Taxi Finance
Terms and Conditions:
This example is for a Hire Purchase Agreement.
I confirm that I have read and understand the following, and that in doing so provide permission for ZAP Loans to undertake a credit search and provide my information to their panel of lenders. I understand that this may register as a credit search against my name.
- I have read the Initial disclosure document (IDD) available online
- I consent to a credit search being conducted
- I understand the following
- The credit search relates to a hire purchase product which does not have any mileage restrictions; however, a balloon product is also available – please call to discuss
- Subject to balance financed, the agreement would be protected by the Consumer Credit Act (CCA)
- I tend to be the registered keeper of the vehicle and would hold fully comprehensive motor insurance during the length of the agreement
- I understand that the vehicle is at risk of repossession if the contractual repayments are not maintained
By proceeding to obtain a quote, you confirm that you have independently chosen the appropriate term of agreement , are comfortable with the suggested repayments and agree to the above statements. Copies of the relevant documentation, to include the IDD, Product Explanations and Overview have been provided to your email address in a durable medium
What are the pros and cons of taxi financing?
Benefits of Taxi Financing:
Flexible Payment Options: Taxi financing allows you to spread the cost over manageable monthly payments, making it easier to budget for your vehicle.
Preserve Cash Flow: Instead of a large upfront payment, financing preserves your savings for other investments or unexpected expenses.
Freedom to Choose: Financing gives you the freedom to choose the vehicle that best suits your needs and preferences without being limited by immediate affordability.
Potential Tax Benefits: Depending on your circumstances, financing may offer tax advantages compared to outright purchase.
Build Credit History: Regular, timely payments on your taxi loan can help improve your credit score over time.
Considerations of Taxi Financing:
Specialised Insurance Requirements: Taxis usually require specialised insurance coverage, such as public hire or private hire insurance, which can be more expensive than standard car insurance.
Regulatory Compliance: Taxis are subject to specific licensing and regulatory requirements. Lenders may require proof of compliance before approving financing.
Higher Depreciation: Due to higher mileage and intensive use, taxis may depreciate faster than regular cars, impacting resale value and loan terms.
Commercial Use Considerations: Taxi financing may be categorized as commercial vehicle financing, with different eligibility criteria and loan terms compared to personal vehicle loans.
Income Verification: Lenders may require proof of income from taxi operations to assess loan eligibility and repayment ability.
Used or new taxi finance – FAQs
How much does taxi financing cost per month?
Your monthly repayment cost will depend on the type of vehicle you want to buy, your credit score, and the interest rate set by the lender. Everyone’s budget is different. The best way to find out what you can afford is to use our free taxi loan calculator.
