of ideas 💡
Awesome content JJ, stay safe out there. I’m going to be starting school once my unemployment is up . I live in the Phoenix Metropolitan area so I have a few options for training. I lost my job in the financial industry once this pandemic hit. I’m ready for a career change and have been considering trucking before this all happened.. I enjoy your content and transparency within the industry.
Nice. Are you talking about Trucking school to get your CDL?
JJ the Trucker yes, trucking.
Are you looking into a stand alone CDL school or something like Prime that trains you for free and hires you upon completion?
Sounds like you failed and it's somehow everyone else's fault. Let's break this down...
Yes I know about the training. It's 1 year. Prime makes it extremely clear before you even start. If you can't stay with a reputable company for at least 2 year, somethings wrong with you.
Some people do make 50k and work 70 hrs a week and are happy to have that much money. As for me, I work far less than that and make waaaaaaay more. If you're in trucking and you're making 50k and working 70 hrs, find a better company to work for.
And the whole they'll own it before you pay it off comment, apparently you didn't watch the video and your ignorance is showing.
I'm sure you get off by stealing people's happiness, but you're not going to steal mine.
Thanks for the info! Totally enjoy your channel. Looking to end my current career at the end of the year and going to prime first of next year.
Thanks for the encouragement!
Right on, John. Glad I could help.
Feel free to use me as a referral if you don't have one already.
@@JJtheTrucker Don't have one so I'll certainly do that. You're a good example of the learn, do, teach method of cementing stuff in your head.
Keep up the great videos.
Thanks John
I did lease at prime in 2012 and one thing you have to learn is you can’t go home all the time you have to stay out and make that payment or else you will be in the hole and it can be hard to get out sometimes also always go home on a load never go on home time without one that truck payment don’t stop just because you go home
You just have to plan for it and put a little away each week.
I get his point of view on a used truck go through primes walk away lease save up 25k to 30k buy a used truck for 20k to 25k with paper work on the truck meaning maintenance record see the overall history if its clean rock with it cuz now there's no truck note its all profit besides the normal holdings cuz if you look at
Primes lease purchase your paying close to 230 to 240k for that truck once its paid off your paying for everything
Same with the walkaway lease your paying for maintenance so the maintenance is 3 way street basically your paying for it on all avenues besides being a company driver
Again my message isnt to discourage anyone its my outlook an that outlook means nothing end of the day its your wallet your decision do what works for you not the next guy
Making the switch next year
That was really good information and explanation of the leases. Thank you
Any time Cap. Glad it helped.
$1600/week on reefer truck is a good money if you're ok with the crazy hours of pickup/dropoff specific to this part of trucking industry. I don't know long have you been in this business, but reefer is draining your energy and keeps you more than others on the road in order to "make a good money". The average OTR driver weekly personal expense is a minimum $250. In less your starving your self. Any way good video and best of luck.
Once again, a negative comment with nothing to back it up. Nobody likes a troll, Jack. Either back up your comments with real information or shut it.
Jj i am so proud of you for saying that you dont want to put money down on your own truck
Oh, I do want to put money down on my own truck, BUT not on a lease where the truck isn't going to ever be mine, and not on a truck when I'm brand new to trucking.
My Lease Purchase truck will have a down payment.
I understand i miss understood you
Great info driver! I’m hope next year when all the dust settles after the elections. I’m gonna try and purchase my equipment with pedigree trick &trailers sales. I have enough money saved from my 401k to put a substantial amount for my down payment. I like the fact that they offer you warranties on their used equipment. Which is nice 🙌🏾 love what you do and do what you love driver. I love trucking and I’ve been doing it all my life. Stay safe out there 10-4
Thanks Anthony. If there's 2 things I've learned in my meager 47 years on this planet is 1). Leave the 401k alone. I've borrowed against and cashed them out and now I'm playing super catch up on my retirement. Way behind.
2). Dust never truly settles in politics. It doesn't matter who's in office, (matters more who's in the senate), life goes on and our own personal choices affect us the most. Freight will continue to be strong no matter who wins in November and no matter what happens with this virus or with China, Mexico, etc. You've been doing this a while now, so has it really mattered who was prez?
JJ the Trucker That is so true. I appreciate your insight JJ. But for me I still get a pension if I leave my present company and my 401k is not the only egg I have in my basket . 🙌🏾😀
Nice! That definitely makes a difference 😁
Im 6 months experience and taking home $1200 after taxes with on a set lane dedicated. Leasing is not for me . Thanks good info!
Hey JJ was wondering if you could do a series about leasing. Taxes, figuring out fuel cost, and so on. I don't have a channel to do it and thought it would be good for new lease drivers. Love the channel by the way.
Thanks Nick. I've got a couple of vids regarding fuel and figuring fuel needs. I'll be covering the fuel costs during my upcoming paycheck video series as well. Gonna wait on taxes (other than what I said already in this vid) because I'm still learning and I don't want to give out wrong info, especially about taxes. But yes, I'll talk a bit more about the leasing side.
Wow awesome information I love it Thank you 🙏
From a math perspective: If a driver does a Lease to Own option, and pays it out in 3 years, but keeps the truck for 5 years, they will add $220,000 in their pockets at the end of 5 years. They could then do another Lease to Own at the 5 year point, which gets them another new rig, but with the advantage of selling off the first truck which is now 5 years old. They could probably sell that truck for around $50,000 - $60,000 if I did the math correctly. That $50,000 could pay for the entire first year of the new 3 year truck lease. Which means the new Lease to Own would be like having only a 2 year term or conversely a 3 year term but with lower payments… which means again, more money in the driver’s pockets. This cycle could repeat indefinitely with basically a truck that is never older than 5 years… which is basically a decent truck, particularly if it’s taken good care of (typically that’s the case with leased vehicles anyway). I don’t really see much of a downside here to Lease to Own at all.
Very well stated. And I'm in complete agreement.
JJ can u go into that lease purchase again just getting ready to test out this week and I don't want to get into a old truck with problems. But like u said for new drivers that don't know anything or don't have the money. Great video bro.
Getting an older truck has some advantages such as completing the lease sooner and collecting the completion bonus. You're still under warranty for major stuff, and you get an extra month for the bumper to bumper stuff.
Getting a new truck means less bumper to bumper stuff to worry about, and you're still under warranty.
However, having backup $ in the bank is important for lease/op's for many reasons. There is more instability in the loads and weekly pay, but if something goes wrong, you'll need money to be OK. Just in case. Things can go wrong that have nothing to do with the truck. Accidents, mishaps, an issue with the load, rookie mistakes, etc. If you don't have backup $, you're taking a risk, and it may be best to start as a company driver for a bit, then switch later. Of course you know what's best for you.
Good news is you can switch back and forth. If you still want to go lease and there are no good trucks that you like, you can always go company instead, or pick a truck, then 3 months later, check the stock and get a different one. Or order a brand new one (6-8 month waiting period in most cases).
Hope that helps. Feel free to ask me any follow up questions you like.
Try WFX, the lease purchase is superior to all other leases. There's no down payment, they take .23 cents a mile, $308 fixed payment, and they take. 07 for repair insurance. At the end, you pay $1 to own the truck! If anyone interested let me know.
How long until it's paid off?
@@JJtheTrucker About 3 1/2 years
Win win situation go for it !!
Thanks for all your hard work , in many dimensions !!! Great Channel.
I know that you turned in your Cascadia freightliner and you switched over to a Peterbilt
how did that work out on the lease company -
When you switched trucks ., could you Describe how that transaction took place.
My second question is say that I’m trying to be cheap for bad selection of words cheap .
however say that I pick a less expensive vehicle on purpose to try to keep my lease payments low .
does this change the amount of money for the lease per week
For example say you’re a Peterbilt is $1075 and your Freightliner was hypothetically 900 was this the case or were they both the same price per week .
The process was easy. Sign new contract on my phone, moved my stuff over, cleaned old truck, turned it in. All at the same location.
The prices are the same for all of the trucks. The only difference is as a lease purchase, I could have chosen a 4 year term instead of 3. Lower payments, but more interest paid out.
Great info bro.Been doing my research and calling them to do the same.But once paid off.Thinking about my own authority.Because if you keep hauling for Prime your making the same money only you dont have that note.
I have heard something about Prime logistics but dont know anything..it migth worth checking out.
Take care out there
Yep, Prime Logistics is for those that have their own authority. It's kinda like a broker/load board from what I have been told. Plus you don't have the restrictions and you can haul for other companies. But on the flip side, Prime takes care of so many things by being under their authority. They really make it easy to be a driver.
JACK LOVE dont do what
Like....?
You've been spewing a lot of negative on all my vids but you keep watching them. Unless you're not and you're just trolling. And in all of your comments, there's no details. That's the sign of a troll. So either put up some facts to go along with your negative opinions, or shut it.
JJ the trucker for who its that for my man?
Thats for Jack rigth
Yeah, it's for Jack.
Great videos JJ keep up the good work
Thanks Wombat.
Don't forget leasing you can deduct the entire payment each week from your quarterly taxes for the life time of the lease. A finance you can only do that for about 2 years and then you gotta subtract the depreciative value from the payment and then deduct it. People gotta remember this is a business and a trucking business if your smart and keep track of every single thing you can deduct 10s of thousands of dollars from your taxes. So that 1600 a week you get now you could seriously change that to 2100 up to 2500 a week after taxes.
Interesting info Cody
Yea the largest cost to a truck driver that is a lease op or owner op is the over head. I think primes tax service does all the deductions for your fuel and fixed costs but you would have to double check. You also can deduct a daily per diem for food thats like almost $70 a day your away from home. You can deduct and maitenance and upkeep costs and yes that includes truck washes. You can deduct office supplies and litterally almost any cost accrued as long as your over the road and it actually has to deal with your business. Cell phone and wifi Hotspot is like 50 percent though cause you could use it for personal use as well. I advise to use something called truckn pro. Its a software you can use that will keep track of every single thing pertaining to your trucking business. Take a look, its one single payment and it will help in the long run.
I use a tax service /CPA, and send them all of my expenses monthly. Yes, they track all of those items and more.
I wish there was a all inclusive list of things you could deduct but it seams alot is up for speculation for whatever reason.
It's the complicated tax code. They really need to simplify it. Cut deductions out and cut tax rates down for all classes.
$1000 a week sounds about right for a ~120k truck over 104 weeks. Do that for a couple years and you’ve got a two year driving record and a positive payment history to show a bank.
Exactly! That's the plan... Well, one of the plans lol
Thank you for making this channel, I am just getting my licence and planning on being owner operator soon as possible!? Any advice for a Canadian looking to break into the trucking industry? Thanks I love your videos, btw you have long ass nails 👍
Thanks Star Lord. I haven't been to Canada (yet) so I'm not really sure how their trucking industry works tbh.
And the nails, yeah, I blame the Coronavirus. Can't get a mani-pedi with them being shut down 🤣
👍👍🙏
I have 33 yrs in trucking. I hear what you saying about lease purchase. Yes my jaw drop when you said $1000 week. I've been owner operator since 1995. Never paid more then $1500 month truck note but in your case guess you start out somewhere. Hear the problem will be at 3 years old truck. You will have more breaks down. And down time. And list go on and on and i can sure you It's gona be big $$$ to fix whatever break. You run 7 days week it be less then 3 years You will start having problem with truck especial frieghtliner. Them truck are known engine lights come on and more lights will come on. Bottom line my point is this. These Damn companys ripingthem new unexperience driver and 95% of them dont make it maybe year. Why ? It's all good as long you have no break down. Pls. You make $1600 week clear. Saved that money cause you will need it. I Hear this all time and no matter which companys you with. You getting screwed cause you actually paying note for company. Anyway. Good luck man.
You've got some excellent points. I am paying the note for the company and getting nothing in return for that investment except extra pay to save up in case of breakdowns. I've had a breakdown already, but it was covered under warranty. It's just a starter truck to get you going. I E already saved up enough for a down payment for my next truck that I'll actually own when it's paid off. Im working on that now. Wish me luck.
JJ the Trucker just as soon keep truck you have now till pay off. You will have $80k invest in it by then. Just saying. Lol. You are on right road bud. Keep up good work. Keep on tricking.
JJ what I need to know is if I can make more money net take-home as a solo walk away lease driver then as a company driver on average. Just net at the end of the week or month is all that matters I do not need any benefits or anything like that. I understand the tax implications and write offs in owning a business and leasing as compared to being W-2.. for me it’s about net and being out there on the road for $1000 a week just isn’t enough for me.
Yes and no. There are a lot of factors and each week fluctuates more. Some weeks are under 1000 for me but most weeks are much higher. The biggest factors are 1). Health insurance. If you need good coverage for you and your family, having the company pay for a big chunk of that is good. Going the owner/op route, you pay for it all yourself. 2). There's some risk. Breakdowns, maintenance, etc can reduce your earnings. Having new equipment really helps minimize that though.
Overall, I average around $1600/week before taxes and insurance. I don't run my butt off, but I don't take a lot of time off either. Hope that helps. Feel free to ask me any follow up questions
@@JJtheTrucker Thanks that’s super helpful information JJ. As far as taxes go since you’re leasing you should be able to write off the entire payment or a good portion of it versus depreciation on our owned vehicle so that should help quite a bit. I highly doubt you’ll have to pay more than 12 to 15% taxes at the end of the year with all the right offs. And for me that’s advantageous. My wife has all the benefits so I don’t need them and I’ve owned an entertainment business and have been an entertainer for 35+ years so I’m used to doing all that myself anyway.
This prime lease seems to be the quickest way to get into the quasi- owner operator world that I’ve seen. I have other friends who are running 1099 deals with those Eastern European or Russian outfits and they will run you as hard as you want and those guys average around $2000 a week but they never go home. I want the flexibility to be able to go home for a week every month or so so that’s out. Being a company driver that is also out. So from what it sounds like to me this might just be a great happy medium and when it’s all said and done I would have no problem averaging around 15 or 1600 a week running probably similar to you.
My biggest issue with prime and I guess I would have to get over that is the training. It’s so damn long. I’d be coming in with my CDL but no experience so I guess it would just be The TNT portion 10 to 12 weeks though bro... that’s almost as long is basic training and infantry school in the army together!!! But an even smaller quarters! I have to think that could be a major contributor to people blowing out of the program right there but everyone says primes training program is the best.
Yeah, the training is long but it is really good.
Do you already have your CDL or are you getting it separately?
TNT training is 50,000 miles if you go through Prime's CDL Training. It's 60,000 if you go through someone else.
On the other hand, if you have experience, then you'll have fewer miles to complete.
@@JJtheTrucker no I’m finishing up my one on one driving at Sage truck driving school in Fort Pierce Florida in the next few weeks. Maybe I should drive with somebody else first for six months? Do you have a prime recruiter I should call to find out how many miles I would have to do training with six months experience or does prime require one year? By the way we are based north of Okeechobee north of Orlando but we are moving out of Florida likely to the northern Arizona or Utah area in May
The recruiters are pretty busy with the hiring rush, but either way, it'd be worth it. I don't think the miles come down until 2 years experience.
Good news is it's truck/team miles, not just your miles.
I wish primes trucks had the swivel passenger seat like the Kenmore trucks do and that set up..
JJ wow you want a RV Large car truck. When I drove the chaps who had them kind of trucks were house hold movers or electronic show where they would go and set up the the booths at convention shows. Some people with drop deck trailers would have those sleepers 110 0r 120 inch bolt on sleepers that can cost as much as a new truck. the bottom line is they hauled specialized freight. some straight trucks had those sleepers as well. You are a man with a plan so be it. Oh some specialized car haulers ie alied lines had them they had vans that hauled rich peoples super expensive sports cars you know movie star type rock stars ex ex.
Wow jj!! Im at kllm and they have the same walk away lease but its lease purchase so after the term they sell you the title for $1 if you want the truck. I feel like its a steal here for a 2020 they are doing it for just under 600 a week and 1200 a week for teams. Teams is a 28 month lease and then you can buy for $1. But your deal is a bit sweeter where you can order your truck how you want
That's awesome and good to know. How many months at $600/week?
@@JJtheTrucker 69 months for 579 for a 2020. Me and my girlfriend are teaming right now and it seems like the teams pay more but at also seems like its better because you own it sooner and get another one sooner whichever is your preference
Yeah, teams pay better at Prime too and it makes sense, since the truck is always moving and the customer pays more for the faster delivery. Sooner is better in my opinion. I had a choice of 36 or 48 months. I chose the 36 because the loads I get cover the amount and plenty more, so why not get it paid off sooner?
Good choice.
JJ, But you can't change Primes basic specs. Like a larger engine DD 15 505 HP. Faster speed , longer wheel base. Ect. Correct?
Correct. You can go up to 65 mph, but that's due to being under their authority. If you go under your own authority, you can change that. There are some upgrades that are available, but not those. So yes, there are limits. Those limits are designed to save you $ in fuel and get more options on heavier loads, so it's a trade off. If you have to have thise options, then purchasing outside of Success Leasing would be the way to go.
To lease or not to lease. That is the question.
You haven’t heard JJ the trucker unless you heard it in original Klingon.
batlh jIHeghtaHvIS.
trying to get into prime sometime this year after i turn 21 and that 1500 a week is already more than i make working at dominos so i would be able to stick it ou making that much a week.
JJ is there a balloon payment at the end of the of the lease?
Yes. It's $1.00. Then the truck is yours.
When you do a walk away lease what options can you put on your truck? What arrangements with Prime/Success Leasing do you have about making your payment if they can’t get you the loads
For the walk away lease, you get a choice of whatever trucks they have in stick. Some are new, some are used, but none are more than 2 years old. They all come with an APU and inverter.
Once you're driving for a few months, if you don't want to finish thst lease out, you can then order a Spec truck with your options.
Were guaranteed $1/mile minimum (on average over the course of a year), but there's no guarantee you'll get a certain number of miles or loads. Fortunately, Prime's customer base is large and diverse. Even during the 'Rona slowdown, we had plenty of business and loads. It really shouldn't be an issue. With that being said, any business can experience slow downs and should have enough capital to survive it. If you don't, then you may want to start out as a company driver until you can build that up.
Thanks for the video appreciate it
You bet Mother Trucker. 😊👍
1 other positive to leasing as a new trucker ... Since you don't have any business credit... By leasing your building that business credit!!
Actually............
If you're leasing through the company, if there's no credit check, then there's no credit reporting, and it doesn't help build the credit. On the flip side, it'll never hurt your credit either should things go south.
@@JJtheTrucker Ahhhhh... Got ya!! Thank you for that insight.
You bet!
You can self report your truck payment to dunn and brad street so yeah you can still build credit
How do you do that?
Great video man!
Thanks Marcus
@JJ the Trucker so if I do a lease purchase I can leave prime anytime and get my own authority?
Yes. If you get your own authority, you can continue making the truck payments to Prime, with no change in terms. 👍
@JJ the Trucker So how much is the lease buyout for a standard lease?
For the standard lease where you don't put any money down? It's soooooooo not worth it. You have to finish off the lease, then put the same amount of money down, then pay for (if memory serves me right) 2 or 3 more years! Might as well just order a new truck, put the money down and pay for it for 3 years. You'll have a newer truck at the end, plus have your custom options from the start.
Do you guys keep the same trailer with prime ?
my lease is 650 a week 5 yrs but I have 25k balloon had since it was new with 121 miles on the dash
Did you put any money down on it?
With $0 down, your total payments plus balloon is & 196,000.
The Pri. E plans payments are much higher but with the payments and down payment, the total is $181,500, with no payments 2 years sooner.
Prime is taking care of us! #Primestrong
That, they sure do. I do feel the love working with them. Just picked up a mask and more sanitizer from the terminal.
JJ you a fool? Lol! I'm not...we making money out here and they are keeping us running... apparently someone is not! I'm greatful for Prime and I have a great fleet manager !
I must be. Some rando on the internet that doesn't know me says so, so it must be true lol.
This fool just booked another load this week bringing my total revenue up to $8,000 for this paycheck. How foolish of me 🤣
net profit is before they take taxes and expenses ?
I'll be doing a video on that soon once I compile the full year's numbers. Stay tuned.
Dude I'm a company driver and I take home $1200 a week. Working local too
Nice!
Can you self dispatch at Prime?
Just applied and enjoying your content
Woo hoo! Let me know how it goes. Did you use a referral code for anybody on the application?
@@JJtheTrucker I didn’t and apologize …. I’ve already submitted my app and just heard I in one of your videos that once the app was submitted it was too late. I’m coming from a call center background as well, just over 20 years… I’m waiting to hear back from the assigned recruiter.
Call Dustin Hensley at 417-521-3905. He might be able to add it still depending on where in the process your application is.
You have a dispatcher/driver manager you drive a truck that belongs to them and you can only haul their freight. You are an EMPLOYEE you just pay them for the privilege.
If leasing was the way for drivers to make money, trucking fleets wouldn't do it. Its not hard to figure out.
Sorry if this upsets people.
And yet I'm making lots of money. Hmmmm.
@@JJtheTrucker Still an employee though. Courts around the world are starting to rule against such practices.
Get back to me in 5 years and let me know if it was worth it. If it was I'd suggest you'd be one of the few.
Ooooorrrrrrrr, you can just talk to the many successful owner op's that it has already worked for at Prime. I have. Of course, not everyone succeeds, but if you can run your business and manage your finances, you can. I have heard a lot of fail stories as well. From lease and from non lease. People fall out of trucking all the time, even after buying their own truck. You can't have success stories without failure stories and vice versa.
@@DaveG7920 Actually... you are wrong. By law, he is an independent contractor. This is governed by both federal and state laws OF THE UNITED STATES. Courts around the world? This is covered by both the I.R.S. tax code and by federal and state labor laws.
Next in line, trucking companies do it because it makes good business sense. First, it reduces their capital expenditures allowing for a better growth model and solvency. Second, it is a prove fact that when a worker (driver in this case) has a vested interest (i.e. receiving a larger piece of the pie- even counting expenses), they typically perform at a higher level. (The better they do, the more they make, the more the company makes.) Third, MANY independent companies utilize dispatch companies (meaning they have a dispatcher.) Many companies have exclusive contracts as well stating that there vendors only supply to them. For example, HP, Apple, Ford, Chevrolet, Walmart, Target, etc....). That does not mean that the vendors are employees. As a lease operator you are an independent contractor just as an O/O. You just don't own your equipment. There are O/O's that DO NOT OWN THEIR TRUCK! They lease, just not from the carrier.
So, to sum it all up.... You are either ignorant of the facts, know the facts and are intellectually unable to process the facts, have be 'educated' by someone that thought they knew the facts OR you are trolling. Maybe because of that being just who you are or you failed as a lease operator because of faulty business practices or just were not good enough to handle it and keep rolling like you have to. As a business owner your motto should be, "If it is going to be, it's up to me." If you own the business, you own the outcome.
And yes, I do know what I am talking about... at least business-wise. Me and my ex ran numerous successful businesses. Only reason we aren't still is apparently that, although I was good at business, I wasn't good at marriage at that time (her opinion) or she wasn't (my opinion).
@jay, face on his comments, I don't think he's ever actually been in a lease or have any experience in this matter at all. He probably just regurgitating stuff that he's heard from somebody else
JJ quick question do you know if someone wants to pay cash for a new truck if Prime will sell it to them at cost in other words using MR lowe purchasing power to save rather than just going outside to a dealership were you might not get such a deal. Oh thanks for the great vid.
That's a good question. I honestly have no idea. Maybe the guys at Pedigree Truck Sales would know. They're the Prime company that the general public can cuy Prime trucks from. Not sure if they only do used of if they do new as well.
@@JJtheTrucker Thanks JJ .
Hi JJ, this is Fred. This is the 2nd time watching this video. After all your expenses you're still left with on average 15 to 1600 a week, from which you pay your taxes, right? Now, do you pay out of pocket for your own medical insurance, dental insurance, and retirement as well ? Might be a good idea for a future video. Thanks JJ👍
Yes. That amount is before taxes and health insurance or retirement. I do it that way for an apples to apples comparison since those items can be different for different people.
This is great info. So what are the requirements to start this with Prime?
Best bet is to head to driveforprime.com and speak with a recruiter. They'll be able to guide you through the process and get you all set up. 👍
And you get to write off that lease payment and repairs
Yep, and a whole lot more.
@@JJtheTrucker I was about to ask this same question. Awesome! I’m sold. Some guys on here mentioned how they make something similar working as company drivers. Well you mentioned in your video after three years you keep that money obviously in your bank account because you’ve paid off the lease. That’s the real difference.
Exactly, plus with all the write offs, your taxable income is much lower, so less taxes, plus free Healthcare through the exchange!
But... There is more risk involved, so weigh the options and have plenty of money set aside just in case.
The home time is good with Prime?
Yes. As a company driver, yiu earn 1 day off for every 7 days on. Seems to be pretty standard out there. As a lease or owner /op driver, you set your own schedule and take off as much or as little as you want.
Sorry for so many questions. Do you have to get your own commercial insurance, or is that cost baked into the lease payment? I appreciate your help. Thank you!
No worries ask as many as you'd like.
The insurance is baked into the lease.
@@JJtheTrucker Thank you! I have to say, your videos have really made me decide that the Prime Lease Operator opportunity is the right fit as far as what my end goal is, to become an O/O someday. When I call then I'm using your referral code for sure, no doubt about it. Do you think it's better to go to school own my own and pay out of pocket, or go with Prime's training? I'm about to sign up with a local school here in NJ. Thanks again!
Prime's training for sure.
1, They train you really well because they know that you're going to be driving their trucks.
2, they loan you $200/week during the CDL course.
3, they work with you until you pass, even if you're struggling. They really want you to pass.
4, ITS FREE! (with a one-year commitment to Prime).
Have you looked at what happens at the DMV, registration? Do you need to register it in the state your LLC is in?
No, you need to register your CDL in the state of your residence. But your LLC can be in any state. It helps for your LLC to be in the state where you reside so that you can get a bank account but there are plenty of banks that will do it for you Nationwide such as Bank of America, Etc. I prefer local banks so I have my LLC in both Missouri and in Nevada for that reason.
@@JJtheTrucker I think I worded that poorly. When you discussed purchasing the truck, do you then register the truck in your name, the license plate?
Only if you're running under your own authority. If I'm under Prime's Authority, then they register the plates. Saves a lot of hassles that way.
Great video!!!
Thanks madmex
When you lease your own vehicle can you take the truck home on ur offtime or is it only if your under your own authority
You can take the truck home with you during home time for as long as you want, just as long as you keep making the payments. Even as a company driver you can do that, but only for a few days. If it's going to be a week, they may want to put their truck to use and make you turn it in... So I've heard. Not sure how true it is.
If leasing a truck through prime and it’s in the shop for several days do you get a loner truck to keep you running
Yes, you can get a loaner truck from Prime, or take a vacation. Your choice.
Hey bro great videos. I'm in TNT phase right now. I have a question....do you think you can make more money teaming?
Yes. There's definitely more money in teaming. You put in more miles and the truck rarely stops. Plus you get premium loads such a cross country and high value loads that pay more.
@@JJtheTrucker thanks for the reply. Be safe out there boss.
Is there a fee outside of getting the vehicle back to the original condition? Thank you
Nope. No penalties for walking away. As you mentioned, they charge (not much) to restore the truck to sellable condition, any maintenance due and tire usage is pro-rated and you lose out on the lease completion incentive, but that's it. I just went through it and it was pretty hassle free.
I have 2019 Freightliner cascadia brand new. My downpayment is $35,000 monthly 2,435 only for 48 month. Yours is really expensive a week more than $1000 monthly u pay more than $4000 also u say that u have $1600 before taxes u can make more than that if you really in to trucking I was a driver at Warner enterprise there leasing is more Worse than prime anyways the good thing u don't worry about any kinds of permits that's u need to have for different states.
Good info. Yeah the trade offs for the higher payments are a much lower down payment (less than half) and the truck is paid off 25% sooner. That means I'll have 12 months of $0 payment in that same time frame (plus the extra $20k up front) in my pocket.
I did the math and it really depends on a lot of factors. Generally a lease will be more expensive, but it has benefits as well such as extra tax write offs and the ability to walk away from it at any time for any reason without having to pay it off.
@@JJtheTrucker Thanks for Quick response 😆😁 I learn a lot @JJ the trucker Keeps the good work stay safe from the Virus (COVID19)
Look for the answers in this Sunday's video.
Prime backs us up 100% if we shut down due to bad weather. You do get used to driving in the snow however. Ice you really don't want to drive through though. Maybe a little bit but if it's really icy, it's definitely got to shut down. As a lease or owner up, you can choose to run in certain regions or avoid other regions however it will seriously reduce the number of loads available and will reduce your income, potentially drastically. I knew somebody who only ran the Western 11 and their paychecks were less than half of mine. Everybody wants to run in the Southeast. What does that tell you?
If the weekly “net” was higher, I think it would be a good consideration for most, but $1,600/wk is about average pay for drivers outside of mega carriers. Everything sounds really good, but with the net that low, I don’t think I’d go that route.
It's not for everybody, but to be making the average of someone who's not at a Mega, plus to have all of the benefits of being at a Mega, including all the work they do for me so I don't have to, I can say it works well for me.
@@JJtheTrucker if you like it, don’t let anyone tell you different
Helpful info 👍
Excellent!
Planning on getting into a walk-away-lease with a team driver. What are your thoughts.
I'm not a team type of person, so I'm not the best to answer this, however Johnsons Logic and No Hippie Trucking and Transportation are both lease op's that have done team. Check them out.
Doing lease purchase, do you make less per week on average vs just regular lease operator?
No, it's about the same. There are some added costs, but other costs (compared to the walk-away lease) are removed or reduced. It pretty much evens out.
Can you get a Pete on the walk away lease? What’s cost of it?
Yes. You may get lucky if one is available right away. If not, you can order one after 3 months.
The price is the same as the Freightliner. For the walk away lease, it's $0 down, around $1075/week for 3 years with the option to walk away at any time wiithout penalty.
Would you recommend lease purchase vs lease operator?
Does prime drivers get to choose like regional or local driving after training?
As a company driver, no. Not right out of training. There are a few regional routes that Prime has but they're hard to get into due to limited availability. Lease drivers can choose their areas, but you generally don't make enough money by doing that. That's where a lot of lease drivers fail. Prime really is an OTR company.
I’m thinking about getting a job at prime but I don’t want the responsibility of the lease yet how much can company drivers make
I understand. A lot of drivers start out as company and if they want to switch, they can. Company drivers earn $0.48/ mile. Average 2200 - 2700 miles per week.
More details can be found at driveforprime.com/?r=PAUJAJ and if you sign up, tell them JJ Paulson (Driver Code PAUJAJ) sent you.
Do these leases have mileage caps? If so, what are fees?
Sorry for the delay in answering, I had to look it up.
It's not a cap, but a flat out charge.
5.5 CPM is taken out right off the bat.
Then, an additional amount is taken out for a weekly average over 2900 miles (which only happens if you're team).
That excess mileage charge (if any) is refunded to you if you complete (don't walk away from) the lease.
@@JJtheTrucker on your weekly settlement where is that listed?
Under the operating expenses section, miscellaneous subsection at the bottom. Mileage charge.
decent video with some good info. you say, though, that you're netting $1600/wk after all overhead.... how much of that are you paying yourself? a common mistake i see with new owner ops and lease ops, is they consider the net, after overhead, all theirs to keep. your business needs to make money. $1600 doesn't seem to be a lot of profit to be split with "the driver"...
I set aside 20% for taxes and pay the rest of my business related bills (cell phone, XM, 401k, etc). I pay myself $2000/ month for the rest of my bills. I don't have a lot of them. The rest goes into business savings.
Since I'm a sole proprietor, I sont have to do that. Any and all profits can go straight to my personal bank account, it I prefer to keep it separate. Helps with budgeting.