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Used black cab prices go ‘through the roof’ as fleets scramble to secure newer TX taxis
Demand for newer used black cabs has driven prices sharply higher as drivers and fleet operators compete for vehicles in a constrained market, according to a taxi trade market assessment.
The buying activity has reportedly intensified following a busy summer, with both individual drivers and fleet owners searching for available cabs. The report said demand had “pushed prices of newer cabs through the roof”, leaving some prospective buyers unable or unwilling to meet asking prices.
Established fleet purchasing patterns are also changing. Larger operators have traditionally concentrated on new VAT-registered vehicles, allowing them to reclaim VAT, while smaller fleets have been more active in the older-cab market.
However, fleets that previously avoided second-hand vehicles are now enquiring about used TXs, including VAT-qualifying examples. Some operators running older fleets are said to be considering almost any suitable taxi capable of returning to service.
The pressure is supporting unusually strong residual values for newer LEVC TXs. Rising replacement costs could also affect the rental market if fleet owners seek to recover higher vehicle acquisition and finance expenses from drivers.
The introduction of LEVC’s next-generation TX in 2027 is expected to change those market conditions. Buyers may delay purchasing a late TX or switch to the new vehicle once it becomes available, particularly if it offers a substantial improvement in technology, operating performance and warranty protection, said one fleet expert in the Licensed Taxi Drivers’ Association (LTDA) TAXI Newspaper.
The market assessment predicted that “the price of late TXEs will drop as buyers opt for the newer and warranted vehicle with whatever improvements LEVC build into it”.
The scale of any reduction will depend on the new taxi’s purchase price, availability and delivery times. A limited initial supply could allow late TX values to remain firm temporarily, while faster production and competitive pricing may place greater downward pressure on used examples.
For current TX owners, the next-generation model creates a potential timing issue. Selling before substantial numbers of new vehicles reach the road may protect residual value, while retaining a vehicle could avoid the higher cost and early depreciation associated with buying the replacement model.
