The Curious Case of London's Used Taxi Market: Why are old diesels still fetching a premium?

A London taxi fleet expert recently raised an intriguing point about the current state of the market for old diesel cabs versus the LEVC TX models.

Despite the more attractive pricing and availability of ERAD (Electric Range Extender) solutions for the LEVC TX, the older diesel models are surprisingly holding their value.

With early TX models now priced around £30,000 and ERAD solutions available from three aftermarket suppliers starting at approximately £1,500, the TX has become a compelling option for drivers with end-of-life cabs. The market response is positive, with these vehicles beginning to sell. However, the expert questions why older diesel taxis, with only a few years of service life remaining, are still maintaining high prices.

He shared an anecdote about selling a late Mercedes-Benz Vito to a driver looking to trade in a 13 plate TX4. Despite the TX4 being an average cab with under three years left on its age limit as a working cab, it attracted a surprisingly high price. Traditionally, a trade-in value of £2,000 per plate would suggest an offer of around £6,000. However, the driver managed to sell the cab privately for £13,000, equating to over £4,000 per plate for a less-than-prime example.

This raises significant questions about current market dynamics and buyer behaviour. Why are these old diesels, with limited operational life, still commanding such high prices?

A London taxi fleet expert said in TAXI Newspaper: “Whilst on the subject of anomalies, here’s another thing I find strange. With the prices of early TXEs now sitting at around £30k and with ERAD solutions now available from three different aftermarket suppliers starting at about £1,500, the TXE is now a great choice for drivers with old end of life cabs. It shows as they are beginning to sell. The bigger question is why is the price of old diesels with only two or three years left holding up so well?

“I sold a late Vito to a driver who wanted to trade a 13 plate TX4, it had just under three years left and was not the best cab I have ever looked at, but with average mileage. A while back the accepted trade figure of £2,000 per plate left would have seen me offer around £6,000 As it happens though, I had but a few enquiries from out of town and I could see a quick flip. So, I offered him £8,000 thinking it was a good offer. I was stunned to learn later that he had sold it privately for £13,000! That’s over £4,000 per plate, and for a far from prime example, but as they say, there is one born every minute!”