For those starting out in the minicab trade we usually recommend that you rent a minicab before you buy one so that you get used to the new job and to reduce the upfront costs that come with getting PCO licensed. Any vehicle you do use will need to be a licensed Private Hire Vehicle (PHV).
After a while you may decide to either use your own car or buy a new one, but from January 2012 new rules were bought into place which imposed vehicle age restrictions and these are:
- Vehicles can be no older that 10 years from January 2012.
- From April 2012 all vehicles that are new to licensing must be no older than 5 years old.
- All newly licensed PHVs must meet the Euro 4 standards as a minimum.
So be aware of the above as if you are buying a car which already has a PHV license then it will only have a certain amount of life left in it as a minicab if it is approaching it’s 10th birthday, so a car on an ’05 plate could only be licensed until 2015.
If you’re buying a car that doesn’t have a current PHV license then that must be less than 5 years old and also meet the minimum Euro 4 emissions standards.
With the above rules, currently in 2013, it makes sense to buy a second hand car that already has a PHV license and is registered with the PCO and has held the registration since before 2012. This will allow you you buy a cheaper car and allow you to re-register the car until it is 10 years old. However, purchasing a brand new car will give you the full 10 years use as a Private Hire Vehicle (so long as you get it licensed every year). You will no doubt clock up a fair bit of mileage so the resale value of a new vehicle will decrease dramatically. Logically, all older vehicles will be phased out and all PHV’s will fall in the new desired age bracket of being no more than 5 years old. But we recommend using the current window of opportunity to it’s advantage.
Where to buy from
The operator you are working for will probably have some contacts for buying second-hand minicabs, but if you do decide to buy a car then TheVehicleSite.co.uk is a great place to look. Below is a list of current minicabs for sale on eBay that are still currently registered with the PCO. Work out whether the car has enough life left in it to justify the cost.
Advice for buying a minicab on eBay
Before you commit to buying don’t be afraid to ask questions of the seller and if possible check out the car in person and also get a car insurance quote for the vehicle so you know you can afford to insure the car if you win the auction. Most importantly make sure you see the correct paperwork to prove that the car is currently licensed with the PCO and get details so you can check it out on the Private Hire Licence Checker on the Transport for London website.