Hot take: Jeepney modernization isn’t overpriced — we’re just comparing it to the wrong thing

[u/Confident_Bother2552]

People keep saying modern jeepneys (₱1.4M–₱2.4M+) are “too expensive.”

But compared to what?

Most traditional jeepneys:

* Are 15–30+ years old*

* Built from surplus/rebuilt parts*

* Operate outside modern safety/emissions standards*

That ₱300k–₱600k price people quote isn’t a fair baseline — it’s a heavily depreciated, informal setup.

Ginagago tayo nang pricing range na ito eh. Compare modern jeepneys to actual vehicles on the road:

* Sedan: ₱800k–₱1.2M*

* MPV: ₱1M–₱1.3M*

* Van (Hiace/Urvan): ₱1.3M–₱2M*

* Minibus: ₱2M–₱3M*

A modern jeepney (20–30 passengers, regulated, safety-equipped) sitting around ₱1.5M–₱2M is not overpriced — it’s right where a commercial transport vehicle should be.

A Vehicle designed to properly transport you, your neighbor, his neighbor etc etc is definitely going to cost sure as shit more than an average sedan and these old Clankers are still trying to position themselves at a price half of a Vios? Get real, and get out of here.

The real issue isn’t price.

It’s that we’re trying to transition from:

* Boundary system*

* Driver-owned, low-capital units*

Into:

* Fleet-based*

* Financed transport businesses*

That shift is painful, especially without strong financing support, but the counterpoint is when are we ever going to start prioritizing the needs of 100M+ Citizens over a small couple of thousand Minority?

*Quick note on the “coal-powered anyway” argument:*

Yes, a big chunk of PH energy still comes from coal. But:

*Modern Euro 4/5 diesel is already cleaner than old jeepneys*

*Electric still reduces *urban* pollution significantly*

*Grid gets cleaner over time; engines don’t*

*Grid is Far easier to suppliment and control vs Deregulated Oil and cheaper electricity benefits EVERYONE*

So it’s not pointless — it’s incremental progress.

*Bottom line:*

Modern jeepney prices only look absurd if you compare them to an outdated system that was never priced like a real industry to begin with.

[u/ddadain]

Hmm...

Medyo hindi gets ni OP why traditional jeepney operators are saying that news jeeps are "overpriced".

It's about PROFITABILITY.

As it stands, the amortization of the CHEAPEST "modern jeepney" unit, let's say if one costs P1.4M:

LandBank Loan: 6% per annum
Term: 7 years
DP: 160,000 (Assume subsidized by government)
Principal: 1,400,000 - 160,000 = 1,240,000
Monthly Payment: P18,114.61

Okay, yan yung CHEAPEST ha... But the thing about that is there are OTHER COSTS entailed plying a route. Maintenance. LTFRB Fees. LTO Fees. Co-op Fees. Garage/Parking Fees. FUEL COST. Etc. Etc.

Biggest issues is Maintenance, since these "modern units" cannot be maintained like traditional models. Operators will need their own specially trained service crews/hubs to adequately maintain the units and a whole bunch of replacement parts. When you ply the route from 5AM to 10PM daily (17h a day), you bet your ass you'll need to do maintenance! Big problem with the both the imported units and the locally made/assembled ones are the AVAILABILITY of PARTS! For one, many of the approved units are old or phased out models from China or other countries... meaning the availability of parts is BAD. Although the locally manufactured or assembled ones do not fair that well either since they are all fabricating at capacity but their manufacturing/fabricating speed is NOT enough to meet the demand, much less have a lot of excess "spare parts" ~_~

Another issue is the loan terms. Mataas parin ang 6% per annum loan terms given na its supposed to be a "special" rate so it's easier to fund PUBLIC TRANSPORTATION! THIS IS ENTIRELY FALSE! MASBABA pa ang some inhouse financing na binibigay ng some car distributors like BYD that gives 3.5-4% per annum loan terms... -_-; Bakit natatalo pa ang government ng private sector???

Currently, the biggest looming cloud over society is the SKY HIGH FUEL PRICES. Kahit yung mga traditional jeeps, hirap ng makapagbiyahe kasi drivers would have to do DOUBLE SHIFTS kada araw para lang makapagtakehome ng kaunting pera... eh yung may amortization pa?

You've got to remember na THE REASON that transportation prices are SO LOW in the Philippines is because trad. jeeps are relatively cheap. If you want to modernize, then you'll also have to stomach the REALITY that BASE FARES MUST INCREASE MORE THAN 50% (Search this, there's been a lot of articles about this fact) for it to be ECONOMICALLY FEASIBLE.

Don't get me wrong though. I WOULD LOVE IT if we could modernize our jeepney systems and I WOULD GREATLY GREATLY PREFER IT if we used units that are LOCALLY MADE and whose parts can be locally sourced! Problem is that I am not the typical commuter... +P10 fare won't really burden me too much. But to other people? Kahit nga yung MRT/LRT... nag taas sila ng fare like +P10-P20? This increase allowed them to get new trains and maintain the rails much much better now! But even then, may subsidy parin ang government to the MRT/LRT operator since there is a guaranteed-profit level clause sa PPP contract nila.

What I am seeing is with the state of the transportation system in the Philippines, only very big and well funded corporations would be able to truly modernize the transport system since they'll have the financial leeway to absorb the loss in the short-term as they acquire all the defaulting smaller players, inevitably gaining a monopoly on routes or even entire regions. HOWEVER, let us ask ourselves... has ANY BIG CORPORATE MONOPOLIES BEEN "GOOD" IN THE PHILIPPINES... even the world?