28
February
2017

Taxi finance explained

Making taxi finance easier for drivers

Taxi finance explained

The Taxi Shop has access to a number of the UK’s leading finance companies that offer competitive terms for taxi finance. While almost everyone understands that taking out a loan inevitably means paying interest on that loan, there are still one or two who complain that charging interest on these loans is somehow a ‘rip off’.

So, you need a new taxi...

Buying a new taxi is a big decision and a big investment. Unless you have got money in the bank or a stash of under the mattresses you will most likely need to arrange a loan to buy a new vehicle. You will be in good company: over 80% of all new cars, minibuses and MPVs are bought this way. Typically you will need to:

  • Pass a credit status check
  • Agree a loan amount, length of term (typically 5 years) and interest rate
  • Put down a deposit (often £1,000, but could be zero deposit, or £3,000 or more depending on your circumstances)
  • Pay a minimum monthly payment to pay off your loan.

Other ways to buy a new taxi

CASH. Use cash to purchase a new vehicle to get the very best price. You won’t be paying interest on a loan and you can negotiate a good deal.

BANK. You may get a better loan rate direct with a bank if you need to borrow to buy your vehicle. However, some taxi drivers struggle to obtain such credit. That’s where specialist taxi lenders come in.

At The Taxi Shop we treat every customer the same irrespective of their credit profile. If you know your credit profile and let us know when we discuss the finance we may be able to provide you with a quicker response based on what you tell us. Our reputation over the years has enabled us to supply many cars using finance to the taxi market.

Motor credit is simply a way to buy if you have no other options. Taking our finance is not compulsory. We are very confident we offer some of the best, realistic rates in the taxi market, and about 500 buyers each year use this route to buy a new taxi with us. Check your taxi credit for free now. Or shop around—you will find other taxi suppliers are charging higher rates than us.

What interest rates will I pay?

We know the rates we obtain are very competitive in the taxi market. There are times when we offer subsidised rates depending upon the time of the year which are favourable to those offered in the general market.

How flexible is taxi finance?

If a taxi is out of your budget, don’t worry, we can almost always find a vehicle that fits the bill. We have access to both new and used cars along with flexible finance terms that may allow you to purchase a vehicle that suits you.

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