Insurance Fuel cards Vehicles Hire Driver perks Card payments Tax (MTD) Accidents News Driver deals →

Choosing a taxi or private hire vehicle

Picking the right vehicle is one of the biggest decisions you'll make as a professional driver. Here's an honest guide to what matters — running costs, licensing, going electric, and where to look.

Built for taxi & PHV work
Honest, independent guidance
No car? See our hire options

Before you buy

What to think about when choosing a vehicle

A taxi is a working tool — it needs to earn more than it costs. These are the things that matter most.

Running cost per mile

Fuel or charging, servicing, tyres and insurance all add up fast at high mileage. A cheap car that's thirsty or unreliable can cost more than a pricier, efficient one. Work out pence-per-mile, not just the sticker price.

Licensing rules

Your local council sets the rules — vehicle age limits, emissions standards, wheelchair access, number of doors and more. Always check your authority's requirements before buying, as they vary widely across the UK.

Clean air & ULEZ

If you work in or near a Clean Air Zone or ULEZ, a non-compliant vehicle could cost you daily charges. An electric or compliant vehicle avoids these — often the single biggest factor for city drivers.

Reliability & space

Downtime means lost earnings, so reliability matters more than for a normal car. Think about boot space for airport runs and comfortable rear seats for passengers — common reasons drivers pick hybrids and estates.

Buy, finance or hire?

Buying outright avoids ongoing payments but ties up cash. Finance spreads the cost. Hiring a ready-licensed vehicle suits new or part-time drivers who don't want to commit — see our vehicle hire guide.

New vs used

A used vehicle costs less upfront but may need more maintenance and could be closer to a council age limit. A newer one costs more but tends to be more efficient, reliable and compliant for longer.

Should you go electric?

For many high-mileage taxi and private hire drivers, an electric or hybrid vehicle can cut running costs significantly — though it depends on your mileage, charging access and local rules. Here's the general picture.

Lower
Fuel cost per mile — home charging is far cheaper than petrol or diesel
Fewer
Moving parts than a combustion engine, so servicing is often cheaper
£0
Clean Air Zone & ULEZ charges for zero-emission vehicles
Grants
Available on some new EVs and home chargers — see our EV grant guide
Read: is going electric worth it? →

Where to look

Finding your next vehicle

We're building relationships with vehicle suppliers to bring CabNation drivers genuine deals. In the meantime, here's where drivers typically look — do your own checks and compare before committing.

Taxi-specialist dealers

Dealers who focus on the taxi trade understand licensing and often supply purpose-built hackney vehicles and popular PHV models.

Main & used-car dealers

Large dealer groups carry the hybrids and EVs popular for private hire, often with finance options. Compare total cost, not just monthly payments.

Rent or rent-to-buy

Not ready to buy? Renting a ready-licensed vehicle lets you start earning straight away. See our vehicle hire page for PCO and private-hire rental providers.

CabNation provides independent guidance and may earn a commission if you use a partner we introduce. We don't sell vehicles or provide financial advice — always confirm specifications, pricing and licensing suitability directly with the supplier.