Buying a second hand Private Hire Vehicle

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.

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.