Top 10 company lease cars

There’s a reason why leasing a company car remains so popular - it makes perfect financial sense. You can spread the cost of the car throughout the lease term and take advantage of various tax benefits for both employer and employee. 

When considering what company car to go from, there’s plenty to consider including BIK (benefit-in-kind) tax rates, P11D values and day-to-day running costs. You also need to think about how it looks, what it features, and whether you want an electric company car.

To help you out, this guide provides expert advice on the best company cars on the market and how to choose the right one for your business. 

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. 

Leasing a company car can be beneficial if you frequently travel for work, need reliable transport, and want to avoid the hassle of car ownership. 

For many, leasing a company car helps reduce personal expenses on car maintenance, insurance, and depreciation. It also emphasises to the employee that their employer cares about them, which is great for morale. 

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 learn about the benefits and drawbacks of a company car.

You can also check out our video for more information:

The best company cars need to be comfortable, spacious and come with enough technology to make lengthy commutes and business trip trips more bearable. They also need to have low benefit-in-kind (BiK) liability rates to help you save money on your company car. 

Below are some key features to look for in a company car:

• Comfort and technology functions - Look for a company car with heated seats and top-quality upholstery. Ensure it comes with the latest tech, like a touchscreen infotainment system, smartphone integration, and navigation.  
• Safety devices - Safety is a priority when on the road. Ensure the car has essential safety tech like parking sensors, blind-spot monitoring, and emergency braking.  
• Size of the vehicle - A company car needs to be better than a regular car. Ensure there’s plenty of space to get comfortable but also enough so that it’s practical. 
• Fuel consumption - A fuel-efficient company car reduces overall costs and boosts your environmental impact, which is a great look for your business. Why not consider an electric vehicle? 
• Overall performance - A company car will likely be racking up miles on the road, so ensure it has a powertrain that can handle long-distance driving. 

A common question company car driver’s ask is: how much company car tax will I pay? 

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.

Cars with lower emissions typically attract lower tax rates. Electric and hybrid options are popular among companies with a fleet of vehicles or looking to set up their own company car scheme because of their reduced tax implications. 

For more information on company car tax and BiK tax, check out our Company Car Tax Explained guide.

Electric vehicles (EVs) are increasingly popular in company car fleets due to low emissions and tax advantages. In the UK, EVs fall into lower Benefit-inKind (BIK) tax bands, which can save significant amounts for both employers and employees. 

For electric company cars, the BiK rate is frozen at 2% until 2025. Although increasing after that, they will still be much cheaper to tax compared to a petrol or diesel car. 

Many EVs also come with much lower running costs, making them a sustainable choice for businesses looking to reduce their carbon footprint. 

It’s worth noting that if you opt for an electric company car, you’ll need a workplace EV charging network. This includes the correct number of chargers, correct infrastructure, and maintenance. 

For more information, check out our comprehensive Guide to Workplace EV Charging. 

• Lower tax rates - In the UK, electric cars fall into the lowest BiK tax band, which means employees pay significantly less in company car tax compared to petrol or diesel cars. 
• Reduced running costs - Driving an EV is much cheaper than a petrol or diesel vehicle, especially if you have access to home or workplace charging. They also have less maintenance costs over the lease period thanks to less moving parts. 
• Corporate responsibility - Switching to an electric company car is a great way for businesses to show commitment to sustainability. Many clients and partners will see this in a positive light. 
• Access to clean air zones - Got clients in the middle of a busy city? When you have an electric company car you don’t have to worry about ULEZ or CAZ charges because they are exempt.

For more information, check out our YouTube video: 

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.

If you’re arranging your own cover, ensure that the policy covers personal use and non-business trips to avoid complications down the line.

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.