London second hand taxi market dips in prices as new black cab sales surge

A London taxi fleet expert has provided insight which highlights a significant surge in new cab sales for March.

The expert noted that March saw the fourth-highest number of new TXEs licensed, with 234 new cabs hitting the streets, up from 225 in the previous year.

The robust sales are said to be impacting the used TXE market, as drivers trading in their first TXE are either at the end of their lease or opting for a new cab sooner. As early TXE prices fall, the market for late diesel models is also cooling, as buyers are now considering the TXE if the price difference with a TX4 isn't substantial.

Interestingly, this trend isn't as evident with Vitos, where buyers remain unconcerned about TXE prices. Nevertheless, Vito prices are dropping, especially for older cabs, aligning with the regular guide price of £3,000 per plate left, with most traders offering £2,000 per plate.

The surge in new TXE sales suggests that drivers are increasingly recognising the benefits of electric taxis, aligning with broader trends towards cleaner, more efficient vehicles. The increased uptake of new TXEs also highlights a possible shift in the market, as drivers look to upgrade their fleets and take advantage of new technologies.

The impact on the used cab market is equally telling, as prices for older models adjust in response to changing demand. The falling prices of early TXEs and late diesel models could present opportunities for buyers looking for more affordable options, while also potentially signalling a broader move away from traditional diesel cabs.

For Vito enthusiasts, the stable prices reflect a different market dynamic, where buyers are less concerned with the changing trends affecting other models. However, even in this niche, prices are dropping, particularly for older vehicles, aligning with broader trends in the taxi market.

The London taxi fleet expert said in TAXI Newspaper: “Strong sales are undoubtedly beginning to have an impact on prices of used TXEs as many of the drivers buying the new cabs are trading their first TXE, either at the end of their lease or they are cutting it short and going again with a new cab.

“As the prices of early TXEs drop, the prices of late diesels are also dropping, as buyers are very aware that if a TX4 does not have much of a price difference they may as well buy the TXE. This is not reflected as much with Vitos, as the drivers who want Vitos, are not particularly concerned what a TXE costs. Having said that, Vito prices are dropping, and certainly with older cabs, we are now back to the regular guide price of £3,000 per plate left, with most traders offering £2,000 per plate.”