Being a private hire driver in London can be a profitable career choice, but it also comes with significant financial challenges. One of the biggest hurdles drivers face is the upfront cost of buying a private hire vehicle.
This is because vehicle costs are rising and the costs of insurance, maintenance, and private hire licensing can be hard to manage as well. Most PCO drivers don’t have enough capital to tackle these expenses, especially those who are new to the industry.
This is where PCO car hire comes in! It allows you to drive a fully licensed private hire vehicle without breaking the bank.
In this article, we will take a look at why PCO hire is a smart choice for drivers who cannot afford to buy fully licensed private hire vehicles upfront. But first, let’s discuss the true cost of buying a car.
The True Cost of Buying a PCO Car
Owning a vehicle may seem like the best option when you rely on it for daily income. However, a car that fully meets the TfL criteria can cost you between £20,000 to £40,000. Plus, you have to pass credit checks and deal with a lot of documentation that not only stretches your budget but can also be mentally draining. On the other hand, PCO hire companies help you avoid all that. Here’s how.
How PCO Hire is A Convenient Choice for Private Hire Drivers
Many PCO drivers prefer hiring over buying due to the following reasons:
No Large Deposit or Purchase Price
PCO hire companies don’t require you to pay a huge upfront deposit. You can get behind the wheel of a fully licensed private hire vehicle with a refundable deposit of just £250-£500 and a weekly fee that covers everything you need.
No credit checks, loans, long waiting periods, or months of savings. Just pick a car provider with a good reputation in the industry, and you can get behind the wheel of a TfL-approved car within a day. Some companies even let you drive away within 20-25 minutes.
However, you must have a full UK driving licence with a separate private hire driving licence to be able to hire a car.
Insurance Included in the Package
Finding private hire insurance can be a real hassle. Not only is it more expensive than regular car insurance, but it also has strict criteria, and doing everything on your own, especially when you are new to the industry, can be a real challenge.
With PCO car hire, you don’t have to worry about high insurance premiums or complex paperwork. The car provider will deal with everything with a manageable cost included in your weekly hire fee.
Just make sure your package includes comprehensive insurance because this is the only policy that gives you full protection for car body repair to fix the damage after an accident. Other policies offer partial cover, which can leave you vulnerable when someone files a claim against you.
24/7 Breakdown Cover
Breakdowns during shifts can be a nightmare for PCO drivers. They can strike out of nowhere and leave you stranded on the road, causing frustration to passengers who can leave negative feedback if the problem is not fixed quickly.
With PCO hire, you get breakdown cover as well. This means whenever your car malfunctions while you are doing your shift, you don’t have to search for a garage or arrange a tow truck. Just inform your car provider about the problem, and they will either assist you over the phone or send help in person if the problem is serious.
Some companies also provide a replacement vehicle in case the repairs are likely to take more than a few hours, so you can keep driving and earning.
Servicing and Maintenance
Even after TfL has licensed a PCO car, it requires regular servicing and maintenance to stay roadworthy. To check the car’s roadworthiness, TfL performed MOTs every six months and annual inspections before renewing the car’s licence.
Failing an MOT test or annual inspection means you can no longer carry paying passengers in your car legally.
With PCO hire, you don’t need to worry about servicing and maintenance as well. The car provider is responsible for ensuring the car’s roadworthiness, taking another responsibility off your shoulders. However, you must still use the car carefully because the repair bill for any damage caused by your negligence comes out of your pocket.
The cost of servicing and maintenance is also included in your weekly hire fee.
Flexible Packages
Another benefit of hiring over ownership is the flexibility. Owning a car means you are stuck with the same vehicle even when the demand is low. On the other hand, PCO hire packages are flexible. You can return the car on short notice and upgrade or downgrade depending on the demand.
How is this useful for private hire drivers?
Let’s suppose you drive a 7-seater for airport runs, but there’s suddenly a drop in demand and you are not getting enough rides to afford its high running costs. With PCO hire, you can switch to a standard car with low running costs and weekly fees for the slow period, and get back to a top-spec model when the demand increases.
This helps you stay on the road while keeping your expenses under control.
Final Thoughts
The bottom line is that owning a private hire vehicle isn’t possible for many PCO drivers. Even if you can afford to buy one, there are ongoing costs and admin related to car insurance, maintenance, licensing, and more. All of this can be hard to manage on your own, particularly if you are new to the industry.
PCO car hire, on the other hand, helps you get started quickly without any massive upfront costs or ongoing expenses. Everything you need is covered by one weekly fee so you can simply focus on driving and delivering a pleasant passenger experience.
Also Read: The Unsung Hero: How Engine Oil Protects Your Car’s Moving Parts
