More taxi drivers are looking at used vehicles rather than new when it comes to replacing them.
Higher vehicle costs, rising taxi insurance premiums and higher maintenance and repair costs mean many feel priced out of the new-car market.
As a result of this, vehicle suppliers have seen a big increase in inquiries from taxi and PHV drivers looking for nearly new and used vehicles.
Running costs
While taxi and PHV drivers continue to feel the squeeze of high fuel prices and general cost of living, they are still looking for efficient, good-quality vehicles that will meet the needs of their taxi business.
But with rising costs, extra competition and only minor increases to fare prices, they are having to make savings when it comes to replacing vehicles.
Used vehicles have always been popular in the trade, but as prices for new vehicles continue to rise, there is likely to be a much bigger demand for used and nearly new cars.
Many drivers will be looking for cars that are reliable and meet licensing requirements, with low running costs and they won’t have any problems getting parts for.
Taxi drivers’ choice
A used vehicle that has been maintained to a high standard can be savvy buy for a taxi driver looking to replace their current vehicle. Mileage and service history, as well as manufacturer, make and model are key pieces of information that taxi drivers should consider when buying their next car. A Good car will keep them on the road and earning.
We’ve previously looked at the Top 5 Cars for PHVs in 2026 which outlines the key features of some of the most popular private hire vehicles currently on the road, using information and data from drivers who own these vehicles themselves.
Rising demand
There is concern that targets for greener motoring and rising demand for more affordable used vehicles will affect the second-hand market.
Society of Motor Manufacturers and Traders chief executive Mike Hawes called for targets for new vehicles, especially EVs, to be reassessed.
He told Car Dealer: “As the used market is where most people buy their cars, plentiful and affordable supply is vital. However, increasingly unrealistic targets in the new car market risk constraining that supply and pushing up costs.
“Urgent regulatory reform is needed to deliver a transition that works for every driver.”
Marc Palmer, Head of Strategy and Insights at Autotrader, added that dealers will have to adapt to source used vehicles.
He said: “The pandemic gap is moving through the market, and we expect a sharp drop in the availability of five-seven-year-old vehicles over the next couple of years.
“The demand is there, and on our platform the audience is there, but the cars might not be the ones you’re used to selling.
“Success will come to those who use data to identify the new pockets of profit — diversifying into different ages and fuel types — rather than waiting for the old supply chains to return.”
As drivers continue to feel financial pressure, shopping around for the best deal for their next vehicle is becoming increasingly important, as well as factoring in running and maintenance costs.
Taking the time to compare options and weigh long-term costs is the best way for taxi drivers to find a car that suits both their needs and budget.
