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Pros and Cons of a Company Car

Photo of Fergus By Fergus
19th January 2022
black and white row of cars

Benefits of a company car include:

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No financial ties for employee

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No unexpected costs

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Low Benefit-in-Kind (BIK) rates

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Recruitment incentive

Benefits of company car leasing include:

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A higher class of vehicle

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No depreciation costs

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You get to drive a new car

Potential drawbacks of company car leasing include:

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Vehicle restrictions

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Company car tax

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Fuel benefit tax

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You never own the vehicle

Increased liability

Not having to finance your own vehicle is a major advantage for many company car drivers, particularly during times of economic uncertainty. Yet it’s important to understand the tax implications, which can make driving a company car uneconomical in some circumstances.

David Johnson
Director - Nationwide Vehicle Contracts

Best company cars 2021

blue volkswagen id.3 driving at night
FROM £337.30 Price per month Incl VAT Latest deals
white volvo xc40 recharge driving on road
FROM £412.02 Price per month Incl VAT Latest deals
white range rover evoque on mountain road
FROM £513.91 Price per month Incl VAT Latest deals
black audi e-tron estate on dirt road
grey tesla model 3 driving fast
FROM £334.22 Price per month Incl VAT Latest deals

Guide Information

Photo of Fergus

About the Author: Fergus Gray

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