London taxi market turned upside down as used cab shortage leaves garages scrambling for stock
- Perry Richardson
- 27 minutes ago
- 3 min read
The secondhand London taxi market has swung dramatically in recent weeks, according to the latest Cab You Drive column published in the TAXI Newspaper, with demand for used taxis now significantly outstripping supply.
Writing in the industry update, the columnist describes a market that has changed “very quickly”, leaving many garages unable to source enough vehicles for prospective buyers. The shift marks a huge contrast to conditions only a few weeks earlier when dealers were regularly bidding on secondhand taxis from garages and drivers.
The columnist said: “A few weeks ago, most garages had cabs stacked up against the wall and I was getting asked to bid on secondhand taxis most days of the week.” However, that situation has rapidly reversed. “This demand suddenly, almost overnight, dried up,” the column explained, adding that phone enquiries from drivers looking to sell have also largely disappeared.
Instead, garages are now struggling to secure stock as drivers choose to hold onto their vehicles. The author said: “It’s just that no one is selling right now, and the few calls I do get are from people wanting to buy one, not sell me any.”
The lack of available vehicles is also creating operational challenges for fleet operators. According to the column, some larger fleets currently have “virtually nothing to rent at the moment”, while smaller operators are being forced to rent out spare cabs from their own businesses to meet demand. The article warns that the longer-term effect remains uncertain, particularly if vehicles suffer breakdowns or are involved in accidents while replacement taxis remain scarce.
The column also points to changing behaviour among dealers, claiming some are actively trying to buy LEVC TX taxis approaching the end of their finance agreements rather than allowing drivers to make final balloon payments. The author argues this approach runs against the traditional ethos of the trade, stating: “This contradicts the golden rule and indeed the entire ethos of cabbing, which is ‘a cab driver without a cab is unemployed!’”
Drivers approaching the end of Personal Contract Purchase (PCP) agreements are encouraged to carefully assess their options rather than making rushed decisions. The advice suggests that where the outstanding balloon payment is lower than the vehicle’s market value, purchasing the taxi outright may represent the strongest financial option.
The article recommends drivers compare refinancing costs, personal loans and warranty arrangements before deciding whether to retain or dispose of their vehicle. It also argues that a taxi with a strong reliability record is likely to continue delivering dependable service, reducing the urgency to replace it with a newer model.
For those considering selling, the column identifies sale-and-rent-back arrangements as another possible route, particularly for drivers facing rising insurance costs or planning retirement. However, the author concludes with a warning against making quick decisions, writing: “Don’t act in haste. Think it all through very carefully before deciding what to do, as this will likely have a long-lasting impact on your future.”
While the column stops short of identifying a single cause, several factors appear to be driving the sudden change in the market. New taxi registrations have slowed considerably over the past year, limiting the number of nearly-new vehicles entering the used market. At the same time, speculation continues within the trade that LEVC could unveil an updated TX model in the near future, prompting some drivers to delay changing vehicles until more information becomes available.
Perhaps the biggest factor, however, is uncertainty over replacement vehicles. With rental fleets reporting limited availability and secondhand stock becoming increasingly scarce, many drivers are reluctant to sell a working cab without having another vehicle immediately lined up.
For self-employed taxi drivers, being left without a licensed vehicle means being unable to earn, making the decision to sell far more risky than in a better supplied market. That caution appears to be reducing the number of taxis coming onto the market, further tightening supply and reinforcing the shortage now being experienced by garages and buyers alike.
