Specialist
Taxi Finance and Leasing
High quality taxi car finance solutions for UK & international clients.
We can deliver enhanced, bespoke or exclusive terms through our market knowledge.
Call us on 0203 900 4322 to discuss your requirements.
For a taxi driver, having access to the right vehicle is an essential part of the day-to-day business. To maximise custom and meet both UK national and local regulations, taxi drivers need to drive modern, efficient cars.
Purchasing a brand new taxi outright can be difficult for both self-employed taxi drivers and fully-fledged taxi businesses, requiring a significant capital investment that won’t see a return for many months, even years.
Taxi finance gives taxi drivers access to a wider range of suitable vehicles, spreading the cost of buying or leasing a taxi.
At Clifton Private Finance, we help taxi drivers and taxi businesses access the car finance you need to balance cash flow with fixed monthly payments, avoiding the need for large upfront capital.
Taxi finance falls broadly into two categories: finance used to buy the car outright, and lease agreements that have a set term for car use. Often, this is simplified as ‘taxi finance’ for buying the car, and ‘taxi leasing’ to effectively rent one.
At Clifton Private Finance, however, we understand the need for flexibility, and work with the full range of car finance and asset finance structures to provide comprehensive taxi finance that meets your specific personal and business needs. This means we match you with lenders providing:
Hire purchase is typically seen as a loan to buy a taxi. It involves an upfront deposit payment (usually approx. 10%), followed by fixed monthly payments over 12-60 months. At the end of the term, you pay a nominal ‘option to purchase’ fee, which transfers ownership to you in full.
While hire purchase has a similar structure to a personal loan and can feel the same, it is structured slightly differently and is secured on the taxi. This helps limit lender risk and means you can often get hire purchase at a more competitive interest rate than a traditional unsecured personal loan.
Hire purchase is a cost-effective way for a taxi driver to obtain both new and used taxis and can be provided to either business or personal buyers, making it a common choice for both sole-trader taxi drivers and those working as part of a larger limited company.
Finance leasing is a business solution for limited companies to obtain a taxi. With a focus on flexibility, finance lease offers a range of end-of-term options, including:
Finance lease is an excellent solution for businesses that want the freedom to make a decision later, providing immediate usage today with several choices for tomorrow.
Taxi leasing, like finance lease, typically has mileage limitations and may have additional conditions of use. Wear and tear will be considered at the end of the lease period, with excess damage incurring additional fees.
Personal Contract Purchase is a taxi leasing option for personal use, offering similar flexibility to individuals. PCP offers low monthly payments through a combination of options, including:
Sole-trader taxi drivers may look to PCP as it offers:
As a taxi leasing option, Personal Contract Purchase has set mileage limits and additional fees for damage at the end of the contract. It is best suited to part-time taxi drivers with more limited mileage or those who are able to accurately forecast their monthly mileage levels and budget accordingly.
Contract hire, sometimes called contract leasing, is a rental-style agreement where the vehicle is used for a set period before being returned to the finance company. Neither personal nor business contract hire has an option for ownership.
For taxi drivers and businesses looking for taxi car finance that comes with fixed monthly payments and additional support, contract hire may provide the best solution. However, like all taxi leasing options, contract hire may have strict mileage limits.
Contract hire is…
Like other taxi leasing options, consideration should be given to mileage limits and the potential for excess wear and tear penalties.
For businesses looking to obtain multiple taxis, fleet options provide coordinated and simplified administration, with structures that reduce the impact on working capital. At Clifton Private Finance, we can help you get the best deal on your fleet finance and offer taxi company fleet owners the support they need.
Fleet owners can benefit from:
Speak to one of our taxi finance specialists to explore your private hire fleet options.
| Finance Type | Best For… | Ownership Option? | Mileage Limits | Monthly Cost | Advantage | Consideration |
|---|---|---|---|---|---|---|
| Hire Purchase (HP) | Taxi drivers wanting long-term ownership | Yes | No | Higher | Full ownership with no mileage restrictions | Higher monthly payments |
| Finance Lease | Limited companies and fleet operators | Sometimes | Often | Medium | Flexible end-of-term options | Wear and tear charges may apply |
| Personal Contract Purchase (PCP) | Lower-mileage or part-time taxi drivers | Optional balloon payment | Yes | Lower | Lower monthly costs and upgrade path | Excess mileage charges can be expensive |
| Contract Hire | Drivers wanting predictable fixed monthly payments | No | Yes | Medium | Maintenance packages and simple budgeting | No ownership at end of term |
| Fleet Finance | Taxi companies and multi-vehicle operators | Depends on structure | Depends on agreement | Varies | Simplified administration and cash flow management | Higher overall financial commitment |
Leasing offers several advantages for taxi drivers, making it a suitable option for private hire drivers and licensed taxi businesses.
Budgeting is a key factor for both sole traders and larger businesses. Taxi car finance offers a way to manage cash flow with predictable monthly repayments and reduced initial capital spend. For many taxi drivers, lease costs may be treated as allowable business expenses, helping manage tax efficiently.
When buying a new car outright, not only is it an immediate drain on the bank account, but it also makes it more complicated to properly measure the cost of the car against the business turnover, especially for sole traders managing fluctuating monthly income.
One of the biggest concerns for a taxi company of any size is that if the taxi is off the road for any period, it has an immediate and unrecoverable impact on takings. Work is simply put on hold for the period, and cannot be made up for later.
Higher-end leasing agreements and those with maintenance contracts typically offer courtesy car arrangements, minimising downtime should a repair be required. While a replacement car is not a standard feature of all car finance, for taxi finance, it is often an optional extra that is frequently considered, reducing risk and helping maintain business operations at all times.
The quality of your taxi will have a direct impact on business levels, with a premium vehicle more likely to attract customers. Older, well-worn vehicles will reduce your customer level, especially for high-profit regular business such as airport transfers or executive hire.
Leasing offers an effective solution for the problem of older, high-mileage taxis, with a regular upgrade path that gives you access to a brand new vehicle at the end of each lease period.
In addition to the prestige consideration, regular vehicle upgrades mean:
New taxis can save money by reducing the hidden ongoing costs of running your vehicle, as well as improving your profile and giving you access to higher-value private hire work.
Taxi drivers who own rather than lease must also consider the various stresses that come with selling the vehicle once a new car is needed. This includes:
Leasing with taxi finance eliminates many of these problems, providing you with a reliable business asset rather than a complicated and worrying burden.
With a push towards net-zero across the UK, it is important that you consider the type of taxi you want to drive. With typical leasing and hire purchase contracts representing a three-to-five year agreement, you will want to ensure you position yourself correctly for both your needs and your preferred customer expectations.
An EV will offer:
However, the time taken to recharge the vehicle must be considered with a far greater priority than for personal use vehicles - if your taxi has to take a long break midway through a shift, that can result in lost income. Battery degradation, while less of a problem for many EV drivers, may be a concern for high-mileage taxi drivers later in the car’s lifetime.
Many taxi drivers find that hybrid vehicles represent a sweet spot, offering lower fuel costs without the downside of charging dependency. For drivers who mix inner-city short hops with longer drives, such as airport transfers, hybrid cars are often preferable.
Traditional petrol and diesel vehicles remain a favourite choice for those who are focused on long-distance motorway work, offering reliability when ferrying passengers between cities and airports. Many prestige and luxury vehicles used for executive hire still rely on petrol or diesel engines.
Care must be taken to research licensing restrictions in some cities and counties to ensure there are no hidden fees or clean air restrictions that would impact available work. Also, with future emission regulations uncertain, it may be unwise to commit to an ICE taxi for the long-term.
The following chart provides illustrative examples of both lease and hire purchase deals, not formal finance quotes. Estimated lease pricing is based on a typical 36-month agreement, while purchase examples are based on a 60-month term with 10% deposit.
To fully explore your options, speak to one of our taxi finance specialists at Clifton Private Finance.
| Vehicle | Type | OTR Price | Best Fit | Lease Initial | Lease Monthly | HP Deposit | HP Monthly |
|---|---|---|---|---|---|---|---|
| Toyota Corolla Touring Sports | Hybrid | £32,200–£39,100 | Private hire | £4,200 | £470 | £3,200 | £615 |
| Toyota Prius Plug-in | PHEV | £37,900–£40,000 | Private hire | £4,950 | £550 | £3,800 | £725 |
| Skoda Octavia Estate | ICE / PHEV | £29,500–£38,600 | Budget private hire | £3,850 | £430 | £2,950 | £565 |
| Skoda Superb Estate | ICE / PHEV | £38,100–£51,400 | Airport transfers, executive hire | £5,000 | £555 | £3,800 | £730 |
| Volkswagen Passat Estate | PHEV | £38,500+ | Airport transfers, large boot | £5,050 | £560 | £3,850 | £735 |
| Citroën Berlingo MPV | ICE | £24,200–£30,000 | Family and accessibility | £3,700 | £410 | £2,400 | £460 |
| Kia Niro | Hybrid / EV | £30,300–£41,300 | Private hire | £3,950 | £440 | £3,050 | £580 |
| MG5 EV | EV | £31,000–£33,500 | Budget EV estate | £4,850 | £540 | £3,100 | £590 |
| Nissan Leaf | EV | £36,000–£40,000 | Private hire | £5,650 | £630 | £3,600 | £685 |
| Tesla Model Y | EV | £42,000–£62,000 | Private hire, executive hire | £5,550 | £615 | £4,200 | £800 |
| Mercedes-Benz E-Class | ICE / PHEV | £56,900–£88,000 | Executive hire | £7,450 | £830 | £5,700 | £1,085 |
| Ford Tourneo Custom | ICE / PHEV | £46,100–£70,000 | 8+ seater minibus | £7,000 | £780 | £4,600 | £880 |
| Mercedes-Benz Vito Tourer | ICE / EV | £52,800+ | Executive minibus hire | £8,050 | £895 | £5,300 | £1,005 |
| Volkswagen ID. Buzz 7-seat | EV | £60,000–£69,100 | 7-seater EV | £9,150 | £1,015 | £6,000 | £1,145 |
| LEVC TX | PHEV | £62,700–£74,400 | Licensed taxi black cab | £9,550 | £1,060 | £6,250 | £1,195 |
Taxi drivers must take into account a number of real-world considerations that standard car finance brokers may overlook when exploring finance. Speaking to a taxi finance specialist can help ensure that you get the best deal for your circumstances.
It is always worth discussing taxi finance with your accountant to ensure you are set up in a way that best optimises your tax obligations. As both the monthly payment and the running costs associated with the car are business expenses, taxi companies will want to ensure that the commercial use is properly recorded.
At Clifton Private Finance, we work with the whole UK marketplace of specialist taxi finance lenders who understand the complexity and fluctuations of self-employed income. With a comprehensive evaluation of your income and affordability, we can help present your application to the right lenders to improve your chance of approval.
If you are concerned regarding a bad credit report, collecting the information early will help our advisers with our dedicated pre-approval process that assesses your finance suitability without impacting your credit report with a full application credit check.
Lenders will want to see your most recent self-assessment forms (SA302), as well as current bank statements and business accounts. Speak to your Clifton Private Finance adviser to learn more about your credit file and the options that exist for bad credit taxi finance applicants.
The taxi finance specialists at Clifton Private Finance are here to help you get the funding you need to purchase or lease your taxi. With decades of experience and established relationships with specialist UK lenders, we are expertly positioned to help you navigate your finance application and get the best deal for your situation.
Whether you’re looking to purchase your first prestige and luxury vehicles to start an exciting new career or are looking for a premium vehicle as a licensed taxi for high-value clients, we can help. Book a consultation with a Clifton Private Finance adviser today.
Call us today to discuss your requirements on 0203 900 4322
I approached Clifton Private Finance to help me get a mortgage as an Expat working in the Far East. I would normally 'cut out the middle man' on something like this and try to get myself a deal directly with the banks, but I am now sold on the broker concept and wouldn't hesitate to use Clifton Private Finance again. There were a number of complicating factors such as being an expat, the stamp duty holiday, the sheer amount I wanted to borrow and the fact I wanted it all wrapped up before the Stamp Duty holiday ended. It is clear to me now that the relationship that brokers have managed to foster with their banks means they can simply pull levers and make stuff happen that us ordinary folk cannot. Put simply, they are worth every penny, will take most of the stress out of the lending process, and seem to have access to deals that you just won't find on the internet. Thank you George and Jan for all your hard work!
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The team at Clifton Private Finance has been outstanding, not only in helping me to obtain a mortgage on a slightly unusual home, but also in continuing to provide support and liaise with the lender and solicitors through to completion. Thank you for making the process of buying my first home much easier.
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Sam O'Neill, and the new lender he identified for me, worked tirelessly together using my time constraints, to make sure my mortgage application was completed on time. They are a brilliant company to work with, fast, efficient, open and transparent from the very beginning, and turned a seemingly impossible situation into a viable one. Sam was brilliant throughout the whole process and I would highly recommend him, and his colleague Helen, to anyone without hesitation, I cannot speak highly enough about them.
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I was incredibly lucky to find Clifton Private Finance after a search on line as their service has been more than exemplary. My point of contact was Sam 0’Neill and he was happy to help at every stage during the application of the bridging loan, making a stressful process much easier to deal with. He was always available by phone or email and gave prompt answers to queries I had as well as always getting back to me when he said he would. That to me is excellent customer service and I cannot thank him personally or the company enough for the support they have given me.
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