Buying a Taxi: New vs Used

If you’re looking to buy a taxi, an important question you need to ask is ‘new or used’? Some local authorities insist their taxi drivers own a new vehicle, so it’s worth doing your homework first. However, if these restrictions don’t affect you, here are some points to consider when weighing up the advantages of buying a brand new or pre-loved vehicle.

Advantages of buying a new taxi

• Make it yours – If you want to make your taxi your very own, buying new can be the best way to do it. You can choose the spec, extra gadgets and even the colour that best suits you, and why not? Your car is your office after all.
  
• Extra safety – New models come equipped with the most up-to-date safety equipment to give you peace of mind on the roads.
  
• Enhanced reliability – A new taxi is less likely to break down but if there was a fault, your new car will be under a manufacturer’s guarantee. Some manufacturers offer warranties of up to seven years.
  

Cheaper running costs – The latest models can often offer greater fuel efficiency to help keep your long-term running costs down, or lower emissions, which can mean reduced rates of road tax.

Disadvantages of buying a new taxi

• More expensive – New cars are said to start losing value as soon as they leave the showroom, and it can be disheartening to shell out a lot of money for something that starts depreciating in value straightaway. 
  
• Lots of older cars to choose from – There are great deals to be had on used cars. It doesn’t have to be a car that’s 10-15 years old – far from it! Choose from an abundance of cars that are just a few years old, and feature all the latest tech.
  
• Decreased value – As mentioned, new cars have a higher rate of depreciation, and an older vehicle is more likely to retain its value.
  
• High-quality used cars – Don’t assume that a new car = higher quality: There are lots of high quality used vehicles for sale, some still under warranty. Do your research and you could bag a bargain.

Advantages of buying a used car

• Cheaper – You can get your hands on used cars that are a lot cheaper than the original retail price. Not only will you make a big saving but you could even upgrade to a better model than your budget would allow if you were buying new.
  
• More choice - Car sales have been slow in recent years, which is to the buyer’s advantage. Not only does that mean there are more cars for you to choose from but you can also get some really good deals on used cars.
  
• Retained value – The fastest rate of depreciation in car value takes place in its first year. Buying a high quality used car can help to reduce the rate of depreciation. 
  

High quality – Buying used doesn’t mean you have to compromise on quality. Reputable dealers offer a range of high quality used vehicles, with a full service history, guaranteed mileage and some still under warranty.

Disadvantages of buying a used car

• Less control – As we’ve said, your car is your office, and buying used means that you have to put up with a spec chosen by someone else. New cars are fully customisable, from the colour of the interior/exterior, to any extra gadgets you might want.
  
• Fewer safety measures – There are plenty of decent used cars out there, of course, but it’s worth noting that newer models come ready-equipped with the latest and greatest safety systems, offering you reassurance when you’re out transporting customers.
  
• Not as reliable – As a general rule, a new car is less likely to break down than an old one. Even if it did, it would be covered by the manufacturer’s guarantee – worth bearing in mind when your vehicle’s performance is key to your business’ success. 
  
• Higher running costs – Older vehicles have less in the way of things like fuel efficiency, which isn’t just bad news for the environment, but for your wallet too – more modern cars have slicker systems in place that will keep your long-term running costs down.