How much does a London cab cost to buy?

An iconic London taxi can be bought for anywhere between ?1,000 to ?20,000. The price will depend on a number of factors, including the black cab's mileage, age, and engine capacity.



In 2026, buying a new London taxi is a significant investment, as the fleet has transitioned almost entirely to electric vehicles. A brand-new LEVC TX electric taxi—the only model currently meeting London's strict "Zero Emission Capable" (ZEC) requirements—typically costs between £65,000 and £72,000. However, most drivers take advantage of the Plug-in Taxi Grant, which can reduce the price by up to £7,500. For those who cannot afford the upfront cost of a new vehicle, there is a robust market for used taxis. A five-year-old TX model might sell for £35,000 to £45,000, while older diesel models (like the TX4), which are being phased out due to Ultra Low Emission Zone (ULEZ) standards, can be found for under £10,000, though they are increasingly difficult to license for work in Central London. Because of the high purchase price, many drivers opt for specialized finance packages or weekly rental agreements with "taxi fleets" to avoid the heavy initial capital expenditure.

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They May or May Not Own Their Own Cab Drivers can buy their cabs from sites like cabdirect.com, for example, or if they need to save up before buying one of their own they may rent out a vehicle for £150 to £200 per week. As you may guess in the long run, it is far cheaper to buy than rent.

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The latter is considered far more difficult. Drivers who own their cabs as opposed to renting from a garage are known as mushers and those who have just passed the knowledge are known as butter boys. There are currently around 21,000 black cabs in London, licensed by the Public Carriage Office.

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The price of diesel, inspections, maintenance, and getting the license all play a role, and the cabs themselves are not cheap. Only certain kinds of cars may be used as cabs and they're quite specialized. I believe the basic model is about £40,000. Taxis are best used if you're sharing with others (they can hold 5).

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It is polite to tip 10 to 15% of the taxi fare for black cabs and licensed minicabs in London. However, most people simply round up the fare to the nearest £1 and tell the driver to keep the change.

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A single-vehicle business can launch with less than $15,000 in equipment when you shop for a high-quality used vehicle. A new vehicle, on the other hand, is likely to run well over $20,000 depending on the model. After you secure the equipment, the next major expense is insurance.

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Partly due to regulations, originally being a licensed vehicle, London black cabs are regarded as being particularly safe and robust. Built for city centres they don't go too fast simply because they rarely need to. The top speed is near to 80mph; another attribute making a black cab an ideal family car.

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From Driver Rule 54-20 (in PDF): It is against the law to refuse a person based on race, disability, or a destination in New York City. A taxicab driver is required to drive a passenger to any destination in the five boroughs. You can make a refusal complaint by calling 3-1-1.

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Geely acquired the maker of London's black cabs in 2013, after its parent entered administration, and rebranded it as LEVC in 2017. As part of the plan, Geely invested more than £500 million in a new global headquarters and the UK's first dedicated EV manufacturing plant.

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London taxi drivers are licensed and must have passed an extensive training course (the Knowledge). Unlike many other cities, the number of taxicab drivers in London is not limited.

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It's easier to handle and manage cash compared to other modes of payment. Cash payments are immediate and there is no need to wait for the payment to be processed. Some taxi drivers may prefer cash payments to avoid paying fees associated with card payments.

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London EV Company Limited (LEVC, formerly The London Taxi Corporation Limited trading as The London Taxi Company) is a British automotive electric vehicle manufacturer with its headquarters at Ansty near Coventry, England, and a wholly-owned subsidiary of Chinese automaker Geely.

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You may choose to purchase new or used vehicles or lease your vehicles on a monthly basis. The costs can vary considerably, depending on the number of vehicles you require. You can expect to pay between £10,000 and £60,000 per car, depending on the age, make and specification.

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