Here at Nationwide Vehicle Contracts, business car leasing remains as popular as ever with sole traders, partnerships and SMEs taking advantage of a wide range of lease deals on company cars and vans.
For businesses, there are many benefits to leasing versus buying a car outright or with a bank loan. With a lease deal, companies can concentrate on their core activities while avoiding the financial risk and administrative burden of owning their vehicle or fleet. Contract Hire is also a popular option with VAT registered companies as they can 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. While price and stock availability remain important, BIK tax rates (benefit-in-kind), P11D values and day-to-day running costs are also key considerations. But with more than 500 car models to choose from, what company car is right for you?
First up is the Peugeot 3008 Crossover, winner of over 65 international awards. This sleek and stylish SUV combines technology with elegance, offering great looks and a high-level build quality. Thanks to its spacious and practical interior, the Peugeot 3008 Crossover is one of the best cars in its class.
Our top recommendation is the Peugeot 3008 Crossover 1.6 PureTech 180 GT Line EAT8 which is particularly attractive to business drivers. Offering a 1.6 L 4-cylinder petrol engine, it is an extremely tax-efficient model and with a P11D starting from £33,135 and CO2 emissions at 129g/km, this Peugeot 3008 is in the 36% BIK band, meaning a low cost of tax per month. Add to this a sharp design, advanced technology and a generous specification as standard and you can’t go wrong.
View our latest business lease offers on the Peugeot 3008 Crossover with road tax, breakdown recovery and free GB mainland delivery (exclusions apply), all included in the monthly rental.
The Toyota Corolla Touring Sports estate hybrid is our second choice for company-car drivers, offering impressively low running costs, low company car tax and lots of space. It's a 5-door estate which is well-designed, has a comfortable cabin and a huge 581-litre boot, great for business drivers who require space for their everyday activities. Additional features within the range include a sat nav, front and rear parking sensors and voice recognition, making travel so much easier.
We recommend the Toyota Corolla Touring Sport 1.8 VVT-i Hybrid Icon CVT Lease. With a P11D value of around £26,305, this Corolla Touring Sport boasts low CO2 emissions of 103g/km ensuring a low company car BiK rate, falling into the 23% tax band.
View our latest business lease offers on the Toyota Corolla Touring Sports Estate with flexible mileage and contract terms available.
Our third choice, the Volvo XC60 Hybrid, is a good-looking, comfortable and refined SUV, packed with an array of modern tech, making it perfect for conducting business on a day-to-day basis.
Business users will find the Volvo XC60 2.0 B5P (250) Momentum Geartronic a good option, offering a number of advantages, the first of which is incredible on-paper fuel economy of 134.5mpg. Its minimal CO2 emissions of 49g/km gives it a low BIK rating, with a 9% BIK company car tax liability compared to 28%-32% for the diesel and petrol models.
The XC60 is a desirable car, with exceptional build quality, a smart and minimalist interior design, great rear space and boot room, making it an excellent company car choice. View our latest business lease offers on the Volvo XC60 with selected models in stock for quick delivery.
Our fourth choice is a great match for business executives who like a bit of luxury. The BMW 3 Series Hybrid Saloon boasts an all-electric range of up to 36 miles, as well as a host of awards including ‘Best Luxury Car’.
This sleek saloon offers a 2.0-litre turbocharged petrol engine, allied with a punchy electric motor and new lithium-ion battery pack for CO2 emissions of 30-38g/km depending on specification and whether you choose rear- or four-wheel drive. The 330e also holds strong appeal for company-car drivers who will be tempted by its low Benefit-in-Kind (BiK) rate starting at a low 10%.
We particularly recommend the BMW 3 Series Saloon 330e SE Pro Step Auto Lease offering an impressive top speed of 143mph and tax rates starting around £65 per month. View our latest business lease offers on the BMW 3 Series Hybrid Saloon including road tax, breakdown recovery and free mainland GB delivery (exclusions apply).
Next on the list is the Skoda Superb iV plug-in hybrid, joining the Superb range as Skoda’s first electrified car this January 2020. Company drivers will appreciate the Superb’s comfortable and relaxed driving manners, as well as the excellent build quality.
The Superb iV uses a 1.4-litre petrol engine, electric motor and battery, which together can deliver up to 34 miles of electric range. The main reason company car drivers will go for this powertrain over the diesel is because of the significant BiK tax savings. Its CO2 emissions range from just 35g/km, putting the new car in the 16% benefit-in-kind (BIK) bracket.
The Superb iV is available in a range of equipment grades, SE Technology, SE L, Sportline, Laurin & Klement. We recommend the Skoda Superb Estate 1.4 TSI iV SE Technology DSG Lease, offering a range of features such as 17-inch alloy wheels, leather upholstery, four electric windows, remote central locking, electrically adjustable driver's seat, dual-zone climate control, multifunction steering wheel and an 8-inch infotainment system.
View our latest business lease offers on the Skoda Superb IV with flexible mileage, contract length and initial rental terms.
No company car list would be complete without the Ford Focus Estate. This extremely practical vehicle is a popular choice for business fleet customers looking for a vehicle with a spacious load area. Carrying over identical petrol and diesel engine choices from the hatchback range including Ford's latest mild hybrid MHEV engines and equipment grades including Titanium, ST-Line and ST-Line X, the Focus Estate offer ticks all the boxes for performance, value and reliability.
We recommend the Ford Focus Estate 1.5 EcoBlue 120 Zetec Edition which is an affordable choice for business drivers. With a P11D value of around £23,810 and 111 g/km of CO2 emissions, it falls into the 31% benefit-in-kind (BIK) bracket. It also includes an enhanced a reverse parking aid and an intelligent navigation system.
View our latest business lease offers on the Ford Focus Estate with selected models in stock for quick delivery.
The Toyota Prius has long been considered a pioneer in hybrid technology. Now in its fourth generation, the Prius has recently been given a recent facelift, but it still looks and feels like an evolution of previous versions.
The Prius holds a P11D from £32,070 returning 29 to 35 g/km CO2 emissions placing it in a low benefit-in-kind (BIK) bracket of 10% for the year 2020/2021. For business lease drivers we recommend the Toyota Prius 1.8 PHEV Business Edition Plus 5dr CVT, with a Petrol/Plug-in Electric-Hybrid engine. The Business Edition includes touchscreen sat-nav, Bluetooth and a DAB radio, automatic headlights and a head-up display to help you through your busy working day.
View our latest business lease offers on the Toyota Prius with breakdown recovery, road tax and free mainland GB delivery included in the monthly rental.
Mercedes-Benz offers their luxurious plug-in hybrid E-Class Estate, a great choice for business users looking for a premium executive car with load carrying practicality and the driving attributes, engine performance and technology found in the saloon.
Mercedes-Benz offers the plug-in hybrid E-Class with both petrol and diesel engines, known as the E 300 e and the E 300 de respectively. A great choice would be the Mercedes-Benz E-Class Estate E300de AMG Line 9G-Tronic, which uses a 191bhp 2.0-litre, four-cylinder diesel engine with a 121bhp electric motor for a maximum output of 302bhp, allowing 34 miles on electric power alone.
With a higher P11D value of £52,225, its 40 g/km output of CO2 emissions brings it right down to the 10% benefit-in-kind (BIK) bracket for the year 2020/2021. On top of this, it also has some great features such as, Bluetooth, 18inch alloys, luxurious leather, climate control and heated seats.
View our latest business lease offers on the Mercedes E-Class Estate with flexible mileage, contract length and initial rental terms available.
Another one of our company car favourites is the Skoda Scala, a good-looking hatchback combining excellent passenger space and kit at a very reasonable price.
We like the Skoda Scala 1.0 TSI 115 SE, a stronger 113bhp version of Skoda’s 1.0-litre three-cylinder engine is more than enough around town and on the motorway. Returning 51mpg, which will make your money go further while CO2 emissions of 125g/km keep company car costs down. With a P11D value of around £20,295, its falls into the 29% benefit-in-kind (BIK) bracket for the year 2020/2021.
Features on the Skoda Scala include an 8-inch infotainment screen, cruise control and rear parking sensors, while the 467-litre boot and roomy interior mean it’s amazingly practical for the money.
View our latest business lease offers on the Skoda Scala with selected models in stock for quick delivery.
Finally, we are going to end on a truly compact SUV, the Citroën C3 Aircross. This SUV is strikes a balance between a compact city-friendly exterior and a spacious interior with up to 520L of boot space and versatile rear seating configuration.
It may not be the most obvious choice as a company car, but the C3 Aircross is a smart option, providing drivers with plenty of upsides in terms of cost and features. The diesel engines on offer can achieve a quoted 69mpg and 71mpg, while also developing lower emissions than the petrol offerings, however petrol versions can still return well over 50mpg.
We personally love the Citroen C3 Aircross 1.2 PureTech 110 Feel, with a stylish interior and quality trim which includes a 7-inch touchscreen, cruise control, Bluetooth connectivity and Apple CarPlay. With a P11D value of £18,920, it gives off 141g/km of CO2 emissions placing it in the 31% benefit-in-kind (BIK) bracket for the year 2020/2021, meaning its monthly BiK rate can be as low as £69.
View our latest business lease offers on the Citroen C3 Aircross with road tax, breakdown recovery and free mainland GB delivery (exclusions apply) included in the monthly rental.
Looking for your next company lease car? Visit Nationwide Vehicle Contracts for exclusive lease deals especially for sole traders, partnerships and SMEs.