London taxi drivers turning their attention to second-hand electric market to lower costs
London’s taxi trade ended 2024 on a concerning note, with December recording just 36 new cabs joining the fleet—the lowest monthly figure since the Covid-19 pandemic.
The latest licensing figures show the total number of cabs at 14,537, up slightly from 14,485, despite the slump in new vehicle sales. This suggests a shift towards second-hand TXE purchases as more drivers replace ageing taxis without investing in brand-new models.
Drivers moving from older TX4s to TXEs report a significant step up in comfort and efficiency, but the biggest barrier remains the upfront cost. However, with finance deals, warranties, and scrappage schemes now available, many are seemingly choosing to buy second-hand rather than return to renting. Those able to home charge, particularly on night tariffs, can save over £100 a week on fuel alone, making the switch financially appealing.
A London taxi fleet expert wrote in TAXI Newspaper: “December was certainly a disappointing month for cab sales with only 36 new cabs joining the ranks. That represents the worst month since Covid!
“We can only hope that 2025 sees an improvement. We need to see more cabs licensed than the number ageing out or leaving for other reasons, to put a much- needed stop to the worrying downward trends in driver and vehicle numbers we continue to see.
“As we all know, there are lots of reasons for these poor sales figures, but a dive into the detail does give an inkling of what is going on. The actual number of cabs licensed is now at 14,537 up from 14,485, which would appear not to make sense at first glance because only 36 cabs were sold. However, I think it reflects the increase in the number of second hand TXE sales, as many drivers losing cabs to the age limit can see the financial savings in buying second hand.
“Swapping from an old TX4 into any TXE, is a moment of epiphany for many who are not used to the silence, comfort and having a suspension that works. The only drawback is the cost of purchase.
“With pre-owned TXEs now available with warranties, scrappage and finance deals, it's an option that many are taking up in order to remain mushing rather than returning to renting. If you can home charge, especially if you get a night tariff from your energy supplier, the fuel savings can be over £100 per week. Add the less frequent and cheaper servicing and it becomes a ‘no brainer’ for many.
“The downside of this is that second hand TXE prices have steadied, whilst the last of the diesel TX4s have dropped in price. I have seen offers recently back to £2,000 per plate left on older TX4s.
“Interestingly, demand from the airport is keeping Vito prices relatively high. The only fly in the ointment for Vito owners is that TfL now occasionally check the rear wheel steering during an on-street inspection. This is resulting in increased numbers of stop notes, and demand for an ever-diminishing supply of rear wheel steer parts, especially actuators, once again forcing up these prices.”
