Switched On Taxis Loan: A Complete Guide
A complete walk-through of the Switched On Taxis Loan, and how it could help you as a taxi driver in Scotland.
Summary
- Funded by Transport Scotland and managed by the Energy Saving Trust, the loan helps taxi drivers in Scotland to cover the costs of buying an electric taxi.
- The loan is interest-free and repayable over six years, and it can be used to purchase both new and used electric vehicles.
- It’s open to operators or those who own a hackney cab, as well as private hire drivers.
- The amount you can borrow depends on whether you are purchasing a new or used taxis, and if you are a limited company, sole trader, or partnership.
Table of Contents
1. What is the Switched On Taxis Loan?
3. Buying a used electric taxi
4. Am I eligible for the Switched On Taxis Loan?
5. How do I apply for the Switched On Taxis Loan?
5. Grants and incentives at The Taxi Centre
What is the Switched On Taxis Loan?
The Switched On Taxis Loan is a government initiative led by Transport Scotland and the Energy Saving Trust. It helps taxi drivers to cover the costs of purchasing both new and used electric taxis.
The loan is open to:
- Operators
- Hackney cab owners
- Private-hire drivers
Depending on the taxi you intend to purchase you could borrow:
For new taxis
- Up to a maximum of £150,000 for limited companies
- Up to a maximum of £75,000 for sole traders or partnerships
For used taxis
- Up to a maximum of £90,000 for limited companies
- Up to a maximum of £75,000 for sole traders or partnerships
Buying a new electric taxi
If you plan to buy a new, purpose-built electric black cab for your taxi business. You can use the loan to cover the costs of an eligible taxi from the UK’s OZEV Plug-in Taxi Grant (PiTG) list.
However, if you plan to purchase a non-purpose built electric vehicle , the loan can offer help with purchasing:
- Electric cars (under £50,000 or less) with a maximum loan of £30,000
- Electric vans (under £50,000 or less) with a maximum loan of £35,000
Buying a used electric taxi
Used electric taxis can be a great way to save money, especially if purchasing your first electric taxi. Under the UK’s PiTG scheme, the loan could help cover the cost of one used, purpose-built electric black cab with a maximum loan of £50,000.
For used, non-purpose-built taxis, you could use the loan for:
- Electric cars (under £30,000 or less) with a maximum loan of £30,000
- Electric vans (under £30,000 or less) with a maximum loan of £30,000
Am I eligible for the Switched On Taxis Loan?
To be eligible for the Switched On Taxi loan, there are three sections of criteria you must meet: A, B, and C.
Section A criteria lists the basic requirements you need to meet if applying for funding. Some points from this section state that:
- You must be the person who has ordered or will order the vehicle, and be its intended owner
- You must not currently receive any other funding from the Scottish Government for such purposes
- Your business must be based in Scotland and you will need to demonstrate proof of this. You’ll also need to show how your employees will benefit from having electric vehicles in your taxi fleet
- You must have been trading for at least 12 months
- The loan will only cover the costs of basic taxi vehicles with a standard specification. You will be responsible for paying for any delivery costs, add-ons, or extras and any non-standard changes made to the vehicle(s)
- You must not take ownership of the vehicle prior to receiving the loan otherwise your application will not be processed
- You must be able to repay the loan and pass a credit check by a credit reference agency prior to submitting your application. If applying for a loan of £75,000 or more, you will need to submit a full year of financial accounts
Sections B and C are the additional criteria you’ll need to meet depending on whether you’re applying for funding for a new or a used electric taxi. Read the full list of requirements for each section in the Eligibility Criteria document.
If you are applying for a new, purpose-built electric taxi , you’ll need to provide:
1. A taxi fleet review or vehicle comparison report from your sustainable transport coordinator following your enquiry
2. Any quotes for the vehicles you intend to buy using the Switched On Taxi loan
Alternatively, if you are buying for a non-purpose-built electric vehicle, you will need to submit:
1. Your V5 registration certificate (including all pages)
2. Any quotes for the vehicles you plan to purchase with the Switched On Taxi loan
For used electric vehicles, you will need to buy from an acceptable dealership. This can be a dealership where sales are conducted in-person and online or a reputable online dealership, such as The Taxi Centre.
How do I apply for the Switched On Taxi loan?
If you are interested in applying for the loan, all you need to do is fill out a Business Transport enquiry form .
The form will ask you to provide details on your organisation including your taxi fleet size and postcode. As well as your own personal details, and reason for getting in touch (here, you’ll select Switched On Taxis Loan).
Due to high volumes of enquiry, you should receive a response from EST within 10 working days.
Grants and incentives at The Taxi Centre
We hope you feel well-informed about the Switched On Taxis Loan in Scotland. For more information on the loan, visit the Energy Saving Trust's website .
At The Taxi Centre, we’re not just here to help you find the perfect new taxi - we’re here for your business too. That’s why we’re dedicated to keeping you up to date on the latest grants and incentives available in your area.
As a reputable taxi specialist with strong supplier relationships nationwide, we’re able to bring you access to taxis from top manufacturers such as Skoda and Toyota at competitive prices.
We also help you get more for your business with helpful tips and insights - from electrifying your fleet to improving your customer service and more. Take a look at our newsroom!
If you have any questions about grants or incentives or need help finding your next taxi, get in touch with a member of our friendly team. We’ll help you get sorted!