Taxi finance for taxi and private hire firms
Yes, your business can get finance for a taxi or private hire car. Most of the finance we arrange is hire purchase. We work with over 120 lenders, and there is no fee to apply.
Written by Martin Mackenzie, Sales Director. Checked .
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Taxi finance. In this video we are going to discuss taxi finance. A taxi is the car that earns your living. So it is a business asset. We arrange business finance for it. We go to lenders who lend against working cars. Most of it is hire purchase. A finance lease lets you use the car without owning it. You often put down a deposit of 5 to 10%. No deposit at all is quite common too. A deposit can be cash. Or a car you trade in when you upgrade. We arrange finance on saloons, estates, people carriers and minibuses. Cars for wheelchair users, hybrids, electric cars and chauffeur cars too. Taxis waved down in the street, and cars booked ahead: our lenders finance both. Most taxi finance runs for 2 to 5 years. Refinance can release money from your cars: from one car to a whole fleet. It works on cars you own outright. And on cars still on finance. Some join a few finance plans into one. Lenders often want to see three months of business bank statements. And a set of year end accounts. Not got them? Lenders can often work around that. Our website has a free checklist of what lenders ask for: print it and tick it off. Apply online with Donnie, our AI agent, 24/7. Or call our team on 01463 652 653. Thanks for watching!
Apply through our in house AI agent, Donnie
Which taxis and private hire cars can you finance?
We arrange taxi car finance and private hire car finance for new and used cars of all kinds. That includes wheelchair cars, hybrids, electric cars, minibuses and chauffeur cars.
- SaloonsHybrid Corollas, Priuses and the like
- EstatesRoom for the airport run
- MPVs and people carriersSeven seaters and tour cars
- Wheelchair-accessible vehiclesWAVs, new and used
- Hybrids and electricPlug-in and self-charging
- MinibusesSchool runs, groups and tours
- Chauffeur carsThe executive end of private hire
- Fleet refinanceRelease cash from cars you own
What is taxi finance?
On hire purchase, the car is yours once the last payment and a small fee are paid.
We are a broker, not a lender. A broker does the asking for you. We look across our panel of over 120 lenders for the ones that fit your business. Then we take your case to them for you.
It costs nothing to apply. The lender pays us, only once your finance is in place. We are also members of the NACFB, a UK group for finance brokers.
Can I finance a car for a taxi?
Yes, you can finance a car for a taxi, as long as the finance allows taxi work.
Our lenders finance working cars. That covers hackney carriages you wave down, and private hire cars you book ahead.
Does my finance allow taxi work?
Not every finance agreement allows taxi work. Some do not allow a car to be used that way.
Turned down somewhere else? We can try other lenders. It costs nothing to apply.
Why do lenders say no to a taxi?
In our experience, most taxi finance is turned down for one of three reasons:
- An unusual car. A used import from Japan is one example. It is called a JDM car, made for Japan's own market. Few lenders will take one.
- A price that looks wrong. The dealer's price is far from what cars like it sell for.
- A problem with the car's past. The lender runs a check on the car, called an HPI check. It can show a problem, such as old damage.
Taxi work and the car's age should not be a reason to say no. We know which lenders take taxis, and how old a car they will take. We only send your case to those lenders.
How much deposit do I need for taxi finance?
Most lenders look for a deposit of 5 to 10%. No deposit is possible, and quite common. Most taxi finance runs for 2 to 5 years.
How old can the car be?
Most lenders want the car to be 10 to 12 years old or less at the last payment. Some top lenders want 5 to 7 years. Others go up to 15.
- Deposit
- Often 5 to 10%
- How long
- Usually 2 to 5 years
- Car age at the end
- Usually 10 to 12 years
Is there a mileage limit?
Usually not, when there is no balloon. Some lenders set a cap of 100,000 miles or more.
Can my old car be the deposit?
Often, yes. A deposit can be cash, or a car you trade in when you upgrade.
A real example of a hire purchase agreement completed by Mackenzie Commercial Finance
Completed by Martin Mackenzie, September 2026.
These are real figures from a real agreement we completed for a customer. The customer was a limited company buying a used asset from a dealer.
- Price
- £43,998 including VAT
- Deposit
- £8,799.60 (20%)
- How many months
- 60
- Monthly payment
- £714.38
- Documentation fee
- £280
- Option to purchase fee
- £80 + VAT
- Total cost of finance
- £8,024.40
- Total amount paid
- £52,022.40 (+ VAT on the £80 fee)
This was business finance for a company. It was not regulated consumer finance. Every case is different. This is not a quote.
Hire purchase, lease, loan or refinance: which fits a taxi?
Hire purchase means the car is yours at the end. A finance lease lets you use the car without owning it. A business loan can pay for a car lenders will not finance. Refinance raises cash from cars you have.
| Type | What it is | Who owns the car | Suits a firm that |
|---|---|---|---|
| Hire purchase | Pay each month, then a small fee | Your business, at the end | Wants to own the car |
| Finance lease | Use the car for a set time | The lender | Wants to use it, not own it |
| Business loan | A loan to the business, paid back each month | Your business | Is buying a car lenders will not finance |
| Refinance | Cash raised against cars you have | Your business, once it is paid | Owns its cars, or is still paying for them |
When does a business loan suit a taxi firm?
Some cars are hard to finance. A used import from Japan is one example, such as a JDM Toyota hybrid. Few lenders will take one. A UK-spec Toyota is fine.
Is your business sure that is the car it wants? Some of our lenders offer business loans that are not secured against the car. That means the loan is not tied to the car.
What is a balloon payment?
A balloon is a bigger last payment. It lowers each monthly payment. On business hire purchase, the balloon is not a choice at the end. There is no right to hand the car back.
At the end, you pay the balloon. Or you refinance it, if a lender will. Or you sell the car to clear it.
The lender also adds rules, like a mileage cap. And you pay more interest, because what you owe comes down more slowly. In our experience, balloons are used more on high-end cars than everyday ones.
Can my firm rent its cars to drivers?
Yes, if your agreement allows it. Some of our lenders allow long-term sub-hire. Sub-hire means your company rents its cars out to drivers.
Until the car is paid off, it belongs to the finance company. So you can sub-hire it only if the agreement allows. Your business is free to set up rent to buy with a driver only once the car is paid off.
Can I get taxi finance with bad credit?
Yes, we help taxi firms with bad credit get finance. It is often about how the case is set out and explained to the lender.
We have seen one lender say no, and a better-suited lender say yes. Tell us about CCJs (court debts) or missed payments at the start. Only a lender can say yes, and we never promise one.
Who can get taxi finance from us?
This page is for taxi drivers and taxi firms. It is also for private hire drivers who work through Uber and other apps. Run chauffeur or executive cars, such as a Mercedes V-Class or S-Class? Please speak to us.
Limited companies and LLPs (limited liability partnerships) can get taxi finance from us from £15,000. We set no top limit of our own. Under £15,000? Please speak to us.
Sole traders and partnerships, like a taxi driver working for themselves, can get it for over £25,000. For £25,000 or less, we help them only in IV postcodes. We meet face to face, and they sign at our Inverness office. That is our own business choice.
Our team works from our office in Scotland, with taxi and private hire firms across Scotland and the whole UK.
Just starting with Uber, and need £25,000 or less?
Outside IV postcodes, we cannot arrange £25,000 or less for a driver working for themselves as a sole trader.
Some new drivers rent a car first, from a local firm that supplies cars for app work. Many hackney drivers start by renting from a taxi firm, too. Once the business can show it pays its way each month, finance may suit. This is information, not advice.
Do I need my taxi licence before I apply?
You need a full UK driving licence. The lender will usually want to see it as ID for a car. The lender will not always ask to see your taxi licence.
Can I get PCO car finance in London?
Yes, we arrange PCO car finance for private hire firms in London. PCO cars are private hire cars licensed by TfL (Transport for London).
TfL sets the rules for which cars it will license. Check TfL's taxi and private hire pages before you choose a car.
Who gives taxi licences outside London?
Outside London, your local council gives taxi and private hire licences. Each council sets its own rules for the car. GOV.UK explains vehicle licences.
We arrange taxi finance across the whole UK, and many lenders let you sign online.
What happens when I apply for taxi finance?
You apply in under 5 minutes. Our team gets back to you within a day. After that, it depends on the lender and your case.
You apply
Apply online with Donnie, our in house AI agent, at any time. Or call us, Monday to Friday, 9am to 5pm.
We look and ask
We read what you send. Then we ask the lenders that fit your case.
You sign
You see the offer and what it costs before you sign. Then the lender pays for the car.
What will lenders ask me for?
Lenders often want 3 months of business bank statements and your latest year-end accounts. The first time, they want ID and proof of address for the directors too. Pick the free checklist that fits you. Print it, and tick it off.
- 3 months of business bank statements, every page
- Your latest year-end accounts. Not got them? Lenders can often work around that.
- Photo ID and proof of address for each director
- A quote or advert for the car, or its registration and mileage
How has taxi finance worked for other firms?
A private hire firm in the Highlands bought a minibus at auction. We set up the finance the week before.
Is taxi finance a good idea?
Taxi finance can be a good idea when the car earns more than it costs each month. Check the total cost before you sign, not just the weekly or monthly figure.
| Good points | Watch out for |
|---|---|
| You get the car now, and keep your cash | You pay interest on top of the price |
| Payments are set at the start, so they are easy to plan for | If the payments stop, the lender can take the car back |
| On hire purchase, the car is yours at the end | A balloon lowers payments but costs more overall |
| Refinance can release cash from cars you own | The lender's own fees, to set up and to own the car at the end |
What should I check before I sign?
- The total you will pay, not only the weekly or monthly figure.
- That the agreement allows taxi or private hire work.
- Any balloon, and any mileage cap that comes with it.
- What happens if you pay off early.
- If anyone gives you a figure, ask for the lender's approval reference. A real approval has one.
What if finance is not right for me?
If the payment would be a stretch, wait. Save a bigger deposit, or look at a cheaper car. Saying no is always fine, and you are always welcome back.
Taxi finance questions
Can I get a taxi now and pay later?
Yes. Your business gets the car now and pays for it each month.
How long can taxi finance last?
Usually 2 to 5 years. We have arranged it from 12 months to 7 years.
Does applying for taxi finance mean a credit check?
Applying to us is not a credit search. Once you agree, we run a light credit check on your company, often known as a soft search. Each lender then does its own.
Can I pay off taxi finance early?
Yes. The lender adds up what is left and usually takes some off. If you may pay early, tell us first.
Can I refinance my taxi?
Yes. Refinance can release cash from cars you own outright, or cars still on finance. Most lenders lend up to 80% of what the car is worth.
Is a balloon on hire purchase the same as PCP?
No. PCP means personal contract purchase. It is car finance for people, not for businesses. At the end of a PCP, there are a few choices.
Hire purchase with a balloon is a business product. The balloon must be paid at the end. You pay it, refinance it if a lender will, or sell the car to clear it.
Can I finance an electric or hybrid taxi?
Yes. We arrange finance on electric and hybrid taxis and private hire cars, new and used.
Can you finance a whole taxi fleet?
Yes, from one car to a whole fleet. We can spread a big fleet across several lenders.
Can I claim back the VAT on a taxi?
Ask your accountant, because VAT on cars has its own rules. A broker cannot advise on tax. GOV.UK explains VAT on cars.
What insurance do I need for a taxi?
You need insurance that covers taxi work. It is often called hire and reward cover. Get a quote before you apply.
How do I apply for taxi finance?
Apply online with Donnie, our in house AI agent, at any time, or call us. We will tell you straight what is possible, and what happens next.
Use an AI assistant? It can ask Donnie questions for you. It finds him at /llms.txt and /api/agent.
How do you get paid, and what does the finance cost?
The lender pays us a commission, only once your finance is in place. There is no fee to apply, and no fee up front. Apply by phone, by email, or online with Donnie, our in house AI agent, in under 5 minutes.
If you stop before your finance is in place, you owe us nothing, unless you agreed the rare inspection fee. The lender pays our commission to our principal, the firm we work under. It is already inside any figures we give you.
Most lenders pay a share of the amount borrowed. It is up to 10% of what you borrow, and often less. It depends on the lender. You see it before you sign. Lenders pay different amounts, so the one we find may not pay us the most, or the least. A dealer who arranges finance is a broker too.
Lenders' own fees vary. As a guide, a fee to set up the agreement is about £100 to £500. It is often paid with the first payment. Some charge about £30 to £50 a year. On hire purchase, about £100 to £300 to own the asset at the end.
Can I apply at any time, from anywhere in the UK?
Yes. Donnie, our in house AI agent, takes applications 24 hours a day, 7 days a week. He answers your questions too. Our office is in Scotland, and our team works with businesses across the whole UK.
Donnie is powered by Anthropic's Claude. He is built so other AI agents can talk to him. So your own AI assistant can ask him questions for you. How AI assistants talk to Donnie