Should I rent or buy my minicab?

If you are just starting out in the private hire trade then it’s recommended that you hire your minicab in the first instance whilst you get to grips with the job and perhaps still finding out if it’s really the job for you.

All vehicles used for private hire need to be licensed with the Public Carriage Office so it’s not a case of simply using any car and there are certain cost implications with either option of either getting you own vehicle licensed or paying for rental. Please note that some operators will require you to have a vehicle new than 5 years old and yet again this may influence your decision as a newer car will cost more to buy.

How much does PHV rental cost?

You can usually rent a licensed private hire vehicle from your operator and this fee will vary from operator to operator but you are looking at paying around £150-£200 per week or around £35 a shift. This may sound a lot but this will also cover MOT, upkeep and repair, insurance, and should your vehicle breakdown then you can easily get a replacement and not lose out on any income.

There are also external companies now who offer PCO rentals but often these will cater for the higher-end vehicles are are only viable for short-term rents.

How much will it cost to use my own car?

After factoring the cost of buying your vehicle, the PCO Vehicle License will cost you around £114 and is outlined on this page. You will also be responsible for taxing your car, paying for the MoT, keeping the car in good condition, and you must also be aware of the amount of mileage you will be doing which may effect the amount of repairs on your car.

If you are looking to buy a second hand car then make sure you’re aware of the new rule changes for 2012 which relates to the age of your vehicle.

Top 10 PHV Manufacturers in London

PCO Licence Vehicle HireThere are currently just under 49,000 Private Hire Vehicles operating in the Greater London area and it may be of use to see what cars other drivers choose to use before deciding on buying or renting your own vehicle.

  1. Toyota – 7845
  2. Volkswagen – 7750
  3. Mercedes – 7284
  4. Vauxhall – 5961
  5. Ford – 5946
  6. Peugeot – 1899
  7. BMW – 1341
  8. Nissan – 1298
  9. Honda – 1054
  10. Chrysler – 942

These 10 manufacturers account for 41320 of the total 48778 Private Hire Vehicles in London so they should give you an idea on what other drivers choose to drive and may influence your own choices.

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