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Best company cars 2021

From electric cars to petrol-engined cars, and from executive saloons to plush SUVs, these are our top 10 pics for the best company cars in 2021...


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What Car? team

Skoda Octavia Estate, BMW iX3, BMW 3 Series, Tesla Model 3

Choosing the right company car can be a tricky business, because as well as wanting a good car in its own right, you also need to be mindful of how much it will set you back in terms of company car tax. While this amount differs depending on whether you're a 20% or 40% tax payer, you'll want something with low CO2 emissions to keep the figure as low as possible

Here, we're looking at the best company cars regardless of their class. That's why you'll see a mixture of electric, plug-in hybrid and petrol-engined models on our list, as well as models from different classes, including executive cars and SUVs.

In each case on the list below, you can see the P11D price of our preferred model, as well as how much it will cost you if you're a 20% or 40% tax payer. And don't forget, you can read more about each car in our dedicated reviews, and see how much we can save you through our free New Car Buying service.

10

Skoda Superb

What Car? Target Price from

£23,726

RRP from £25,645 to £42,035

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Model iV SE Technology DSG | C02 31g/km | P11D price £32,255 | BIK tax rate 2020/21 @20% £423.06, @40% £846.12

It might not have the badge appeal of its executive saloon rivals, but what the Skoda Superb lacks in prestige, it makes up for in sheer space. Not only is this one of the most spacious cars in its class, but it's also supremely comfortable and well equipped. This version is also a plug-in hybrid, which means it can travel for up to 35 miles officially without using a drop of fuel. The corresponding low CO2 figures mean it's also kind to your wallet.

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Pros

  • Vast interior and boot space
  • Exceptional value for money
  • Classy, high-quality interior

Cons

  • Some rivals are more fun to drive
  • Diesel engines sound a little gruff
  • Automatic gearbox can be a tad jerky in traffic
9

Dacia Sandero

What Car? Target Price from

£7,995

RRP from £7,995 to £12,795

Model 1.0 TCe 90 Comfort | C02 120g/km | P11D price £11,365| BIK tax rate 2020/21 @20% £613.71, @40% £1227.42

The latest Sandero isn't just the best small car you can buy right now – it's the best car of 2021 full stop. Yes, our reigning Car of the Year is good to drive, has lots of space for your passengers and all of their luggage, and is comfortable for longer trips as well as short hops around town. Our favourite 1.0-litre petrol engine is a peppy performer, while Comfort trim gives the Sandero a hint of luxury, with features that include keyless entry and rain-sensing wipers.

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Pros

  • Amazingly good value
  • Lots of space for passengers and luggage
  • Comfortable ride

Cons

  • Poor safety rating compared with rivals
  • Entry-level trim is very basic
  • There are quieter small cars
8

Audi A3

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£22,707

RRP from £23,795 to £46,165

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Model 40 TFSIe Sport | C02 25g/km | P11D price £33,005| BIK tax rate 2020/21 @20% £0, @40% £0

This plug-in hybrid version of the Audi A3 family hatchback can officially travel for up to 40 miles without using a drop of fuel, and that means it won't cost you a penny in company car tax, whichever tax bracket you're in. Don't think the A3 is just good at saving you money, though – it's also good to drive, has an excellent driving position and a pleasant interior.

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Pros

  • Sharp handling
  • Excellent driving position
  • Strong and frugal engines, including the excellent plug-in hybrid

Cons

  • Interior quality is good but could be better
  • Fiddly infotainment system
  • Audi's unimpressive reliability record
7

Volkswagen ID.3

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£29,620

RRP from £29,620 to £38,800

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Model Pro Performance Life | C02 0g/km | P11D price £32,935 | BIK tax rate 2020/21 @20% £0, @40% £0

At the recent What Car? Car of the Year Awards, we named the Volkswagen ID.3 as our favourite small electric car, because it's good to drive, decently practical and has enough range to suit the daily needs of most drivers. This Pro Performance Life model can take you up to 263 miles between charges, and comes with all the kit you're likely to want, including adaptive cruise control, heated front seats and front and rear parking sensors.

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Pros

  • Good electric range
  • Sprightly performance
  • Decent to drive

Cons

  • Iffy interior quality, especially for the pricier versions
  • Charging network weaker than Tesla’s
  • Infotainment system needs some upgrades
6

BMW iX3

Model Premium Edition | C02 0g/km | P11D price £58,795 | BIK tax rate 2020/21 @20% £0, @40% £0

Despite being the first fully electric SUV BMW has ever made, the iX3 is the best car of its kind. It takes much of what we loved about the petrol and diesel-powered BMW X3 SUV and reduces its running costs by going electric. It offers an excellent range of up to 279 miles between charges and has plenty of space on board for your family and all of their luggage. That it also steers and handles far better than the majority of its rivals should please keen drivers.

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Pros

  • Longer range than most direct rivals
  • Great infotainment system
  • Comparatively well priced

Cons

  • Not as fast as rivals
  • E-tron is quieter
  • Tesla Model 3 has a longer range and faster charging
5

Ford Puma

What Car? Target Price from

£20,683

RRP from £22,045 to £29,460

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Model mHEV 155 Titanium| C02 127g/km | P11D price £22,560 | BIK tax rate 2020/21 @20% £1263.36, @40% £2526.72

The Puma is a former Car of the Year and remains our favourite small SUV. Not only does its clever mild hybrid system help reduce your running costs, but the Puma is also deceptively spacious inside; beneath its boot floor you'll even find a handy extra 'Megabox' storage compartment that can be hosed down after muddy treks with the family. It's great to drive, too, and Titanium trim has you well covered for kit.

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Pros

  • Great fun to drive
  • Remarkable blend of performance and fuel economy
  • Big and cleverly designed boot

Cons

  • Rear space is adequate rather than outstanding
  • Visibility could be better
  • Volkswagen T-Roc is more comfortable and quieter
4

BMW X5

What Car? Target Price from

£56,249

RRP from £60,035 to £78,635

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Model xDrive45e M Sport | C02 29g/km | P11D price £69,860 | BIK tax rate 2020/21 @20% £838.32, @40% £1676.64

The BMW X5 is our reigning Luxury SUV of the Year, and this plug-in hybrid xDrive45e version is our favourite. It has one of the longest official electric ranges of any plug-in hybrid, at 54 miles, which means it also has temptingly low CO2 emissions for remarkably low company car tax. Add in that the X5 is plush inside, loaded with kit and good to drive, and it's an easy car to recommend.

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Pros

  • Fantastic plug-in hybrid version
  • Great to drive
  • Classy, well-designed interior

Cons

  • Potential for road noise at speed
  • Third row of seats costs extra
  • There are more spacious and practical rivals
3

BMW 3 Series

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£32,102

RRP from £32,595 to £50,900

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Model 330e M Sport (Pro Pack)| C02 34g/km | P11D price £44,580 | BIK tax rate 2020/21 @20% £891.60 @40% £1783.20

Executive cars are often chosen as company cars and the BMW 3 Series is the best of the bunch. It's great to drive, has an excellent infotainment system and is spacious enough to be used as family transport at the weekends. Our favourite version is this 330e plug-in hybrid, which has an official electric-only range of 35 miles and low CO2 emissions – great news for company car tax. M Sport is our recommended trim level, while the optional Pro Pack adaptive suspension for the comfiest ride.

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Pros

  • Brilliant fun to drive
  • Class-leading infotainment system
  • Great range of engines

Cons

  • Ride is rather firm – particularly in M Sport versions
  • Not as well finished inside as an Audi A4
  • Adjustable lumbar support costs extra
2

Skoda Octavia Estate

What Car? Target Price from

£20,719

RRP from £22,215 to £36,875

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Model 1.4 TSI iV SE Technology | C02 23g/km | P11D price £32,130 | BIK tax rate 2020/21 @20% £385.56, @40% £771.12

The Skoda Octavia Estate manages to blend so many fine qualities, that it's little wonder that it features so regularly as a winner at our annual Car of the Year Awards. This plug-in hybrid version is frugal, spacious and good to drive, and comes loaded with equipment including a digital instrument panel, front and rear parking sensors and a 10.0in touchscreen infotainment system. 

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Pros

  • Supple ride most of the time
  • Huge boot
  • Low BIK rates for plug-in 1.4 TSI iV 204

Cons

  • Rivals are more fun to drive
  • A bit floaty over big undulations
  • Heating controls are in the touchscreen
1

Tesla Model 3

What Car? Target Price from

£40,990

RRP from £40,990 to £59,990

Model Long Range | C02 0g/km | P11D price £49,935 | BIK tax rate 2020/21 @20% £0, @40% £0

The Tesla Model 3 scooped our Large Electric Car of the Year prize recently, because nothing else can match its blend of range, comfort, performance and practicality. This Long Range model does exactly what it says on the tin, carrying you up to 360 miles between charges according to the official WLTP tests. Add in that it's also surprisingly practical for family life, the fact that it will cost you nothing in terms of company car tax, and the benefits of Tesla's ultra-fast Supercharger network, and we think the Model 3 is Britain's best company car in 2021.

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Pros

  • Savage acceleration
  • Long range between charges
  • Surprisingly practical
  • Fast charging via Tesla's prolific Supercharger network

Cons

  • Build quality could be better
  • Handling not as entertaining as petrol rivals
  • Some may find the ride a touch firm
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