The best company cars you can get in the UK
You've landed a new job and one of the benefits is a company car – so which of the approved models should you choose?
Well, it's not as simple as just picking a car that meets all your practicality requirements, is good to drive and has strong ratings in the other areas that are important to you. Ideally, it will also help you keep your monthly costs down by attracting a low rate of benefit-in-kind (BIK) tax.
To help you crunch the numbers and make your decision, here we list the 10 best company cars alongside the monthly cost in BIK tax for 20% and 40% taxpayers in 2025/26 (you can check any model's BIK rating using our company car tax calculator).
Best company cars to choose now – and how to get the best deal
| Make and model | List price from | Rating | PCP deals | Leasing deals |
| Tesla Model 3 | £37,990 | 5 | Best PCP deals | Best leasing deals |
| Kia EV3 | £33,055 | 5 | Best PCP deals | Best leasing deals |
| Skoda Elroq | £33,970 | 5 | Best PCP deals | Best leasing deals |
| MG HS | £26,945 | 5 | Best PCP deals | Best leasing deals |
| Volkswagen Passat | £40,875 | 5 | Best PCP deals | Best leasing deals |
The best company cars for you
The Tesla Model 3 is the most well-rounded company car on sale, offering a long range, excellent long-distance comfort and more practicality than you might expect.
Want something SUV-shaped? The Kia EV3 is the best car of its kind, combining a long range with decent space for your passengers and a plethora of standard kit.
Or for the budget-conscious, the Skoda Elroq represents outstanding value for money, plus it's roomy and comfortable to drive over long distances.
Alternatively, if you already know what type of company car you want but are not sure which model to get, we have some other handy guides you might find useful:
Best plug-in hybrid company cars
Best electric company cars
Best SUV company cars
Best small company cars
Cheapest company cars
General advice to help you find the best company car
If you can, it pays to go electric for your next company car. The super-low BIK tax rate applied to models with no exhaust emissions means you'll have to hand over less than for any other type of car, including plug-in hybrids (PHEVs) and regular hybrids.
Before you decide what to go for, you'll also want to consider the types of journeys you'll be doing – whether your commute is short and mostly on urban roads, for example, or if you regularly need to use the motorway – and how practical it might be for family use.
Most company cars are leased over periods of three or four years, so it's also worth thinking about whether your needs are likely to change in that time.
When speccing up a company car, be aware that making small changes can add up to big increases in your monthly bills. To learn more about that see our guide to cutting your BIK tax bill. But what are our top 10 recommendations?
Our pick RWD Monthly BIK tax at 20% £25 Monthly BIK tax at 40% £50
While the Model 3 has been on sale in the UK since 2019, Tesla has treated it to numerous upgrades over the years – both via remote software changes and more traditional methods, including a facelift in 2023.
Among other things, the latter addressed two of the Model 3’s initial weaknesses – build quality and refinement – helping to turn it into the best executive car around in the process.
On the other hand, from day one it offered surprising practicality, a long range and was fast and enjoyable to drive. And, to this day, these things remain strengths of the car. Even the cheapest versions can officially hit 60mph in just 6.2 seconds, which is quicker than the equivalent Hyundai Ioniq 6 and roughly on par with the BMW i4.
Inside, the Model 3 scores another point against its BMW rival by feeling more airy in the rear seats, especially for middle-seat passengers who have plenty of space for their knees and feet. There's also more boot space than you'd find in the i4, plus a separate 'frunk' under the bonnet to store your charging cables.
Like all Teslas, the Model 3 also gets preferential access to the brand’s widespread and reliable Supercharger network. And our Real Range tests have consistently shown that the Model 3 is one of the most efficient electric cars you can choose.
In the 2025 What Car? Reliability Survey, Tesla came a respectable seventh place out of 30 car makers, while the Model 3 itself came eight in the electric car class. It should be reliable to run, then.
Add all of that to the lowly BIK tax rate that it attracts as an EV, and you’ve got the best company car available today.
“The Model 3 has a lower starting price than most of its rivals, which I find particularly impressive when you factor in how much equipment most versions come with as standard.” – Claire Evans, Consumer Editor
Read our in-depth Tesla Model 3 review
- Lower total monthly cost than PCP/HP
- No balloon payments
- Road tax included
Our pick Standard Range Air Monthly BIK tax at 20% £22 Monthly BIK tax at 40% £44
Fancy running an electric SUV rather than an electric saloon as your company car? Then the Kia EV3 is our top recommendation. But why?
Well, for starters, it’s an SUV that really does feel like one when you’re behind the wheel, because you sit in an upright position and noticeably farther from the road than in most rivals.
The range is good, too: even the smaller, Standard Range battery delivers 270 miles (officially), while the Long Range ups that figure to 375 miles. And instead of trying to defy physics, and make this tall car handle like a hot hatch, Kia has concentrated on ensuring it has a super-smooth ride.
Refinement is excellent, and you'll struggle to hear any noise from its electric motor under acceleration. While the Skoda Elroq is ever so slightly quieter on the motorway, the margins are small.
When you need to charge up, Standard Range models can accept charge at speeds of up to 100kW, which matches the Hyundai Kona Electric. Long Range models, meanwhile, can accept 135kW, but because these have bigger batteries, the time taken to complete a 10-80% charge is actually longer.
Kia generally performs well in our annual Reliability Survey, with the EV3 being rated as the most reliable electric SUV in our most recent survey. Better still, the EV3 is backed up by a seven-year, 100,000-mile warranty, with the battery covered for up to eight years.
A good-sized boot and a fairly roomy interior with an intuitive dashboard layout complete a superb all-round package.
"I suspect some customers will be disappointed that Kia doesn't fit a heat pump as standard to improve efficiency in cold weather. You can have one, but you'll need to go for range-topping GT-Line S trim and then pay extra." – Will Nightingale, Reviews Editor
Read our in-depth Kia EV3 review
- Lower total monthly cost than PCP/HP
- No balloon payments
- Road tax included
Our pick 85 Edition Monthly BIK tax at 20% £26 Monthly BIK tax at 40% £52
A slightly bigger option than the EV3 is the Skoda Elroq, and this is reflected inside, where you get loads of space – both for passengers and luggage. With 470 litres available in its boot, the Elroq can squeeze in six carry-on suitcases. That's pretty much in the middle of the family electric SUV class, but it's worth noting that the MG S5 can hold onre more.
We recommend opting for the Transport Package if your fleet manager will let you, because this adds a handy net under the parcel shelf for your charging cable, along with a height-adjustable boot floor.
The Elroq's interior features a pleasing mix of soft-touch plastics and fabric trim. And while you don’t sit as high as you do in the EV3, the driver’s seat still offers excellent support and lines up perfectly with the steering wheel and pedals.
Driving dynamics are another strong suit of the car, with it striking a fine balance between comfort and control, and feeling nimble in town, thanks to a tight, 9.3-metre turning circle.
Our favourite version has an official range of 355 miles that adds to the Elroq’s credentials as a great way to cover big distances. The smaller battery fitted to the Elroq 60 offers an official range of 267 miles, which is still enough to suit the needs of most buyers. Both Elroq models are rear-wheel drive – if you want four-wheel drive, you'll need to persuade your fleet manager to go for the range-topping Elroq vRS.
“I like that Sportline models let you adjust the strength of the Elroq's regenerative braking using paddles on the steering wheel but I wish they were standard across the range.” – Steve Huntingford, Editor
Read our in-depth Skoda Elroq review
- Lower total monthly cost than PCP/HP
- No balloon payments
- Road tax included
Our pick 1.5T Plug-in Hybrid SE Monthly BIK tax at 20% £37 Monthly BIK tax at 40% £75
Not ready to go fully electric? Well, don’t worry because our reigning Plug-in Hybrid of the Year, the MG HS, is also a very affordable company car, thanks to its combination of attractive pricing, low CO2 emissions and a long electric range.
And don’t think it’s only capable of covering big distances on electric power in a laboratory. No, when we tested it in the real world, we were able to cover 74 miles before the petrol engine kicked in – just one less than the official figure. That sort of range could be enough to cover your commute, the school run, or both, before the car's 1.5-litre petrol engine joins in.
The PHEV is also the quickest option in the MG HS range. With a combined power outputof 295bhp, it can officially hit 60mph in 6.1 seconds, which is quicker than the equivalent versions of rivals such as the BYD Seal U and Jaecoo 7.
Despite being cheap by plug-in hybrid SUV standards, the HS offers a smart, well equipped and spacious interior. And while many PHEVs don’t ride particularly well, due to their heavy batteries, the HS PHEV is actually more comfortable than its petrol counterpart.
The MG HS doesn't lose any boot space to its battery, so whether you opt for regular or plug-in hybrid power, it's a consistent 507 litres – that was enough to swallow six carry-on suitcases in our tests.
Only MG’s poor reliability record is a concern; it was the worst performing brand in the 2025 What Car? Reliability Survey.
“While the MG HS's boot is a decent size and was big enough to take my wake-boarding kit, families with a couple of children might wish it was even more spacious.” – Dan Jones, Senior Reviewer
Read our in-depth MG HS review
- Lower total monthly cost than PCP/HP
- No balloon payments
- Road tax included
Our pick 1.5 TSI eHybrid 204 Elegance Monthly BIK tax at 20% £54 Monthly BIK tax at 40% £108
Another car that’s seriously worth considering in PHEV form is the latest Volkswagen Passat.
Available only in estate form, it has a huge, 510-litre boot; by comparison, the Mercedes E300e Estate makes do with 460 litres and the smaller C300e Estate just 360 litres. That means your holiday suitcases or the result of an adventurous weekend at the garden centre isn't likely to be a problem.
Ride comfort and refinement are similarly impressive, with the latter particularly good if you go for mid-spec Elegance trim or above, because then you get laminated side windows to cut wind noise to an absolute minimum. That makes the Passat an incredibly comfortable and relaxing long-distance cruiser – handy if you're starting the day's meetings in Manchester and need to get to Mayfair for dinner.
There are actually two PHEV versions of the Passat available, both with impressive pure electric ranges of around 80 miles. We’d be happy with the least-powerful, but if you upgrade to the 272bhp version, you'll be getting the quickest Passat on the market, with this version able to complete the 0-62mph sprint in 7.1 seconds.
In terms of a warranty, Volkswagen's three-year, 60,000-mile offering is pretty par for the course. At least it performed very well when it was tested by the safety experts at Euro NCAP.
“I'd be tempted to add the Infotainment Package, because as well as including a head-up display, it swaps the VW Passat's standard 12.9in touchscreen for a spectacular 15in one.” – Darren Moss, Deputy Editor
Read our in-depth Volkswagen Passat review
Our pick Comfort Range Techno Monthly BIK tax at 20% £18 Monthly BIK tax at 40% £37
Chances are it will be the looks of the new Renault 5 (R5) that first draw you to this small electric car. But the great news is it has loads of substance to go with the style.
It handles in a secure, confidence-inspiring way and treats occupants to a mostly composed and comfy ride. Both the 120 Urban Range and the 150 Comfort Range models have a top speed of 93mph, but there are differences in their power and ranges. The former gets 119bhp from its electric motor and can officially take you up to 193 miles between charges – a figure which is likely to translateto around 150 miles of real-world use.
The 150 Comfort Range, meanwhile, gets a power boost to 148bhp along with a range of 252 miles, likely equating to 210 miles in real-world conditions.
What’s more, if you can step up from entry-level Evolution trim to mid-range Techno, the R5 gains a much more attractive interior with an excellent Google-based infotainment system that’s feature-packed and user-friendly.
Space in the back is a little tight, but even the tallest adults will be comfortable in the front, and the car’s dinky dimensions make it very nimble in town.
While Renault as a brand didn't fare too well in our latest Reliability Survey, coming in 20th position out of 30 manufacturers, you do at least get a three-year, 60,000-mile warranty on most components.
“The strong early demand for the Renault 5 has resulted in slow predicted depreciation and I'd expect resale values to remain strong for at least the first few years.” – Steve Huntingford, Editor
Read our in-depth Renault 5 review
- Lower total monthly cost than PCP/HP
- No balloon payments
- Road tax included
Our pick xDrive60 M Sport Monthly BIK tax at 20% £64 Monthly BIK tax at 40% £128
You’ll need to be a high flyer to have the iX on your company car list. But if it is there, this incredibly luxurious electric SUV will cost you less than £100 per month in BIK tax.
Part of what makes it so luxurious is the interior, which is made from high-quality materials that are beautifully assembled.
BMW has also taken a commendably eco-minded approach, though; the wood is sustainably sourced, there’s recycled (but plush-feeling) plastic, and – if you wish – you can have fancy microfibre fabrics instead of leather.
The iX's iDrive infotainment system is at the top of the class when it comes to ease of use, because as well as being controlled through touch or voice, you can also use a handy rotary controller, which makes inputting sat-nav desinations on the move very easy.
The car’s high roof, flat floor and broad interior combine to give every occupant loads of space. Indeed, you can sit three adults in the second row and they'll have little to complain about. And while rivals such as the Mercedes EQE SUV and Kia EV9 can fit more into their boots, the iX still had room for eight carry-on suitcases in our tests.
And few cars are as quiet or cosseting as the iX, with the ride being particularly good if you go for a model with air suspension.
"My xDrive60 long-termer hasn’t matched its 426-mile official range, but will happily cover a 300-mile motorway trip in cold weather and with the air conditioning on." – Dan Jones, Senior Reviewer
Read our in-depth BMW iX review
- Lower total monthly cost than PCP/HP
- No balloon payments
- Road tax included
Our pick E300e AMG Line Premium Monthly BIK tax at 20% £76 Monthly BIK tax at 40% £153
In generously equipped AMG Line Premium trim, the battery of the latest E300e plug-in hybrid can officially take you 70 miles on a full charge, so you’ll be able to complete many journeys without burning any petrol at all.
Okay, that’s only five miles up on the BMW 530e M Sport, but it’s enough to drop the E300e into the 6% BIK tax bracket, whereas the 530e is taxed at 9%.
Meanwhile, when the engine and electric motor are working together, performance is seriously lively. The 2.0-litre petrol engine provides decent punch on its own, and combined with the electric motor gives drivers 308bhp to play with – resulting in a 0-62mph sprint time of 6.4 seconds, which is about what you'd expect from a hot hatch.
Despite its AMG badging and sporty appearance, the E300e also gives gives you the sort of pillowy soft ride that Mercedes used to be famous for. And inside, you'll find an eye-catching interior with comfortable seats and plenty of storage. It's just a shame that the quality isn't quite up to the standards of some rivals.
"Some cars come with a branded sound system upgrade that still manages to sound disappointing, but I love the Burmester one in the E-Class. It’s a delightful way of getting tinnitus" Lawrence Cheung, New Cars Editor
Read our in-depth Mercedes E-Class review
Our pick 59kWh e-boost 230 V1 Monthly BIK tax at 20% £24 Monthly BIK tax at 40% £48
Under the skin, the Born is closely related to the Volkswagen ID 3. However it’s the former that gets the nod from us, because it’s smarter and plusher inside, as well as more fun to drive.
The Born feels keener to turn in to corners, plus it’s endowed with plenty of grip and neat body control. Every Born is rear-wheel drive, but how much power you get depends on which version you go for. The entry-level models get a 58kWh (usable capacity) battery and a motor which produces 188bhp, while the 79kWh battery option gets a heftier 228bhp motor. The flagship Born VZ model gets even more power, at 322bhp.
As for range, the cheapest models can cover 300 miles on a charge according to official figures, while the bigger battery increases this to 389 miles. That should be more than enough for the needs of most company car drivers.
Then there’s the sensible stuff; the interior is spacious enough to keep four six-footers happy, and we managed to squeeze six carry-on suitcases into the boot, whereas the ID 3’s could take only five.
Some rivals have better infotainment systems, and the Born’s touch-sensitive climate controls are horribly fiddly. But if you can put up with those things, it’s definitely worth considering.
"The Born manages to show its fun side without compromising everyday comfort too much, which is a combination I'm very keen on." – Dan Jones, Senior Reviewer
Read our in-depth Cupra Born review
- Lower total monthly cost than PCP/HP
- No balloon payments
- Road tax included
Our pick 330e M Sport Monthly BIK tax at 20% £86 Monthly BIK tax at 40% £172
The 3 Series has long been a very popular company car choice. And it still makes plenty of sense today if you go for the 330e plug-in hybrid version.
True, it can't go quite as far on electricity alone as a PHEV Mercedes C-Class – the official electric range is 62 miles, and you'll get less in real-world conditions – and the 330e will cost you more in BIK tax as a result. However, there are plenty of compensations.
In the words of What Car?'s road testers, the 3 Series is “brilliant fun to drive”, with the sort of agile handling which will have you taking the long way home every time, and a ride which has no trouble in taking the sting out of battered British roads. Plus, it has a comfortable and classy interior that’s fitted with the most user-friendly infotainment system around.
As a bonus, your tax bills will still be much lower than they would be with petrol and diesel alternatives.
When it comes to your warranty, every 3 Series comes with three years of coverage with no mileage cap, which is a step above most rivals.
“I found that in Electric mode, the plug-in hybrid BMW 330e's performance was reduced slightly but I could drive at motorway speeds on electric power alone.” – Dan Jones, Senior Reviewer
Read our in-depth BMW 3 Series review
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- Lower total monthly cost than PCP/HP
- No balloon payments
- Road tax included