Why it Costs OVER £20k to Drive a Taxi!

And it's gone up since last time!
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WHO AM I:
I’m Tom, a London Taxi driver of 6 years. I also have a keen passion for all things London whether that’s; history, geography or a good spot for coffee!
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CHAPTERS
00:00 - Intro
00:23 - The Essentials
03:47 - Optional Extras
05:53 - Running Costs
08:54 - Hidden Expenses

[@TomtheTaxiDriver]

Is it possible to BUMP up the taxi meter? kzbin.info/www/bejne/fKPLlXRjeNSXkJo

[@Zahoodo]

Tom u forgot car wash expensive and maybe food costs

[@jfwfreo]

Seeing all the costs you guys have, I can see why the black cabbies got so mad when Uber first showed up and all these new guys were driving around without all the mandatory costs (the Uber guys at the time weren't paying for badges, special insurance, criminal background checks, special inspections, specific mandated vehicles that cost a lot to buy and operate or meter rentals)

[@aussiewheelz2538]

Always love the content Tom.

[@listey]

Let's go! Been loving your content Tom :)

[@sparky6899]

Got my taxi plated yesterday tom. my insurance renewal quote went up £700 from last year, it's an absolute scandal.

[@80skid83]

Mine went up £500 this year too, work has been lean all year too.

[@lilxlilx3902]

Here in NYC average insurance for taxi drivers is between $6500 and $10,000 plus another $2000 in licenses fees and charges

[@grahamcutress47]

The question is after 5 years of TXE ownership will it start costing you more money in maintenance costs, is the battery as efficient as it once was etc… What will you make you decide to trade it in and finance a new one, is it because the asset has value still in the used market and the monthly repayments would be lower for the new one if you did it now… or do you just defer the full payment for a new one 3 or 4 years from now… it’s a very challenging situation

[@jamie1744]

Great video Tom !!

[@djmightymurph]

I’m a HGV tipper truck owner driver … just the cost of truck and diesel is £80k a year !

[@almuric1baggins337]

I thought most of you boys ran on cherryade most of the time! LOL

[@imconfused1237]

Yeah but so what? An average yard books its tippers to do 4 jobs a day. Even with cheap material, that’s a £1.5k load so at the very least it’s yielding £6k/day. Even if you only ran it for 150 days (to allow for maintenance, breakdown and work book) that vehicle yields £900k/year - a 10x return on its operating cost.

[@davidsnuggs7623]

Nice one Tom it’s amazing how much you need to work just to stand still

[@callumreece1889]

great video tom

[@jape7588]

Youre awesome Tom! deffo gonna try and catch a ride with you next time I go to London and need to get somewhere! xD As a Norwegian I love the black cab system

[@Wiki7202]

the break even point is mad! It is around the annual salary of a person on minimum wage in the UK (Probably not for London which would be a little higher)

[@user-xu5vl5th9n]

5 days a week does not sound economic. Needs 7 days a week, probably 16 hour+ days on a depreciated vehicle.

[@darrenblois8495]

Very interesting! But let's not forget, for a business such as a taxi, all those expenses are tax deductible (you only pay income tax on the takings less the expenses), so they are not directly comparable to what a consumer pays for his/her vehicle.

[@toastehh09]

They're not necessarily deductible, and further anything that is deducted is deducted at a rate of 20% (or 40% if you make more than £50k etc). You can also take out the proportional impact of your personal allowance - the less you make, the less benefit you get from deducting your expenses. Tax deductions are not a magic wand, they are a very conditional reduction of 20% to your expenses which in terms of cash are very slowly straightlined back to you through the payment on account system.

[@alexnaismith9979]

Hi the cost of my insurance has forced me off the road. Due to 3 fault claims since August 2021, I have 1 years NCB. Getting a company to quote was a nightmare. Companies that did quote , their price was unbelievable and unaffordable. Car is being returned to the finance by Voluntery Termination.

[@chrisardern4594]

You could possibly add another string to you bow by becoming a getaway driver since you know all the little roads in the area to get the crims out of the area the fastest route possible and the payout is tax free. Lol. On a serious note I certainly had no idea that it cost that much.

[@martinedwards7360]

Interesting vlog Tom. Once you've paid off the taxi ,you should invest that surplus into you pension plan. Or part of it. Although in the future you'll want or need to upgrade and replace your current vehicle. Massive fixed costs though.

[@lggsretrofinds4461]

Nice one tom bet your excited u dont have to pay the taxi bill anymore means less stress for you and more money coming in

[@suaier2952]

Tom i found you through sonny... And im glad i did... ❤️🌻

[@TomtheTaxiDriver]

Love that man 💪🏻

[@clarenceishmael9615]

I think Peter Jones or Deborah Meadon would say "it's just not a business so therefore I'm out!" You're going to get a lot of heat from the "denial brigade" but the truth is the truth! Well done for doing this video and keep up the good work. 👏🏾👏🏾

[@user-pl2th5wj2h]

Heavy shit Tom.As an ex-cabbie living in the Provinces the points raised in your informative video were the main reasons i drove for a group instead of becoming a 'taxi proprieter'.Whilst the costs of being in that position were nowhere near yours and your colleagues,it was still a heavy financial burden to manage.What with being strictly confined to a 'rank' and/or being part of a system by definition it was very much frowned upon if a cabbie cruised the area plying for hire.Bad form.So that on its own limited the amount of work one was given,so maybe swings and roundabouts.All said,love the channel been watching for years and oh what a relief it will be once the millstone of taxi finance is lifted!!!!

[@damianleah6744]

I ran a furniture delivery service in a medium wheelbase van for 20 odd years. People think you just put fuel and that’s it. I had to have hire and reward insurance, fully comprehensive insurance, goods in transit and public liability insurance. All before turning a wheel. So I for one completely understand where you are coming from.

[@kojakxx]

By the time you've paid off the taxi, a chunk of the money you save will have to go towards repairs.

[@zulfqarali905]

Hi Tom your videos give us real information on London and the history of London well done you keep it up you are doing a great job and having fun making some brilliant videos superstar Ali Walsall west midlands england junction 10 m6 Walsall churckery up the walsall

[@gerryaustin8687]

My commercial insurance (the states) is @$4300/yr per vehicle, youre doing pretty good

[@cliveramsbotty6077]

your fuel is literally half price compared to ours

[@InclusiveDriving]

As an A-Z lover, have you found any of the deliberate errors, printed to detect copyright infringement? Ps im around £600 per month better off now ive bought my learner car off the lease company!

[@johngreen6191]

Very rarely got 2 years out of a tyre. Screws, nails and potholes would see to that. A nightmare job now, everything recorded. To me it looks like a way to use up your life years and keep everyone else in employment.

[@Stuie2210]

Sure you must have some cleaning costs on there too, also can your accountant claim on the fuel cost?

[@n17hero]

I nearly spat my tea out when I saw that monthly purchase cost on the cab. I'm curious to know what margin the people you bought the cab from are making. I recall you mentioned that the type of cab you drive is about seventy grand. If I got a personal loan for that amount at 9.8% over 5 years, it comes in at around £1400 a month. Do you get stuff thrown in as part of that £1800 like you would with a leasing plan?

[@grahamcutress47]

£1087 a month dude! He’s got favourable terms on that deal

[@Stephen_Lafferty]

Thank you for this great breakdown of your annual running costs, Tom!

[@ruff1draft]

Just saw you on a food channel

[@michaelz.7140]

Depreciation if you lease your taxi?

[@chrisyhaigh6483]

I owned a taxi for 5 years tom Worst investment I ever made. The overheads and annual outgoings just got silly for trying to make profit Add to that the stress and anxiety of it all I hope your fair a lot better sir

[@80skid83]

I have owned mine for 3 years and it was my best ever investment in the job. Because I bought it like a month before businesses reopened from COVID so prices were still low as drivers were not buying cabs because of the uncertainty.

[@NorskInjustis]

Tom, thanks for the videos! I am a fan of all London black cab drivers, and the Knowledge. Another thing, odnt take thi the wrong way, but I got the idea for a TV series of a London serial killer that also is a cab driver. I think the profesion itself fits loonies, and of coure, there is the Iconic Taxi Driver with thath crazy leftwinger and shaite, has been actor, Bob De Niro! Anyway, steal that story and write it! It would be a GREAT series. Food, locations in London, etc. If you want to write an outlbe together let me know and I will buy you a ticket to Brazil, where I live, and we can have a meeting! Think about it.

[@stevenb2366]

Hi Tom will you trade in your vehicle or take out an extended 3 year warranty which I believe is another £5500 , between a rock and a hard place as I'm nearly hitting 150k mileage on my levc in Edinburgh, my expenses are around £27k a year doing just over 30k , people think that you make loadsa money in this game are way off as they don't realise the expenses to kick off with I enjoy your channel, be lucky

[@Craig-wp3pz]

It seems odd, but the COST to you, of working your Taxi, is MORE than I can earn as a HGV class 2 driver, working every possible shift, and getting a higher payrate for Crane/digger/Forklift licenses too! 😮

[@andywilliams8563]

I would look for a different company mate - if your maxing hours/overtime and only getting 20k a year then something is not right there

[@Craig-wp3pz]

@@andywilliams8563 35k pa, but after tax, its less..... walking out the door at the end of the year for 18-26k pa depending on contracts.... Not a lot left over for rent, fuel or a mortgage

[@Abc-li1ij]

@@andywilliams8563if you’re maxing all your hours out every week you’d want to earn £45-50k on class 2

[@andywilliams8563]

@@Craig-wp3pz fair one mate - it is hard. I used to be on the class 1's doing supermarket deliveries - it was good money but constantly maxing hours each week so gave it up in the end

[@80skid83]

​@@andywilliams8563that's right, these days 20k is van work let alone hgv

[@JamesGreen321]

That is absolutely mental mate. How do you even make any profit let alone put money aside for a rainy day 🤯

[@toastehh09]

Wow the 'vigilantes' are a bit of a mind blower. These are the same people who decree cops are bastards out doing their very best to be the worst kind of cop

[@cypriotkingyt2161]

What’s your income for your year kindly

[@itsafact7688]

I guess once the taxi has been paid off then the real money starts

[@ianstretch6815]

I’m a keen cyclist and a huge black cab fan - idiots ride and drive both

[@andyscot611]

I thought your taxi is 100% electric? Couldn't understand why you mentioned petrol or its a hybrid ? Confused

[@BenLovejoy]

They are hybrids. The battery range wouldn't cover a full working day.

[@speedstyle.]

I don't like the LEVC marketing, they put a tiny battery to make it 'zero-emissions-capable' even though they emit more overall than some pure petrols. They could easily fit 200mi+ in there, enough to go to Heathrow and back all day. Nissan Dynamo managed 170 lol, but they were ugly

[@fetchstixRHD]

Range extenders

[@richardpeters4086]

You forgot to add on for all the extra tatoos that you seen to have had !!

[@glenmason1876]

I don't think it's worth doing, too much outlay, public liability insurance is too expensive, it was worth doing before the pandemic, don't think it is now, I did a bit of private hire work in the 90s, that was awful money then, glad I'm retired now

[@backyardgrillmaster2910]

Let's say 40 hours a week regular Work Week here in the US 50 week what equal 2000 hours a year 10 dollars an hour would be $20,000 that's all I will look at it that way it'll make a little bit more sense than I get swallow a little easier😊

[@ianmitchell9102]

Tom you only do 20,000 mile per year ? I do 40,000….. and you get a service for £250 on an LEVC ? Please let me know where you go

[@TomtheTaxiDriver]

5th year service was approx £260. E1 taxis

[@michaelz.7140]

no brakes? with brake disks ? they are quite expensive.

[@fetchstixRHD]

Regen might mean relatively less disk brake use, to be fair...

[@iandrew6347]

Hi hi

[@ap9970]

How about drop off and parking charges at LHR/LGW? Cost me over £2500 last year

[@80skid83]

Drop off charges can be added to the meter, so customer pays

[@ap9970]

@@80skid83 customer pays for everything

[@Youj510]

One thing I don’t understand is why would anyone do a 2 to 4 year exam whatever it’s called when you can pass in one day when you work for a taxi company just 50/50 it mot tax and insurance work damage you don’t need to pay for nothing! just 50/50 simple I say

[@80skid83]

Not really anything like that in London though, unless minicab office which are largely gone now.

[@theroaringnoodle]

I think this video shows why there is less and less new black cab taxi drivers in the industry. Its not because of the knowledge but because its soo expensive to... work as a taxi driver. These numbers are scarry high and no sight of them going down soon :/

[@amardaman3371]

Who do you do pension with ....

[@soundpuppy1212]

Sonny brought me here.

[@dereckmason4788]

Dont forget taxi medical cost every 3 years you renew your badge thats what (£60@) £20 a years?

[@qaikhan2022]

Hi mate who is your account i need one im a taxi driver aswell

[@zulfqarali905]

Hi Tom bloody hell it is a lot of money 🤑💰 sir Tom obe well done for sharing this information it is great to know love the videos superstar 😁 Ali Walsall west midlands england junction 10 m6 Walsall churckery up the walsall you are a real London boy Ali Walsall west midlands england junction 10 m6 Walsall churckery up the walsall

[@josh8764]

Your taxi costs more than I make in a year

[@zulfqarali905]

Hi Tom keep it up you 😢😮😅😊 Ali Walsall west midlands england junction 10 m6 Walsall churckery up the walsall

[@loonranger469]

Tom the Tattooed Taxi Driver

[@ardaduck735]

I'm glad your taxi investment is getting paid off. You'll be able to earn more or have more free time to do things on your own

[@80skid83]

Only thing it will be older when it's paid off and then the money goes sideways towards repairs. This is what I'm getting now on a freehold taxi

[@seanshatters]

people with cameras are not vigilantes, vigilantes take the law into their own hands, they report matters ot the law, if you cannot drive legally you shouldnt drive at all

[@mrblobby1841]

Donut

[@seanshatters]

@@mrblobby1841 you sure are

[@Roy-qn2ie]

Not sure what to say, these expensive could be much or little it all depends on your earnings. 1600 pounds of costs a month based on your total vs a day of driving seems to be totally doable but who knows when we only see one side of it. The fact that you nearly payed your taxi off also signalyses that it aint that bad.

[@SimonLondon]

I think the 6 point rule is incredibly unfair! If anything, you guys should have 24 point rule as you are constantly keeping London moving!

[@insertyoutubeusername]

Wrong. No one is above the law and we all share the same driving standards. To get 6 points you have to be a pretty negligent driver!

[@grahamcutress47]

@@insertyoutubeusername it’s pretty easy to get 6 points, remember London has the most cameras per sq mile, 20mph limits everywhere, militant cyclists that could film you touching your phone (in its holder on the dash) there’s an instant 6 points! I drive nearly 100k a year for work, generally on the same roads but I’ve questioned whether I went past that last speed camera under the limit or whether that car behind me is an unmarked copper watching for a tiny mistake which can come from driving on auto pilot after doing the job for so long! How I haven’t gain a mark on my licence and that same 6 point limit implemented by my employer been hit I don’t know Until you’ve worked as a professional driver you don’t realise how close 6 points are!

[@insertyoutubeusername]

@@grahamcutress47 first of all, you can touch your phone while it’s mounted (granted you aren’t taking your attention away from the road), it’s only if it’s handheld..

[@insertyoutubeusername]

Read the Highway Code my friend

[@speedstyle.]

​​@@grahamcutress47 New cars including the TXe have speed limiters, so you can just set 20mph going into town and toggle it off when needed. Many even have GPS databases to move the limiter up and down automatically, or camera systems to read the signs.

[@insertyoutubeusername]

Tom, with respect, the ‘cycling vigilantes’ are only recording what is already happening - they aren’t forcing taxi drivers into illegal behaviour. If you do something illegal, then it’s on you and you should consider your livelihood before using your phone or driving dangerously. Just because your livelihood depends on driving doesn’t mean the same driving standards don’t apply to taxi drivers.

[@insertyoutubeusername]

I have multiple dashcam videos of taxi drivers running red lights. Should they be ‘let off’ because they’re better than the next driver?

[@Ian20232]

@@insertyoutubeusernamejust look at toms back videos and you see more cyclists running reds and doing things illegal than vehicles. Spend 1 hour at any city centre traffic light and cyclists far out way vehicles doing things illegal.

[@ryanoverlay4592]

@@Ian20232 others doing bad things doesn't justify you doing it too. Some people murder, do you think that's ok for you to do? Taxi drivers should be held to higher standards, not be looking for bad behavior to justify their own

[@mrstanhope1516]

Interesting to see cycling mikey‘s face on your video. He‘s had a few run ins with black cab drivers. A couple have got quite heated. Clearly a notorious character for a cabbie. Like others will no doubt say if you aren‘t breaking the law you have nothing to fear.

[@insertyoutubeusername]

@@Ian20232 I don’t disagree with you at all. Just because cyclists don’t get penalised doesn’t mean car drivers shouldn’t

[@adamjones7538]

Arrest the bicycle guy mikey.

[@welshieworldwide]

Why..??

[@almuric1baggins337]

And still you are not allowed to fly your own country's flag in your own vehicle, because of Mr Khan(T)!