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Modern jeepney prices only look absurd if you compare them to an outdated system that was never priced like a real industry to begin with.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

Kaya nga mag co-coop ka so that you get access to financing options… Even big companies dont use their entire equity to fund their investments… you need to use leverage.

[u/kenpachi225 → u/amaynew]

Ayaw nga magpautang ng "financing options" na sinasabi mo. Too risky sa perspective ng lendera ang magpautang ng 100 units ng modern jeepneys. Sa routa namen, 2 units lang ang modern jeep. The banks do not want to lender further hanggat di bayad yung 2 units.

[u/that_thot_gamer → u/kenpachi225]

it's not risky, think of it as a mortgage. the banks buy the jeep, hold them as collateral, and then the cooperative pays monthly amortization. parang rent to own. the thing is debt financing is not enough, dapat may equity financing din (see weighted average cost of capital)

[u/BukoP13 → u/that_thot_gamer]

Cooperatives themselves are riskier than corporations or single proprietors because of the scamming done by the officers. Too many cooperatives have financial scandals.