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:
- Tesla Model 3
- Volkswagen ID.3
- Skoda Superb
- Audi A6 Saloon
- Volvo XC40
- BMW 3 Series Saloon
- Kia e-Niro
- Land Rover Range Rover Evoque
- Mercedes-Benz A-Class Hatchback
- Toyota Corolla Hatchback