Can I Use My Lease Car as a Taxi?

2 minutes Published: 16/03/2021

What's Covered

Taxi drivers can’t risk buying an unreliable car. Time off the road means losing money. 

For most people, a lease car is the cheapest way to get a brand new car that you won’t have to MOT for 3 years.

Unfortunately though, taxi drivers can’t use a conventional lease for their work. As a taxi driver, you’re (highly) unlikely to be offered a lease on a personal contract hire or business contract hire vehicle because of the financial risks involved. 

If you’re driving all day, the mileage you put on the car will be astronomical in the lease companies eyes. 

If a finance company gives you a lease car, it will lose its value tremendously by the end of the contract. 

In fact, it’s rare to see a lease of even 20,000 miles per year, while the majority of taxi drivers do over 35,000 miles in a single year!

Even if you were to be offered a lease, the mileage penalties you’d be charged would be insane. 

What about using a lease car for Uber/Lyft? 

While these apps are officially called ‘rideshares’, they’re still effectively private hires. No matter whether you’re a Hackney driver in London or an Uber driver in Liverpool, you’re not going to get a personal lease deal. Sorry!

Unfortunately, you can’t do this with a Personal Contract Purchase either as there’s no guarantee that you’ll make the balloon payment at the end (you have the option to opt out and hand the car back with a PCP deal). 

Where can I get a lease deal for private hires? 

Don’t lose hope! There are specific finance deals made just for private hire vehicles. 

If you’re in need of a new taxi vehicle, it’s worth going to one of these specialised brokers. These specific taxi finance deals have extremely high mileage limits and know your car will get more wear and tear than average. This is reflected in the monthly cost of the deal. 

Companies like CabDirect are worth checking out for leasing private hire vehicles. 

If you don’t want to pay to lease a car, it might be worth buying a new or used car. While this is typically more expensive than personal leasing (because of the relatively low miles most people drive), it might be worth a look if you’re a taxi driver. 


Due to the amount of miles taxi drivers do, as well as the large amount of wear and tear, it’s impossible to get a personal or business lease deal as a taxi driver. The car would be highly unlikely to pass the BVRLA guidelines for fair wear and tear so the leasing company would need substantial payments to recoup their losses.

To get a lease deal, you’d have to contact a specialised taxi rental company, and look around for the best quotes. 

Alternatively, you can buy a used or new car and use it as a taxi. If you have a vehicle you’ve taken a Personal Contract Hire out on, you can use the car as a taxi after you’ve made the final payment.