Top 10 company lease cars
By FergusThere’s a reason business car leasing remains so popular - it makes perfect financial sense. As one of the UK’s leading car leasing companies, we know just how to make the most of a wide range of cheap lease deals for sole traders, partnerships and SMEs, with both cars and vans on offer.
For businesses, there are many benefits to leasing a car versus buying one outright or through a bank loan. With a company lease deal, you can concentrate on your core activities while avoiding the financial risk and administrative burden of owning your own vehicle or fleet. Contract hire is also a popular option with VAT registered companies, as it allows them to claim back 50% of the VAT for the supply of the vehicle.
Business lease customers have a specific set of needs when it comes to choosing a company car. As with personal car leasing, price and stock availability remain important, but BIK (benefit-in-kind) tax rates, P11D values and day-to-day running costs are also key considerations. However, with over 500 luxury car leasing models for your business to choose from, how do you decide which company car is right for you?
How do company cars work?
A company car is a car provided by a corporation or business to an employee for personal use as well as business purposes. The vehicle is generally leased or owned under the business' name and provided by the employer.
Traditionally company cars were purchased in bulk, and the keys were handed over to an employee. However, nowadays, many employees can select their company car from a list of options that their company limits.
In our Pros and Cons of a Company Car guide, you can find more about what a company car is and how a company car scheme works.
Is a company car worth it?
To decide whether or not a company car is worth it for you or your business, you must determine several different factors based on your personal preferences and circumstances.
Read our Pros and Cons of a Company Car guide to find out the benefits and the drawbacks of a company car.
What features should I look for in a company car?
The best company cars need to be comfortable, spacious and offer enough technology and features to make lengthy commutes and business trip trips more bearable. They also need to have low Benefit-in-Kind (BiK) liability rates that help you save money on your company car. Below are some key features to look for in a company car:
- Comfort and technology functions
- Safety devices
- Size of the vehicle
- Fuel consumption
- Overall performance
How is company car tax calculated?
The amount of company car tax you'll pay depends on your personal income tax bracket. Your tax rate will be applied to a percentage of the car's P11D value, which is the list price minus the first year's vehicle excise duty and registration fees.
For more information on company car tax and BIK tax, check out our Company Car Tax Explained guide.
Who insures a company car?
Usually, company cars are insured by the company that owns or leases the car, typically under a motor fleet multi-driver policy.
If you have a company car and need to arrange your insurance, some insurers may refuse cover as you do not own the vehicle. However, getting private insurance for a company car isn't difficult, and several insurers will cover leased vehicles if the lease is for at least a year.
What are the top 10 company lease cars?
Cars that feature in this guide include:
Top 10 Company Cars for 2022
1. Tesla Model 3
Top of the list is the Tesla Model 3, which is a brilliant all-electric choice as a company car. Being all-electric, the Model 3 produces zero tailpipe emissions, meaning it has a £86 annual BiK rate at 20% and a £172 annual BiK rate at 40%.
The Model 3's big battery pack offers an outstanding range of 254 miles and has access to Tesla's vast Supercharger network across the UK, making it ideal for business users who travel many miles. It also handles well around bends, and it's roomy inside with comfortable seating for five adults.
- Body type: Saloon
- Fuel: Electric
- Annual BiK rate 20%: £86
- Annual BiK rate 40%: £172
2. Volkswagen ID.3
The Volkswagen ID.3 is an excellent all-electric hatchback company car choice. It's spacious, comfortable to drive and has a range of 260 miles, ideal for all business trips. Since its launch, the Volkswagen ID.3 has won various UK awards, including the 'Best Small Hatch' at the UK Car of the Year Awards 2021.
The Volkswagen ID.3 has a £61 annual BiK rate at 20% and a £122 annual BiK rate at 40%, making it ideal for company car drivers. ID.3 also offers excellent boot space of 385 litres, perfect for carrying any luggage or business essentials.
- Body type: Hatchback
- Fuel: Electric
- Annual BiK rate 20%: £61
- Annual BiK rate 40%: £122
3. Skoda Superb
Next on the list is the Skoda Superb. Its comfortable, relaxing to drive and has excellent build quality all company drivers will appreciate. The Skoda Superb iV has an £848 annual BiK rate at 20% and a £1,696 annual BiK rate at 40% that company car drivers can take advantage of.
When it comes to cabin spaciousness and boot capacity, only a few cars of its size can match the Superb offering 660 litres of space. Plus, thanks to its well-equipped interior and comfy ride, the Skoda Superb iV is a great car to commute.
- Body type: Saloon
- Fuel: Petrol/Electric
- Annual BiK rate 20%: £848
- Annual BiK rate 40%: £1,696
4. Audi A6 Saloon
You would expect a big executive saloon like the Audi A6 Saloon to be quite expensive to have as a company car, but that isn't the case with the plug-in hybrid TFSI e model. Instead, its low CO2 emissions and £760 annual BiK rate at 20% and a £1,519 annual BiK rate at 40% make it an ideal company car.
The Audi A6 is a very comfy company car to commute in, and the interior is packed with plush materials, stylish glossy trims and large infotainment displays. There's also plenty of room for passengers and loads of room in the boot for any essential work gear.
- Body type: Saloon
- Fuel: Petrol/Electric
- Annual BiK rate 20%: £760
- Annual BiK rate 40%: £1,519
5. Volvo XC40
Next on the list is the Volvo XC40 T5 Recharge. The XC40 is comfortable and enjoyable to drive over long distances. Unlike most plug-in hybrid cars, the boot capacity hasn't been compromised by the necessity to accommodate a large battery pack. Instead, the XC40 T5 Recharge offers an impressive 452 litres of boot space.
The Volvo XC40 T5 Recharge has a £1,136 annual BiK rate at 20% and a £2,272 annual BiK rate at 40%, making it an excellent option for someone looking to lease a stylish SUV company car.
- Body type: SUV
- Fuel: Petrol/Electric
- Annual BiK rate 20%: £1,136
- Annual BiK rate 40%: £2,272
6. BMW 3 Series Saloon
The BMW 3 Series Saloon 330e is a hybrid executive saloon and is a great well-rounded company car. It has a £909 annual BiK rate at 20% and a £1,818 annual BiK rate at 40%, an ideal option for someone looking to lease a sporty executive company car.
The 3 Series 330e is practical enough for a company car and even a high-end family car. It offers more than enough space in the cabin and a decent amount of boot room with a capacity of 480 litres. The 3 Series is perfect for long trips up and down the motorway as its refined body allows the BMW to cruise with ease.
- Body type: Saloon
- Fuel: Petrol/Electric
- Annual BiK rate 20%: £909
- Annual BiK rate 40%: £1,818
7. Kia Niro EV
The Kia e-Niro is worth shortlisting for your next company car as it's a stylish, well-equipped SUV with a big boot space and a range of more than 280 miles. There is plenty of room inside the e-Niro, thanks to the batteries being located in the floor, which frees up space and creates a decent-sized boot.
You'll pay far less tax with an e-Niro than if you opted for a hybrid or plug-in hybrid model of the regular Kia Niro. As Kia e-Niro is fully electric, it has a £1,136 annual BiK rate of 20% and a £2,272 annual BiK rate of 40%.
- Body type: SUV
- Fuel: Electric
- Annual BiK rate 20%: £66
- Annual BiK rate 40%: £131
8. Land Rover Range Rover Evoque
The plug-in hybrid Land Rover Range Rover Evoque P300e is a great option if you're looking for a 4x4 as your next company car. It is relaxing to drive, has hi-tech functions, a luxurious cabin, and a cutting-edge exterior guarantee to stand out on the road.
The Evoque P300e doesn't only look fantastic and has a £1,010 annual BiK rate at 20% and a £2,019 annual BiK rate at 40%, ideal for divers looking for a luxury SUV company car. Plus, the Range Rover Evoque is incredibly spacious, with plenty of room inside to hold any work essentials.
- Body type: SUV
- Fuel: Petrol/Electric
- Annual BiK rate 20%: £1,010
- Annual BiK rate 40%: £2,019
9. Mercedes-Benz A-Class Hatchback
The Mercedes A-Class A250e is a great company car for someone looking for something a bit smaller than a saloon or SUV, perfect for long journeys and nippy around town. It has a well-equipped high-class interior that's great while driving to and from work.
The Mercedes A-Class has enough room for all passengers to ride in comfort and offer a decent sized boot for any work belonging with a boot capacity of 310 litres. Plus, thanks to the A-Class A250e low CO2 emissions and quoted electric-only range of up to 45 miles, it has a £493 annual BiK rate at 20% and a £986 annual BiK rate at 40%.
- Body type: Hatchback
- Fuel: Petrol/Electric
- Annual BiK rate 20%: £493
- Annual BiK rate 40%: £986
10. Toyota Corolla Hatchback
The Toyota Corolla Hatchback is a great choice for company car drivers, offering low company car tax, impressively low running costs and lots of space. It's a well-designed five-door hatchback with a spacious cabin and a large 361-litre boot, ideal for business drivers who need space for their daily tasks.
The Corolla is excellent to drive on long journeys, and inside it's relatively comfortable with plenty of adjustment for passengers to get comfy. Plus, thanks to its £1,1,83 annual BiK rate at 20% and a £2,366 annual BiK rate at 40%, the Toyota Corolla should be a bit more affordable than a conventional petrol or diesel family hatch.
- Body type: Hatchback
- Fuel: Petrol/Electric
- Annual BiK rate 20%: £1,1,83
- Annual BiK rate 40%: £2,366
Is car leasing a good idea for your business? Take a look at our car leasing comparison tool to find the perfect deal for you and your company.
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