The high cost of driving a cab in London

Hi everyone last month I started looking for a cab, first of all I went to M&O in Brewery road N1 and spoke to Lee Hilligenn sales executive, he told me that a new bronze tx4 will cost me £31,995 with no deposit the repayments came to £630. pm over 5 years,road tax £405.

Used TX4 07 reg with around 100,000 miles on was going for £22,500, that works out at £465, pm over 5 years again with no deposit.

The government’s scrappage scheme finishes the end of march 2010, so you won’t get the government’s £2,000 and the £1,000 from LTI  after this date

How convenient for the government just when it finishes the  new stealth tax  starts from April 2010, thats £1,500. added to the cost of a new taxi, in it’s first year.

How on earth do they expect to sell new taxis, with the government loading them with this. Well  I suppose LTI should do something about it but don’t hold your breath.

If Andrew Overton is anything to go by, then they haven’t got a hope in hell, his attitude was you’ve got to buy one one day.

That’s what what he said when I payed the LTI factory a visit back in February this year,there was complacency written all over his face.

That maybe the case Andrew but it doesn’t have to be one of yours.

I’m not sure LTI really understand  London cab drivers, when you reach a certain age in life, you don’t want to be loaded with heavy finances, we want to cut back not work longer hours.

From what I can gather after talking to many cab drivers, over the years they are still charging to much money.

Most drivers say they should be at least £10,000 cheaper.

Next  I went to the Ascott cab co in SE8, while there I checked out their TX4 07 reg plates, again with around 95,000 on the clock going for £23,000 over 5 years works out £469,58 pm, with two years warranty

Not a lot of difference with just taxis in Benfleet, with only a years warranty it worked out roughly the same.

Being they are all LTI agents it’s not surprising.

Be lucky, Steve.

11 Responses to “The high cost of driving a cab in London”

  1. I’d wait.

    The PCO are currently reviewing the need for a greater range of Taxi types for London.

    The Peugeot E7 (£25K) and Mercedes Vito M8 (£28K) from Allied vehicles are on the cards.

    The decision is due soon. If they reject the licensing of the above (like they did in Liverpool) The company will take the PCO to court, and win (as they did in Liverpool)

    Wait. More choice is on its way.

  2. Steve says:

    Hi David

    Thanks again for posting a comment.

    How can you be so sure that’s what will happen ?

  3. dannyBoy says:

    £15k added to london taxi cost…you sure ? So your telling me a tx4 will be 46k ? LOL

  4. steve says:

    Hi Danny yes there will be an increase for the first year only, on all new TX4’s. read the statement below, they don’t mention how much but i’ve heard it’s going to be £1,500. added, for the first year only.

    Buy now to avoid the April price increase warns LTI

    5th February, 2010

    LTI Sales Director, Rob Laidler warns drivers to grab a bargain before the end of March and avoid the price rise.

    In the 2009 budget the Government announced an increase in first registration tax to come into effect on the 1st April 2010 which will see all new vehicle prices increase. The effect of the tax is to substantially increase the cost of a new vehicle for the first year only. It is for this reason that it has been dubbed a “showroom tax” by some pundits.

    LTI will also be increasing the base vehicle price to cover movements in the cost of raw materials and exchange rates. These increases are compounded by the new tax rate coming into force.

    “If drivers want to avoid the price rise then they need to go out and bag themselves a “10” plate bargain and take delivery before the end of March” said Laidler.

    “This is not an early April fool to get drivers in the showroom this is a very real warning to drivers not to wait and cost them money. The price of a new TX4 will be going up due to an increase in costs and to cover the tax rise. We don’t want to do it but we have to pass the increases on to the customer. But if they buy now for delivery in March they won’t get charged.”

  5. dannyBoy says:

    I think its about £900 added on for the first year.

  6. steve says:

    Danny sorry for the spelling mistake, the figure I was looking at was 1,500. not 15,000.

    Thanks for pointing this out. I’ve made the corrections.

    I’ve spoken to M&O regarding this matter and i’m still waiting a reply.

    lets hope it’s closer to your figure.

  7. Edinburgh Tx4 says:

    The showroom tax or new VED first year nonsense is banded according to the CO2 Emissions (g/km)

    The manuel @ 211 should be in band K which means £550.00 for the first year.

    The Automatic @ 233 should be in band L which means £750.00 for the first year.

    Band M is the highest at £950.00 but that’s reserved for vehicles with Emissions above 256 g/km.

    Hope that helps although I’m not sure of the reasoning behind it!

  8. Edinburgh Tx4 says:

    You can check the first year VED for all new vehicles if you follow this link.

  9. steve says:

    Edinburgh Tx4 Thanks for clearing that up, much appreciated.

  10. jimbo says:

    be lucky steve;-)

  11. Nice article. Yes prices are going up and up, so if you believe or not it won’t make difference.

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