The cost of buying a new vehicle is the biggest expense taxi drivers face – and the rising price of cabs, PHVs and parts is putting a huge squeeze on their finances.
While many grants and other offers of financial help are usually associated with the purchase of new vehicles, the reality for most taxi and PHV drivers is finding something used that is reliable and affordable and allows them to earn a living while fares remain static or only increase by small amounts.
Financial pressure
But surging demand and shortages of vehicles has also pushed up the price of second-hand vehicles, with vehicle age licensing restrictions causing further problems for drivers.
Officials in Leicester have taken steps to ease the financial pressures on taxi and PHV drivers by increasing the age limits for vehicles used for public hire and private hire.
Until last month, vehicles licensed by Leicester City Council could not be more than five years old when first registered with the council and less than 11 years when re-licensed.
The BBC reports that following pressure from drivers, vehicles can now be nine years old when registered and 15 years when licences are renewed – as long as they meet Euro 6 emissions standards.
This change will make a real difference to drivers because it gives them a much larger selection of vehicles to choose from and a range of prices to meet their budgets. It also allows them to hang on to vehicles for longer, especially black cabs which drivers in the area said would cost between £20,000 and £30,000.
Long-term planning
The changes also give drivers time to make longer-term decisions, such as switching to an EV. While a driver might have concerns that they could not recoup the initial higher cost of an EV within 11 years, the additional minimum four years gives them breathing space.
This means that they can make the most of any offers and incentives to make the switch to greener motoring, without worrying that they might still be making finance payments when the vehicle is due to be replaced. With regular maintenance, a vehicle that is well looked after could really see drivers getting their money’s worth.
As part of the changes, vehicles over the age of 11 will be required to undergo three planned mid-term inspections per year (every four months), to ensure high safety standards are maintained.
For vehicles under the age of three, the council has reduced the number of planned inspections will be reduced from two per year to one per year.
Vehicles aged between three and 11 will require a mandatory inspection at six months.
Support
In the build up to the changes, the council heard that the number of hackney carriages in the city has fallen in recent years and launched the consultation to see what could be done.
It found there was “clearly a need to support the trade during difficult financial circumstances”, adding an “overly restrictive age policy” would “simply lead to drivers moving to other licensing authorities but continuing to work in Leicester”.
By changing the rules, the authority believes it will “retain some control over taxi operations within the city”.
It is good to see a council not only listening to drivers but making significant changes that will make a big difference to the city’s taxi and PHV drivers, who, like everyone else, have been hit by the cost-of-living crisis but are unable to put up their own prices.
