Sudden slump in second-hand taxi sales leaves London cab trade mystified
Updated: Apr 8
In an unexpected turn of events, the London taxi market has seen a downturn in the sale of second-hand cabs, leaving industry insiders puzzled.
An expert black cab fleet columnist for TAXI Newspaper reported a surprising drop in demand for previously sought-after models such as the TXEs, Euro VI TX4s, and Vitos, which had historically maintained their value due to high demand, particularly among airport drivers.
Despite a healthy sale of new cabs, with February witnessing 46 new vehicles being sold in anticipation of the new plate release, the second-hand market is said to have experienced a downturn. This trend is particularly perplexing given that work levels for London taxi drivers have remained relatively stable, with only a slight dip attributed to Ramadan.
Speculation within the industry suggests various potential causes for this market anomaly. Among the theories is widespread rumours regarding potential policy changes should Mayor Sadiq Khan be re-elected in May. Another theory is that the recent high volume of new cab sales has led to an oversupply of TXEs on the market, allowing buyers to be more selective, opting for low mileage, single-owner vehicles.
The mystery London taxi fleet columnist said in TAXI Newspaper: “I am now officially baffled for the first time in ages. I make a living buying and selling cabs, it’s not rocket science, the market is affected by various bits and pieces - time of year, how many new cabs being sold, age limits, new registrations, how busy it is, etc. Occasionally though, the market dips or booms for no real reason and at the moment it’s dived!
“There is a glut of cabs that four months ago were fetching premiums: TXEs, Euro VI TX4s and even Vitos (which I always thought would stay bullet proof because of demand from the airport drivers). They are all now struggling to sell, which inevitably means lower prices. There is no rhyme or reason why this has happened, it started after Christmas, very slowly, but this past month has been as bad as I can remember.
“New cab sales are still good. February only saw 46 new cabs sold, but it’s always a quiet month as drivers and fleets wait for the new plate. So it’s not that causing the slow down. The work levels, according to the dozens of drivers I speak to each week are OK, it’s been a bit quieter because of Ramadan.
“I know a lot of drivers are concerned that if Khan gets elected again in May, he will reduce the Euro VI age limit down to 12 years, that rumour really has done the rounds and I guess we won’t know until post-May. That might account for the Euro VI sales drop but why the similar drop in demand for TXEs?
“It could be that recent high new cab sales just mean there is a glut of TXEs and buyers are seeing the increase in supply, being fussy and cherry picking the best one-owner, low mileage cabs.
“It’s a mystery. Whatever the reason, I hope it will quickly vanish, and the market levels out again soon.”
