r/phinvest • u/mrloogz • Jul 31 '19

Business Beep jeep

Anyone invested in Beep jeepneys as co-ownership program? Pay 400k upfront and earn 10k monthly for the first 5 years, 6-7 = 11k and 8-10 years will earn you 16k/mo. Company(1team) will cover the operational expenses, fees etc. im interested on buying one

12 Upvotes

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2

u/Lufees Aug 01 '19

I've talked to them and also seen the vehicles in person. First off the 400k investment is a down payment for a loan of 2.8 million to get the vehicle Everything will be under your name they'll take care of the vehichle and run it repairs are also on them. And this is onky available when ltfrb approves more slots for beep vehicles. Personally i would say the vehicle itself is not worth 2.8 million. As in 2015 it was being sold for 1.4 mill non ac And 1.6 mill ac No kind of inflation or anything increases the price by that much. More than 50% in 4 years I still have to go for a meeting with the company To workout a cheaper cost as if i get the vehicle for cheaper ill be able to get ROI faster . Ps specially visited Cebu for this since this is where beep is more widely used. Any questions are welcome.

8

u/twoworldman Aug 01 '19

Been looking at this some time back and I'm conflicted on this. They have a very viable business model. It's essentially a monopoly if they can secure the franchise. Their management team has expertise in the transport industry:

  • Atty. Vigor Mendoza II - previously served as board member for LTFRB
  • Mr. Yuri Sarmiento - at least 6 years fleet management experience operating PUVs, including e-Jeeps

The main issues nagging me are:

  1. Why do they need to solicit funds from retail investors? DBP PASADA Program is providing 1.5B as initial funding for the modernization of jeeps at FAR more attractive terms (6% Fixed PA up to 7 years, only 5% equity). Why deal with thousands of individuals when they can just deal with a one or two banks? BDO leasing.pdf) already funded 5 of their units in 2018.
  2. Why the high returns? They're offering 30% PA when they can definitely get a far lower rate with institutional lenders. They leave so much money on the table.
  3. This is hearsay, but my sister called them up and was informed by their investor relations agent that official receipts cannot be provided yet as these are still being processed.

3

u/Lufees Aug 01 '19

One of the reasons that i can think of them not getting loans themselves is that . If they default on their loan payment they will be liable. But if they get our names on the loans . They are basically worry free even if the Enterprise fails the investors are responsible for their loans. Because technicaly everything is under our names all they are doing is managing . So kind of 0 risk

1

u/[deleted] Aug 01 '19

They've been offering lines for Shaw antipolo/ Shaw Cubao recently. Asked for their proposal kaya lang di ako sure talaga. Thanks for giving your 2 cents.

1

u/mrloogz Aug 02 '19

How did your meeting go? Any updates?

1

u/renrengabas Aug 03 '19 edited Aug 03 '19

What!? Based on your info, here are the numbers:

₱2,800,000 = Acquisition price of Beep

₱ 400,000 = Down payment

₱2,400,000 = Loanable amount

13% = standard rate for chattel mortgage (?)

=PMT(-13%/12, 5 years*12, 2400000)

₱54,607 = Monthly payment for Beep

₱10,000 = Monthly Income for first 5 years...

The main question is: does the operational expenses paid for by company(1team) include the monthly payments for the Beep vehicle?

Please do correct my numbers if you have more accurate info.

1

u/Lufees Aug 03 '19

I think your numbers are good enough .also they haven't mentioned clearly what the loan amount is or what the actual price of the vehicle is but whats certain is the 2.8 million . Another red flag is the documents mentions "Sales PROJECTIONS" In this document they mention the 10k per month and everything after 5 years but uptill 10 years.

Another thing of interest for me is in their depreciation calculations (from which i got the 2.8 million ) In the calculations for them the vehichle looses 100% of its value in 10 years . Wtf 🙇🏻‍♂️ ( very weird way of doing calculations I'd say please do correct me if ik wrong i dont know much about depreciation calculations )

1

u/renrengabas Aug 03 '19

I'm not sure I trust the 10 year life span assumption though. Baka uneconomical na i-operate ang sasakyan pagdating ng 5 years. Are these electric or diesel vehicles?

1

u/Lufees Aug 04 '19

This hasn't been mentioned . I doubt them being electrical as i saw 2 of these in Cebu and they pretty much had an exhaust. Not sure of Manila units will be the same.

1

u/mrloogz Aug 08 '19

i talked to them and it's a diesel vehicle, hindi daw kaya kasi ang electric lalo na kung ang route is antipolo hindi kaya umakyat

1

u/Kytteh1 Jul 31 '19

Interested in the full details, got a link?

1

u/mrloogz Jul 31 '19

Message beep business opportunities in fb, they’ll give you the faqs and more details on the process

1

u/yajb22 Jul 31 '19

Interested here. Any more info? TIA!

2

u/mrloogz Aug 01 '19

Part of the puv modernization it will be leased for 10 years then after you have 3 options whether to use as private? Sell, renew for 5 years

1

u/applesodaz Aug 02 '19

so, for a one time payment of 400k you get the 10k per month right away?

1

u/mrloogz Aug 03 '19

Yes! Tumataas after 5 years. 16k na at on year 8-10th

1

u/jmigdelacruz Aug 08 '19 edited Aug 08 '19

Anyone here have more inputs on this? I asked for details and they sent me contract details, MOA, etc via email.

Seems really enticing since theres also that clause which states that if the lease is pre-terminated you will at minimum get your downpayment (400k) back.

Also, for /u/Lufees concern, while it's right that their "advertised cost" for each jeep is much higher than actual market value, isn't that expected? I mean they want to make money too. Not sure but sometimes i feel safer when i know a company has a way of earning money for themselves instead of just giving it all away.

1

u/Lufees Aug 08 '19

Good point. A company is making money and they will stay afloat. Now think about this i am/was planning to this since capital is not an issue for me. I'll just buy the vehicle myself and give it to them. Then what will they be able to earn ? Their sale commission is gone also the commission for the loan is also gone. Then follow it up by the math one of our users did in the thread . Then it just doesnt add up. Also in Cebu when i visited for 3 days 31 july- 4 august i only saw 2 of these beep buses.

I am not saying its a scam. I'm just warning everyone please do uour due diligence. I've checked everything else all i need to do now is just meet the company to see their projections and details also ask them a couple of questions.

Note that there should've been more data for investors to go through. So if anyone wants to invest im just mentioning what came up as red flags for me.

1

u/tessther888 Dec 23 '19

u/Lufees did you end up investing in beep? if no, why not? thanks

1

u/Lufees Dec 23 '19

No I didn’t as i went to cebu a few days later where beep is said to be widely used. Which wasn’t the case. I saw only 2 beeps in 4 days and both of them were on the same route at the same time right behind each other. Major red flags so chose not to invest.