Taxi rental firm boss debates abandoning extended black cab warranties amid soaring costs

A prominent taxi firm boss has debated abandoning extended black taxi extended warranties amid soaring costs.

Paul Byron, owner of black cab rental firm HP Taxis, announced the significant change in his company's approach to handling LEVC TX taxi warranties, due to the steep increase in warranty costs and excess charges. 

This decision reflects broader financial concerns affecting the taxi industry, particularly those involving the iconic LEVC TX taxi.

In a detailed video posted on social media, Byron, collaborating with Dean Warrington, owner of Wizann London knowledge school, shared insights about the escalating costs and the implications for drivers and buyers of the LEVC TX taxi. He explained that since the start of the new year, warranty prices for the LEVC TX have surged dramatically. In 2023, a three-year warranty for 5-year-old TX models was priced around £3,600. This figure has now skyrocketed to an eye-watering £5,800, accompanied by the introduction of a £250 excess charge for warranty-related work.

Moreover, drivers purchasing a new taxi and wishing to extend the standard three-year manufacturer warranty to five years are now facing charges of approximately £1,500, in addition to the £250 warranty excess charge. These substantial increases have led many, including Byron himself, to reconsider the necessity of extended warranties.

In the YouTube video, Byron articulated his new strategy of setting aside funds for maintenance instead of opting for warranty coverage, a decision that highlights the financial challenges and risks faced by taxi operators. 

The LEVC TX is known for its high repair costs, especially if issues arise with the ERAD (Electric Rear Axle Drive) or heating systems. A replacement ERAD can cost around £5,000, a significant expense for taxi fleets and individual owners.

Byron's decision and public announcement are indicative of a broader trend within the taxi industry, as operators and drivers grapple with increasing financial pressures.