Page Header

0345 811 9595

Mon-Fri 9am to 5.30pm

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:

graphic of person with orange tick

No financial ties for employee

graphic of pile of money

No unexpected costs

graphic of tax document

Low Benefit-in-Kind (BIK) rates

graphic of personal car lease

Recruitment incentive

Benefits of company car leasing include:

graphic of exclusive lease deals

A higher class of vehicle

graphic showing vehicle price

No depreciation costs

graphic for status symbol

You get to drive a new car

Potential drawbacks of company car leasing include:

graphic of car brakes

Vehicle restrictions

graphic of tax document

Company car tax

graphic of fuel pump

Fuel benefit tax

graphic of car price

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 £382.58 Price per month Incl VAT Latest deals
white volvo xc40 recharge driving on road
FROM £402.96 Price per month Incl VAT Latest deals
white range rover evoque on mountain road
FROM £452.77 Price per month Incl VAT Latest deals
black audi e-tron estate on dirt road
FROM £316.49 Price per month Incl VAT Latest deals
grey tesla model 3 driving fast
FROM £316.77 Price per month Incl VAT Latest deals

Guide Information

Photo of Fergus

About the Author: Fergus Gray

You may also like...

Company Car vs Company Car Allowance

Company Van Tax Explained

Van Leasing and Tax Benefits

Was this page helpful?
Thank you for your feedback!