Taxi Finance To Suit You

Rates from 10.9% APR. Representative APR 19.9%

TAXI FINANCE SOLUTIONS

Taxi Finance.

It makes sense to own your own taxi, as this will offer you the best possible earning potential. Most weekly or monthly car payments will be much lower than if you were to pay someone else to use their vehicle to trade.

Taxis provide a vital transport service in the UK. Their round the clock availability affords the user much more flexibility and convenience than public transport, and they are much safer as they pick up and drop off in the exact location the user wants to travel to and from.

We all benefit from the availability of taxis, but they are of unique importance to disabled people, providing the transportation that makes travel possible. As drivers grow older or experience reduced mobility, they provide a similar lifeline.

Start Work Using Taxi Finance.

Many taxi drivers start by working for a taxi company to get experience. If you do want to take this route, apply directly to taxi companies and it shouldn’t be long before you’re contacted with a potential job. Always be punctual and courteous and your work should increase.

You could also rent a car from another company. In big cities especially, it’s easy to rent out a public hire vehicle on a weekly basis. This arrangement means that you pay a weekly fee for the use of the vehicle, plus fuel, but get to keep the fares you make.

It’s very common for taxi drivers to be self-employed. Unless you are in the position to buy a vehicle outright, you will make monthly payments on your finance agreement or lease, but you will keep all of your tips and fares. You can choose to receive business from local taxi booking systems by paying another fee.

Once you have enough experience in the business, you might want to think about starting your own taxi company. Once you have a regular client base, especially with local businesses, you might find that you have more work than you can handle alone.

Compare Taxi Finance - Bad Credit.

If you have a less than perfect credit score or even if you are just new to the taxi business, you might find it more difficult to find a good deal. This is why comparison sites such as Bright Motor Finance are so important – they are ready to find deals for everyone.

These are not reasons that you should find it impossible to secure finance, just that a more comprehensive search for a deal may be necessary. You might find that you need to pay a slighter interest rate than if you have a perfect credit history, but this will improve with each subsequent deal as you will have then proved that you are reliable and will make payments on time, thus improving your credit score.

Taxi Finance

Comparing Taxi Finance.

For many taxi drivers, the only route to owning their own vehicle will be to arrange finance.

You should always compare the best deals to ensure that you select the right option for you. Usually, this will be the lowest-priced deal but there are always other variables that you need to take into consideration. Comparing deals from across the market not only allows you to compare the big name lenders, but it can also give you access to the smaller, specialist providers that might be able to offer you a deal if you have any special requirements.

What Happens When I Go For Taxi Finance?

It’s not quite the same process as when you use car finance to buy a vehicle for personal use. The key difference is that you will cover a far greater mileage than a standard driver, so although you might be asked to submit a mileage estimate, it won’t be anywhere near as accurate as for car finance. The reason that finance companies are so interested in the mileage that you will cover in standard car finance is that once you hand the car back, the resale price will be much lower

With taxi finance, lenders obviously know that this situation will be amplified, and this is why a lot of lenders choose not to offer this type of finance at all. It is possible to use a personal loan to buy a taxi. In this instance, you would have less to worry about as far as the lender’s specific terms, and of course, you would own the vehicle outright once you had paid it off.

Payment History
35%
Amount You Owe
30%
Length of Credit History
15%
New Credit Opened
10%
Type of Credit
10%

Credit Score Breakdown.

What Factors Affect Your Credit Score?

Financial well-being is strongly influenced by people’s credit scores. Your credit score is a measure of your financial responsibility. The higher your credit score, the better your chances of getting car finance with lower interest rates, and other benefits. Having a low credit score may prevent you from qualifying for a car loan that you may want, or your interest rate for borrowing will be higher than those who have excellent or good credit.

If you seek advice on how to improve your credit score or simply require more information, please visit: Ultimate Guide to Credit Scores

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Rates from 10.9% APR. Representative APR 19.9% Representative Example: Borrow £6,000 with £1,000 deposit over 48 months with a representative APR of 19.9%, the monthly payment would be £182.26, with a total cost of credit of £2,748.61 and a total amount payable of £8,748.61. Car Loans UK is a broker not a lender. This is an example only, all finance subject to status. Lender fees may apply

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Once we have dotted the I’s and crossed the T’s, we will handle the rest of the paperwork for you so it’s a nice and easy process. You’ll be on the road in no time!

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Rates from 10.9% APR. Representative APR 19.9%

Frequently Asked Questions.

Why use Bright Motor Finance for motor finance?

At Bright Motor Finance we have many lenders on our panel, so we can make sure you are getting the best motor finance deal for you. Plus, we do all the admin, paperwork and negotiations with the dealer.

What is the difference between HP & PCP?

HP and PCP car finance are fairly similar to one another. However PCP tends to have lower monthly repayments. Although that the full amount that will need to be repaid is generally higher than with hire purchase.

PCP works by having a loan for the difference of the vehicles price when it is brand new, and the anticipated vehicle value when the agreement has been completed. This is because the vehicle will of course, depreciate over time.

HP works by usually paying a deposit of around 10% of the cars initial value, and then this value will be paid off in fixed monthly instalments. Car dealers as well as brokers (such as ourselves) can arrange a hire purchase finance agreement.

What is a car finance brokerage service?

In essence, a car finance broker acts as a middleman between the customer and the lender. A car loan broker handles all the paperwork and negotiates with lenders on your behalf. By doing this, you can rest assured that the broker is fighting for you to get you the best deal. Our goal is to make your car finance journey as simple as possible. As well as this, car finance brokers such as ourselves have deals that aren’t usually available to the general public. Instead of charging the customer, car finance brokers charge the dealerships.

What if I have been refused by other brokers?

There is still hope even if other brokers have rejected you in the past. We offer a number of finance options for those with bad credit scores at Bright Motor Finance. We will conduct a hard credit check when you apply for car finance through us, which may negatively affect your credit score. Especially if they were conducted within a short period of time. As a result, it is recommended that you wait between 3-6 months before applying for car finance again after being declined.

What if I’m struggling to make payments?

Having trouble making your car finance payments? You have a number of options available to you. One of the following charities/organizations can provide you with free, independent advice. 

Can I change my mileage on PCP contracts?

In a nutshell, the answer is no.

This is because the car’s resale value has already been calculated once you’ve signed your PCP car loan contract. It is crucial to know that exceeding your agreed-upon mileage allowance will result in additional penalties at the end of your PCP contract.

How does car finance affect my credit score?

Initially, asking for a car loan will typically have a negative impact on your credit score due to the intensive credit checks that lenders will perform. You should be aware, however, that if you make your car finance instalments on schedule. This will almost certainly improve your credit score.

What is APR?

The annual percentage rate (APR) is the total amount charged for the loan. APR, on the other hand, comes in two varieties. Exact APR implies that the rate displayed to you is the rate you will receive. Representative APR, on the other hand, suggests that 51 percent or more of those who apply for financing will receive that rate. This means that customers with weak credit may face a higher APR.

Representative APR is commonly used to advertise a company’s rates. After you have provided the lender with all of the essential information, they will be able to provide you with your specific APR rate.

GAP insurance and do you need it?

What exactly is it?

Gap insurance is an abbreviation for Guaranteed Asset Protection.

Gap insurance is a type of insurance that is meant to cover the difference between the amount your insurance provider pays out in the event that your car is written off or stolen and the price you paid for the vehicle. However, you should be aware that gap insurance supplements, not replaces, your usual car insurance.

So, when do you need gap insurance?

Gap insurance can be beneficial in a variety of ways. First and foremost, if you took out a large loan to purchase your car. As previously said, gap insurance would be advantageous if your automobile was stolen or written off. This is due to the fact that the gap will pay off the existing debt.
Furthermore, gap insurance may be advantageous if you are concerned about the depreciation of your vehicle. In the first year, a brand new car will lose 15-35 percent of its value. As a result, gap insurance might assist you in receiving a larger reimbursement if your automobile is written off after it has already depreciated.

Where can I purchase gap insurance?

Thanks to Bright Compare, comparing gap insurance quotes has never been easier!

What Happens If There Is An Issue With The Vehicle?

If the vehicle is defective upon delivery, you can simply refuse it and return it to the dealership.

Can I alter my car if I finance it?

You can, but you must first obtain authorisation from the financial firm before making any changes.

Is there anything to consider?

Yes.

  • You will not own the car until you make the final payment.

  • You are also not permitted to sell or modify the vehicle in any manner without receiving permission first.

  • Third, monthly repayments are typically higher when compared to PCP and other car leasing plans.

  • Finally, it can be expensive if you only need a short-term arrangement

What affects the cost of my car finance payments?
  1. Your deposit size
  2. How long your car finance agreement will last
  3. The interest rate
  4. What car do you choose?
Assessing my credit record?

You can also see your credit report by contacting a company such as Experian or Equifax before you make an application online. It costs about £2. You can see your credit report online and determine whether it is accurate and correct. If you spot any errors, you can request that a note is added to your report for lenders to see. If you are struggling to obtain even bad credit loans then it makes sense to check your credit report before you make any more applications.

It may be that there is an error that needs to be corrected first. Remember that every credit arrangement you apply for will record a search against your file, and too many of these may put lenders off as it suggests you could be over-extending yourself with finance. So before you apply for your benefits car loan, pause on any other finance applications for a period of time and focus on repaying every other credit arrangement that you have fully on time – including utilities, mobile phones, credit cards and so forth. This will put you in the best possible position for your application.

Why compare car finance on benefits?

When you compare motor finance on benefits, you can instantly see which lenders are likely to be prepared to lend to you. Use our website to compare motor finance on benefits and it makes the entire process quick and easy. Simply enter your basic information and we will instantly scour the market to see which lenders may be prepared to offer to you and on which terms. When you see the car dealership which is best for you, you can then apply for your loan quickly and without delay, by clicking through to the lender via our website.

What Information Do Lenders Ask For?

When you apply for your car loan, the lender will ask to see evidence of your benefits income. This could include jobseekers allowance, disability allowance, Universal Credit or another form of benefits income. If you also have another source of income such as a job or pension, the lender will also ask to see this information. They will then carry out a credit check as part of the application process.

 

Compare Taxi Finance Types

If you work as a sole trader or independent taxi driver, you can use the loan to buy a new or used vehicle to use as a taxi. Sometimes you can purchase a single taxi or a fleet of vehicles as a business transaction.

Uber drivers can choose to finance their vehicle purchase outside of their agreement with Uber. Doing this may mean that you can get a better deal and it might even increase the likelihood that you will be accepted for a deal. As with other types of taxi finance, there are deals available for you even if you have bad credit or are new to driving a cab. Similarly, you will probably find that you will pay a higher interest rate for your first deal, but that things will improve once you have demonstrated that you are able to make payments in full and on time.

Asset finance is used for black cab finance, private hire finance, hire purchase, lease purchase and finance lease. It’s always best to discuss the best option with your accountant, who will be able to explain the advantages and disadvantages of each type of finance according to your individual circumstances.

Another type of taxi finance option is the option to refinance the vehicles your business already owns. To do this, your fleet of cars will need to be quite new. This option is great for businesses who need to free up some capital for another purpose.