Can you get a car on finance for use as a taxi?

You can, but only if the finance agreement allows it. Most lenders see taxi use as commercial, which means standard deals often won’t apply. You’ll need to choose a specialist who offers taxi finance and clearly permits commercial use in the contract.

Expect to provide proof of income, your badge, and pay a deposit, with fixed monthly payments to follow. Some lenders also accept bad credit, as long as the finance remains affordable.

At Carplus, we tailor finance options to suit the needs of taxi drivers, helping you get approved and spread the cost with confidence.

Can taxi drivers get car finance?

Only with the right agreement in place. At Carplus, we help taxi drivers access car finance for taxi drivers through lenders who understand trade use and offer taxi car finance built around the needs of your taxi business.

Standard car finance rarely allows commercial use, especially if your work involves high mileage. That’s why it’s important to apply through a broker or lender who specialise in taxi finance and can guide your finance application in the right direction. And since all finance is subject to status, the terms depend on your income, driving history, and business setup.

You’ll usually need to show your licence, recent earnings, and pay a deposit to secure the deal. Then you repay in fixed monthly repayments, which keep your cash flow steady. Or you might choose a lease, if owning the car outright isn’t essential. But whatever route you take, always review the terms to make sure commercial use is included.

How taxi finance differs from private car finance

Taxi finance focuses on trade use first. It adjusts for high mileage and heavy wear and tear, which most personal-use agreements don’t cover. Private car finance assumes lower usage and gentler handling.

So, taxi driver car finance comes with terms built around the demands of your daily work. Lenders shape taxi finance options to include commercial use, business insurance, and flexibility with income. And because private car deals ignore those needs, they usually fall short for trade use.

That’s why taxi finance often includes structures made for professionals — things like mileage allowances, more durable agreements, and terms that protect your vehicle as a business asset. Private car finance focuses on fixed-use limits and stricter wear clauses, which don’t suit full-time driving.

You need a finance solution that fits your trade. And that means working with finance providers who understand how the job affects your vehicle and income. You can still shop around for car finance deals, but only those offering competitive taxi finance will actually work for your business.

Taxi finance supports how you drive, earn, and operate. Private car finance supports how people commute, run errands, and holiday. Both serve a purpose — but only one supports a working taxi.

Car finance types available for taxi

If you're a taxi driver looking for more predictable ownership, HP works well. But if you prefer to switch vehicles more often or keep payments lower, PCP gives you room to move.

Hire Purchase (HP)

Hire Purchase (HP) gives you full ownership at the end. You pay a deposit and fixed monthly instalments, and you know exactly what the vehicle will cost overall. Taxi finance makes HP ideal when you want a long-term asset with no mileage limits. And because the vehicle is yours once the final payment clears, you manage maintenance costs and resale options. You can also reclaim VAT as a limited company or sole trader, which improves long-term value. That’s where a finance calculator helps—you can plan the total cost upfront with more certainty.

Personal Contract Purchase (PCP)

Personal Contract Purchase (PCP) offers lower monthly payments and flexibility. You start with a deposit, followed by smaller instalments, and end with a balloon payment if you want to keep the car. Or you can return the vehicle or upgrade your current one, depending on what suits your trade. PCP builds in wear assumptions and mileage caps, which may still fit the average taxi route—but always check the terms first. And again, use a finance calculator to weigh the final cost against the benefits.

What Influences What You Get

Mileage & vehicle condition expectations

High mileage and heavy wear on a taxi significantly affect your vehicle’s residual value. And because taxis face more road time than private cars, lenders expect more wear and tear from the start. So they build that into the deal, adjusting terms to balance the risk and keep the offer realistic.

Credit score or poor credit options

Your credit history plays a big part in the kind of offer you receive. A strong record opens up more flexibility and better terms. But if you have missed payments, CCJs, or defaults, you’re not excluded. Some lenders offer bad credit finance designed for trade drivers. And with the right paperwork, you can still secure the right deal.

Business structure & borrowing role

How you operate your business also matters. If you’re a sole trader, you may borrow in your own name with income proof. But if you run a limited company, you might access more flexible terms and reclaim VAT. And because lenders assess your structure differently, the documents and process will vary depending on how you trade.

Vehicle type and emissions

The vehicle you choose also impacts the offer. Electric or hybrid taxis often qualify for more support, especially in emission-restricted areas. And because a low-emission taxi allows you to cut fuel spend and reduce zone charges, it can help make finance more affordable in the long run.

Can you finance a taxi with bad credit?

Yes, you can, and will. Bad credit doesn’t block access to the finance you need. A steady income or strong deposit improves your chances. That’s why bad credit finance for taxi drivers remains a workable solution.

You can still apply for taxi finance with CCJs, defaults, or limited history. A good credit score helps, but isn’t required. The key is showing affordability now.

Our experienced team compares finance tailored to the taxi trade. That helps you find taxi finance that fits your work and income.

Do I need permission from the lender to use the car as a taxi?

You do, and it’s an important step. Most finance agreements include clauses that restrict commercial use, which means you’ll need to check the terms before using the vehicle for hire. And because standard car finance isn’t designed for trade use, lenders may decline or withdraw the agreement if you don’t have permission.

That’s why you should always apply for taxi finance that clearly allows professional driving. It protects your contract and ensures you stay compliant from day one. And if the agreement doesn’t support trade use, you’ll need a broker who can find taxi deals made for the job.

Can I finance a taxi if I’m self-employed with no trading history?

It’s tougher, but possible. Most lenders prefer at least one to two years of trading history to judge income stability. But some finance providers may still consider your application based on other factors, such as your credit profile, deposit, or expected income. So if you’re new to the trade, a larger deposit or stronger credit history can help support your application.