Rent or Buy your Taxi?


This is a question I am often asked and my answer is always the same, if you are going private hire you should rent first buy later. A lot of the time my advice falls on deaf ears for the simple reason that once someone falls in love with the idea of buying their own shiny new car then there is no telling them otherwise.

I will be honest; lot of people go and but their own car and never look back but the main reasons I say you should rent are:

If you are not in a good financial position the last thing you need in more financial commitments, renting will help you build up some cash.

You never know how you will react to driving a taxi, some love it some detest it... You will not know your genuine feelings for weeks or months. It’s much harder to quit with debts hanging over your head.

You have much more flexibility to work if you rent, if you buy a car on finance the bills don’t stop when you have a week off.

Renting often works out at the same cost as buying a new car. My Skoda cost £210 a week to run excluding petrol, to rent the same car from the operator costs £200 so you see there is not much in it. Read more on: Costs of Running a Taxi



If you are convinced you want to buy a car or you have tried rentals and it’s time to move on then I would recommend you buy a second hand car, try to keep below £5000. And either pay cash or spread term of the loan so your repayments are lower, I would aim for no more than £160 per month. After all, this will be deducted from your overall income. Try to avoid hire purchase as its very hard/impossible to get out of the agreement and they will have no sympathy if you struggle to make repayments.
It’s worth remembering that some councils require your car to me no older than 3 years.

Check out my article on 9 Ways to Make Extra Money as a Taxi Driver

20 comments:

  1. Screw buying a taxi, you have got to know haw to repair your own car for that. and you need several plates to make it worth while
    Rock on
    Hey how is the economy treating you?

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  2. The economy is giving me a damn good kicking lol! but i guess im not alone in that. I made the mistake of buying new my first time, i got into the shiny new car mentality. Rent then buy or just buy 2nd hand is the way to approach it, spoke to lots of drivers about it. :)

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  3. This post really helped, cheers mate:)

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  4. AnonymousJuly 23, 2009

    always rent least u no how much its gona cost u each week

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  5. where did you rent your car from?? what do you need to set it up??

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  6. What is the average cost of insurance?

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  7. it varies a lot like with most things, i paid 2k a year as a new driver... i guess thats average. Get loads of quotes is all i can say, i got about 7 before i found the cheapest.

    You can rent taxis from the company you work for, ask them what their rates are. You could also look into leasing or hire purchase.

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  8. This comment has been removed by a blog administrator.

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  9. to clarify the above, i meant to say you can hire from most private hire companies, they normally keep a fleet. My old firm charged £220 a week including insurance.

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  10. I bought my car second hand, a 7 seater after first renting for 6 months. I have never looked back i have the odd week where i think why do i bother, but on the whole i make plenty of cash, and i'm my own boss which forsome starnge reason makes me work harder!!!

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  11. Is it worth buying vehicles (around the £3K mark) from auctions...Getting them plated and fleet insured and renting them out to other drivers. I was considering this as new side line business...any thoughts and opinions appreciated?

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  12. I rent my taxi for £160 per week.The owner expects me to pay for new tires when needed and still charges me for the car when i am on holiday, is this the norm?

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  13. AnonymousJune 18, 2011

    best way is for man and wife to buy and share 10 hours a day make loads of cash and you keep out of the others way

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  14. i bought my car thro a finance company called PCF,it broke down,was told wrong info by peugoet dealer on warranty paid £15000 now PCF are after £26000 thro my house thats £41000 for a £22000 car need help no money who can i turn to now

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  15. I bought both my last two taxis one from an auction and the other private. Both were Ford Mondeo Diesels, cheap to run and maintain with plenty of space for luggage and passengers.

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  16. HI

    I am looking for a career as a taxi driver.I have got the phv licence from the council (Thurrock).but I am struggling to find a job and not able to find a company that rent taxi in Thurrock. can any one help me in this . Many thanks in advance.

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  17. When renting do you rent for 24/7? Or just for the shifts you work? I see some firms offer rental on 50/50 60/40 share of your takings, but this seems like a bad idea? Please advise!!! Very confused! Also.........can cat d/ cat x vehicles be used as taxis?

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  18. You generally rent for a set period, ie a week. Using a cad d will very from place to place. Best to check with your local council

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  19. i rent a few taxis out ,the insurance cost is killin it ..
    rent for about 6 months an see if you like it

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  20. Guys,I am finding a house to buy.Can you please tell me how much a house will cost which is much away from Central London.What I need is just 5 Rooms and that's it.Cam you please tell me how much will it cost to buy it?

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