If you are establishing a taxi service business for the first time then one of the things you will need to make up your mind about is whether to invest in a new car or a used car. For most people, such a decision is often based upon their financial situation. It is quite possible that a larger number of taxi drivers would rather be transporting their passengers around in a new car as this may lead to getting more business as most passengers would rather be taken to their destination and picked up again in as new a vehicle as possible. However, there may be quite a few new taxi drivers who are unable to afford the outlay for a new car and have to settle for buying a used car.

According to the Society of Motor Manufacturers and Traders (SMMT), the number of used cars sold in the UK dropped slightly in the first quarter of 2026 when compared with the first quarter of 2025. In quarter 1 of 2026 second hand car sales amounted to 2,016,232 compared to 2,020,990 in quarter 1 of 2025. That is a fall of 0.2%. Although only a small reduction it is nevertheless disappointing to hear such a fall. Let us hope that a turnaround is seen in the second quarter of 2026.

The top 5 selling used cars in the UK in Q1 of 2026 were: –

1. Ford Fiesta 76,745
2. Vauxhall Corsa 62,201
3. Volkswagen Golf 56,236
4. Ford Focus 54,662
5. Nissan Qashqai 42,214

The top 5 colours of used cars sold in the UK in Q1 of 2026 were: –

1. Black 429,392
2. Grey 376,124
3. White 331,409
4. Blue 318,100
5. Silver/Aluminium 259,424

The top 5 fuels for used car sales in Q1 of 2026 in the UK were: –

1. Petrol 1,147,969
2. Diesel 629,987
3. Hybrid 128,039
4. Electric 86,943
5. Plug-In Hybrid 20,021

As you can see, there is still a huge market for used cars here in the UK and this may well continue for quite some time to come especially in the current difficult economic climate we still find ourselves in. This situation has been going on for quite a few years. Taxi drivers tend to do an awful lot of miles in their cars each year so one of their significant expenses is the cost of fuel. Regrettably, due in part to the USA/Iran war, we have seen prices rise significantly at petrol/diesel pumps for the purchase of a litre of fuel and there currently seems no end in sight as to when this may improve.

Whilst writing, if you require a taxi insurance quote, please contact us as we provide access to a panel of specialist insurance companies.