Drop in London taxi vehicle sales paints worrying picture, but drivers need to be better prepared
- Perry Richardson
- Nov 1, 2024
- 2 min read
Updated: Nov 3, 2024
The taxi industry saw a notable slowdown in new cab sales last month, with just 158 vehicles sold in September. While this figure might once have been considered healthy, it pales in comparison to the 259 new cabs sold in the same period last year. The numbers paint a worrying picture for the sector, highlighting hesitancy among drivers to invest in new vehicles.
According to a taxi fleet trader speaking in TAXI Newspaper, the reluctance is rooted in uncertainty. Many cabbies are clinging to ageing, freehold cabs without a clear strategy for when these vehicles become unfit for service. Conversations among drivers reveal a common trend: cab owners are struggling to plan for the future, unsure of how to finance a new or newer vehicle when their current cab reaches the end of its lifespan.
One solution the trader suggested is financial discipline. Owners of older, freehold cabs could put aside the equivalent of weekly rental payments to build up a deposit. This approach would leave them better prepared when the inevitable day arrives to replace their cab.
A taxi fleet trader said in TAXI Newspaper: “I know from loads of conversations with drivers that there is an army of cabbies out there, who are running old cabs freehold, who are without a plan as to what to do when their old banger reaches the end of its life. If you ask me, the smart thing to do if you run an old freehold cab is to put the equivalent rental money away each week, then when its time to say goodbye, you have a substantial deposit set aside for a new or newer cab.
“Only last week, a driver called me trying to sell a 12-year-old cab that had just finished, he thought it was worth £4-5k and he told me that was going to be his deposit on an early TXE. He was shocked to learn that £2k would be a fantastic sale, but as a trader, it was worth far less than that to me. The fascinating bit was that he had made no plans, had no cab lined up and had not even thought about it. He seemed a bit shocked to find he was essentially unemployed.
“At the moment there are deals to be had on early TXEs. If you have a cab with a year or two left, my advice is sell it to a fleet now, get the deposit and have a plan going forward. Doing nothing and sailing along towards the cliff edge is not a good option!”
