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Private Hire Vehicle Finance

Spread the cost of private hire vehicles from £22,000 to £48,000+ with flexible finance options. HP, PCP, or lease – compare rates from 40+ lenders.

Can you finance a private hire vehicle?

Yes, private hire vehicles are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £22,000 to £48,000, and most deals are written over 24–60 months with a deposit of around 10–15%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

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Typical Cost

£22k – £48k

Approval Speed

24–48 hours

Same-day for < £40k

Rates From

5.0% APR

What would a private hire vehicle cost per month?

£30,000
10%
60 months
9%
£0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical private hire vehicle price. Indicative only, not a quote.

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Finance options

Hire Purchase (HP)

Rate
From 5.5% APR
Term
24–60 months
Deposit
10–15%
Ownership
Yours at the end
Best for
Drivers wanting to own the car outright at the end of the term

Finance Lease

Rate
From 5.0% APR
Term
24‒60 months
Deposit
None required
Ownership
Return, refinance the balloon, or buy at the end
Best for
Lower monthly payments while the car is doing high private hire mileage, with a balloon reflecting expected resale value

Contract Hire

Rate
From 5.8% APR
Term
24–36 months
Deposit
None required
Ownership
Return at the end
Best for
Drivers who'd rather hand the car back and move onto a newer one than manage resale themselves

Representative example

On a purchase price of £30,000: a 10% deposit of £3,000, then 48 monthly payments of £633 at 5.9% APR representative (fixed). Total amount payable £33,384, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification Guide price Type
Toyota Corolla Hybrid £24,000 – £30,000 Saloon PHV
Skoda Octavia £26,000 – £34,000 Estate/Saloon PHV
Volkswagen Sharan/Ford Galaxy £30,000 – £40,000 MPV for 6+ Passengers
LEVC TX £38,000 – £46,000 Wheelchair-Accessible Electric PHV

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Tax benefits

A private hire vehicle is a car for tax purposes, so it doesn't qualify for the Annual Investment Allowance; instead, capital allowances depend on the car's CO2 emissions, with the best rates reserved for zero and very low-emission models. HMRC does carry a specific VAT exception for cars used mainly as taxis or private hire vehicles, self-drive hire cars, or driving instruction cars: unlike an ordinary company car, VAT on the purchase or lease of a qualifying PHV can normally be recovered in full rather than blocked. If you run the car through a limited company and also use it privately, a benefit-in-kind charge is likely to apply; sole traders instead have their allowances and running costs restricted in proportion to any private mileage.

Market context

Private hire vehicles are bought by self-employed PHV and minicab drivers and by private hire operators building a fleet, typically choosing a saloon, estate, or hybrid for fuel economy and reliability over the high daily mileage the work involves. Most drivers finance rather than buy outright because the car needs to be earning from day one, and a large upfront payment competes directly with income. Replacement cycles tend to be shorter than for a typical private car owner, driven by local authority PHV licensing conditions on vehicle age as well as by mileage and wear from near-constant use.

Bad credit?

Several of our 200+ lenders specialise in businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

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Frequently asked questions

Can I finance a used private hire vehicle?
Yes. Most lenders will finance a used private hire vehicle up to around 6 years old at the start of the agreement, and some will go older case by case. Rates on used equipment typically run 0.5–1% higher than new because residual values are less certain. Local licensing authorities also set their own maximum vehicle age for PHV registration, so check that before financing a used car. An independent inspection or valuation is common for older or higher-value vehicles before the lender confirms terms.
What deposit do I need for private hire vehicle finance?
For hire purchase, most lenders ask for 10–20% deposit. Finance lease and contract hire agreements often need no deposit at all, since the lender keeps an interest in the private hire vehicle throughout the term. Putting down a larger deposit reduces your monthly payments and can unlock a better rate, but it isn't compulsory on most deals; it's a trade-off between cash flow today and the total cost of the agreement.
How quickly can I get private hire vehicle finance approved?
Straightforward applications for a private hire vehicle under £40k are commonly approved within 24–48 hours, and same-day decisions are possible once paperwork (bank statements, accounts, proof of ID) is in. Larger or more complex deals, multiple units, or first-time applicants without a strong trading history usually take longer, sometimes 5–7 working days, while the lender reviews the business case and, for higher-value assets, arranges an inspection.
Do I need to have been trading for a minimum period?
Most mainstream lenders look for 1+ years of trading history before offering standard rates and terms on private hire vehicle finance. Newer businesses aren't automatically excluded, but they may be asked for a personal guarantee from a director, additional security, a higher deposit, or a shorter term to offset the extra risk. Start-ups sometimes do better going through a broker who can match them to a lender that specialises in newer businesses.
Do I need my PHV licence before applying for finance?
You don't strictly need the licence granted before you apply, but most lenders will want to see that you hold, or have applied for, a private hire driver's licence and that the specific car will be licensed by your local authority, since PHV work is what makes the income used to assess affordability. If you're new to private hire, having your licence application in progress and evidence of a booked-up operator or platform to drive for will usually strengthen your application.

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