Financing a new or used taxi or private hire vehicle
Whether the vehicle is brand new or has already worked for another operator, the questions that matter are the same: can it be licensed, will a lender accept its commercial use, and does the agreement still work at your real mileage? Sorbus Finance considers taxi and private hire enquiries where the purchase price is £25,000 or more and the applicant is an existing sole trader, limited company or partnership that has been trading for at least six months.
Who this service is for
- Purchase price of £25,000 or more — not the amount borrowed or the deposit.
- An existing sole trader, limited company or partnership.
- At least 6 months of trading history.
These are Sorbus enquiry criteria, not a finance approval. The lender must accept the vehicle, taxi or private hire use and applicant.
More taxi and private hire finance
Does your purchase fit our enquiry policy?
Sorbus Finance considers taxi and private hire enquiries where the purchase price is £25,000 or more and the applicant is an existing sole trader, limited company or partnership that has been trading for at least six months. A purchase price of exactly £25,000 and exactly six months of trading both qualify.
We look at the purchase price of the vehicle or vehicles you are buying as quoted. We do not split the threshold per vehicle or apply VAT assumptions. The figure is not the amount you borrow or a deposit.
This is our policy for enquiries, not a lender rule. We do not provide this service to start-ups or consumers.
- Purchase price of £25,000 or more (the £25,000 boundary is included)
- Existing sole trader, limited company or partnership with at least six months of trading history (six months is included)
Due diligence on a used licensed vehicle
A vehicle that has previously been licensed has usually lived a harder life than a private car. Ask for the service history, the reason it is being sold, any outstanding finance, and evidence of how it has been maintained. An independent inspection is worth considering before you commit.
Prior licensed use does not mean the vehicle will automatically be licensable again, or licensable in a different area. Licensing is handled by your local council outside London in England and Wales, by Transport for London in London, and through separate processes in Scotland and Northern Ireland. Ask your own licensing authority whether this specific vehicle meets its current requirements.
Lenders may view older or higher-mileage vehicles differently. Do not pay a non-refundable deposit to a seller until you know the vehicle can be licensed and a lender is prepared to accept it.
- Full service and maintenance history
- Confirmation of no outstanding finance
- Independent inspection where appropriate
- Licensing authority confirmation for your area
Buying new: specification and commercial use
A new vehicle removes some history risk but not the licensing question. Confirm the exact specification, including seating, accessibility features and any livery or equipment your authority expects, before ordering.
Manufacturer warranties and supplier terms may be written differently for vehicles used for hire and reward. Read the warranty terms for commercial use rather than assuming standard cover applies.
Order lead times can mean prices or specifications change. Make sure the finance proposal reflects the vehicle actually being delivered.
Comparing agreements side by side
Hire purchase normally means you own the vehicle once every payment and fee in the agreement has been made. Agreements with a balloon leave a final lump sum owed; that sum is debt, not a guaranteed value, and handing the vehicle back is not automatic. Leasing structures typically do not give you ownership and may carry mileage and return conditions.
Line proposals up on total amount payable, fees, any broker fee and commission, settlement terms, mileage conditions and ownership. Sorbus works with a selected panel of lenders, not the whole market, and is a broker rather than a lender.
Tax and VAT treatment differs between sole traders, partnerships and limited companies. Take advice from your accountant; there is no universal tax advantage to any of these options, and business agreements may not carry the statutory protections you might expect from consumer finance.
A sensible order of checks
Licensing authority
Confirm the vehicle can be licensed for taxi or private hire work in your area before anything else.
Vehicle evidence
Gather history, condition and finance-clear evidence for used vehicles; confirm specification and warranty terms for new ones.
Usage disclosure
Tell the lender and insurer the real intended use and expected mileage, and confirm both will accept it.
Agreement comparison
Compare total payable, fees, commission, settlement and ownership, not just the monthly figure.
Costs and risks to weigh
- Used vehicles may carry hidden mechanical wear from previous licensed work.
- A vehicle licensed elsewhere may not meet your own authority's requirements.
- Non-refundable deposits paid before licensing and finance are confirmed can be lost.
- Balloon payments remain owed regardless of what the vehicle is worth at the end.
- Warranty terms may differ or be limited for hire and reward use.
Sorbus Finance is a broker, not a lender, and works with a selected panel of lenders rather than the whole market. Any offer, cost, deposit, security or guarantee requirement depends on the lender's assessment and the agreement itself. Ask for a written breakdown of lender charges and any broker fee. VAT and tax treatment depend on your business circumstances and structure; take advice from your accountant.
Lender and document checklist
- Purchase price of £25,000 or more (the £25,000 boundary is included)
- Existing sole trader, limited company or partnership with at least six months of trading history (six months is included)
- Supplier invoice or quote showing purchase price
- Vehicle registration, age, mileage and history for used vehicles
- Licensing authority confirmation for the specific vehicle
- Insurer confirmation for hire and reward use
- Recent business bank statements and accounts or tax returns
Related finance services
Sources worth reading
Licensing processes differ between London, the rest of England and Wales, Scotland and Northern Ireland. Always confirm current requirements with your own licensing authority. Sources are general guidance and do not replace advice from your licensing authority, insurer, lender or accountant.
Before your enquiry
Check the purchase fits our service
Taxi and private hire finance enquiries are for a purchase price of at least £25,000, by an existing sole trader, limited company or partnership with at least 6 months of trading history. This is the purchase price, not the amount you want to borrow or your deposit.
Frequently asked questions
Who can enquire with Sorbus Finance about taxi or private hire vehicle finance?+
We consider enquiries where the purchase price is £25,000 or more (exactly £25,000 qualifies) and the applicant is an existing sole trader, limited company or partnership with at least six months of trading history (exactly six months qualifies). This is our own enquiry policy, not universal lender eligibility. The £25,000 refers to the purchase price, not the amount borrowed or a deposit. We do not offer this service to start-ups or consumers, and any finance remains subject to lender approval.
Can I finance a vehicle that was previously a licensed taxi?+
Possibly, subject to lender acceptance. Gather the history and condition evidence first, and confirm with your own licensing authority that it can be licensed for your work, as previous licensing elsewhere is not a guarantee.
What should I send for a multi-vehicle purchase?+
Send the supplier quote showing each vehicle, its price and the overall purchase price, with any VAT separately identified. Sorbus can then confirm how the proposed purchase fits this service and which vehicles a lender will consider. Do not assume that every vehicle or proposal will be accepted.
Should I pay a deposit to hold a used vehicle?+
Be cautious about any non-refundable deposit until the licensing authority, lender and insurer have each confirmed the vehicle and its intended use are acceptable.
Is hire purchase or leasing better for a private hire car?+
Neither is universally better. Hire purchase usually leads to ownership once all payments and fees are met; leasing generally does not. Compare total cost, mileage terms, settlement and ownership, and ask your accountant about tax.
Can I hand the vehicle back at the end if it has a balloon payment?+
Not automatically. A balloon is a debt you owe. Whether any return option exists depends entirely on the agreement you sign.
Found the vehicle? Check it before you commit
Send us the vehicle details and purchase price. If it is £25,000 or more and you have traded for at least six months, we will review it against our lender panel.