Should I Buy A New Or Second Hand Taxi?

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Whether you’re a new taxi badge holder or an experienced driver, you’re going to be faced with the decision of whether to buy a new taxi or a second hand vehicle. Whatever you decide can make a significant difference to your income so it pays to do your research and some basic maths.

Fuel Consumption New Vs Second Hand

Minicab/Private Hire

The rise of ride-hailing apps has dramatically changed the industry in the last 10 years and for a lot of  people the Toyota Prius has become synonymous with Uber. One of the reasons for this is due to the Prius’ hybrid technology that gives taxi drivers 73.1 miles to the gallon (according to honestjohn.co.uk’s user feedback and based on the 2016 onwards models). In comparison the older 2010 model gives an average of 60.1 mpg (again based on user feedback). When you consider that you may be driving more than 35,000 miles per year, every extra mpg is going to make a difference to your profitability and in this case a newer Prius would give you a fuel saving of almost 20%!

Black Cab

The new LEVC Black Cabs have even more impressive fuel figures in comparison to their predecessors. With an 80-mile electric range, this taxi can achieve 217mpg, compared to the old diesel version’s 33.2 mpg. For longer journeys the new cab still outperforms with a claimed 36.7 mpg.

In terms of fuel efficiency, investing in a new taxi will most likely make the most financial sense – not to mention a reduction in pollution.

However, on the flip side of this, your initial investment is going to be higher and you’ll need to have a solid plan for charging your vehicle so that it doesn’t eat into your operating/earning hours.

Which holds value better?

You’re probably familiar with the concept of cars losing value as soon as they leave the forecourt and with an approximate decrease of 20%, that is a serious amount of cash. Whereas when it comes to a second-hand taxi, that 20% discount can effectively become your saving. Obviously as time goes on this saving increases so at some point you’ll be able to find a happy medium between what you can afford to pay and the quality/condition of the vehicle.

Insurance Groups & Costs

Taxi Insurance is another consideration to bear in mind as again it is can be quite a hefty expense to bear. A general rule of thumb is that vehicles with a lower insurance group tend to be cheaper to insure. The age of a taxi will have little bearing on its insurance group however it is worth paying attention to the grouping when deciding what type of taxi you should buy.

Along with the insurance group, there are a number of factors of vehicle-related factors that can affect the cost of your insurance policy, including the age, price & engine size and you may therefore want to compare prices for various vehicles before you commit to purchasing one. Arranging a no obligation quote from a panel of taxi insurance specialists is as easy as filling out the quote form via the button below and could save you from some nasty surprises.

Summary

Whether you buy a new or used taxi is a decision that ultimately falls down to you, depending on your own circumstances & needs and we hope this brief article has given you some food for thought.

Michael FooteShould I Buy A New Or Second Hand Taxi?