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The cheapest company cars you can get in the UK

It’s possible to run a company car for just £7.50 per month in BIK tax. We share the 15 cheapest company cars in the UK...

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by
Jack Mortimer
Updated15 September 2025

Dacia Spring front right driving

Just like you would with a private car, if you’re in the market for a new company car, you’ll want to keep a close eye on long-term costs. That means choosing a model that doesn’t attract too much benefit-in-kind (BIK) tax.

As our company car tax guide explains, the cars with the lowest BIK rates – and therefore the cheapest to run as a company car – have both the lowest list prices and emissions figures. As a result, the cheapest company cars to buy are all fully-electric and could cost you just a few pounds per month to run.

Even so, you’ll still need to consider other factors before you sign up – not least how far you’ll be able to travel before plugging into a charger. To help you make the right decision, we’ve compiled this list of the 15 cheapest company cars to run in the UK.

Each model is accompanied by the What Car? road testers’ rating out of five stars, the name of the cheapest version, the official range and the monthly BIK tax for a 20% and 40% tax payer in 2025/26 – not to mention a link to our full review so you can find out more about each car. 

And if you decide none of these options are the right fit for you, you can read about the cheapest petrol-powered company cars or check any car’s BIK rate in seconds using our company car tax calculator.

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Strengths

  • Cheaper than other electric cars
  • Range is enough for commuting
  • Respectable performance around

Weaknesses

  • Terrible safety rating
  • Cramped interior
  • Poor to drive

What Car? rating 2/5 | Cheapest model 45 Expression | Official range 140 miles | Monthly BIK tax at 20% £7.50| Monthly BIK tax at 40% £14.92

It wasn’t too long ago when the main thing an EV buyer needed was lots of money. Today, there are a cluster of electric cars available for less than £20,000, with the cheapest being the Dacia Spring. While its 25kWh (usable capacity) battery is positively microscopic compared to most EVs on the market today, its official range of 140 miles makes the Spring perfect for city driving.

It’s not all good news, though. The Spring’s diminutive dimensions mean rear head and leg room is limited. With just 44bhp to spare, the entry-level version is also particularly sluggish, whereas overly-light steering and body lean make cornering less enjoyable. There are better options for not much more BIK tax.

Read our in-depth Dacia Spring review

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Strengths

  • Well priced
  • Lots of standard kit
  • Comfortable ride

Weaknesses

  • Range suited to city drivers
  • Not particularly fast
  • Driving position could be better for taller drivers

What Car? rating 3/5 | Cheapest model T03 | Official range 165 miles | Monthly BIK tax at 20% £8 | Monthly BIK tax at 40% £16

The Leapmotor T03 is as tiny as its price, but as a cheap runaround for town and city driving, it’s worth a closer look. Compared to the Dacia Spring, it’s quicker off the mark and has well-balanced suspension that can soak up most lumps and bumps in the road. The interior is smart and feels well-built, and the lone trim level is surprisingly well-equipped.

On the minus side, the T03’s interior isn’t exactly spacious, particularly if you’re a rear passenger, and the boot is smaller than most rivals. While the suspension soaks up bumps about town, it tends to feel floaty at speeds.

Read our in-depth Leapmotor T03 review

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Strengths

  • Keenly priced
  • Bigger-battery versions have a respectable range
  • Well equipped

Weaknesses

  • Heavy predicted depreciation
  • Feeble range of entry-level Active version
  • No Euro NCAP safety rating at time of writing

What Car? rating 4/5 | Cheapest model 30kWh Active Auto 5dr | Official range 137 miles | Monthly BIK tax at 20% £9.33 | Monthly BIK tax at 40% £18.65

Like many of the cars on this list, the BYD Dolphin Surf is one of the cheapest electric cars in the UK. Even so, it comes with a considerable list of standard features and a more spacious interior than many rivals, including the Renault 5. There’s only room for two passengers in the back, though.

The mid-spec Boost is our favourite version, featuring a fair official range of 200 miles and an 87bhp motor for adequate performance – particularly for town and city driving. The Dolphin Surf is very manoeuvrable, although its light steering means it's not enjoyable to drive on fast country roads.

Read our in-depth BYD Dolphin Surf review

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Strengths

  • Very competitively priced
  • Funky, colourful interior
  • Good interior and boot space

Weaknesses

  • Renault 5 is better to drive
  • Hyundai Inster has more versatile seating
  • No Euro NCAP safety rating yet

What Car? rating 4/5 | Cheapest model Red (7kW charger) | Official range 199 miles | Monthly BIK tax at 20% £10.52 | Monthly BIK tax at 40% £21.04

While the Fiat Grande Panda is also available as a mild hybrid, the cheapest model to get as a company car is the fully-electric version. It’s the most recommendable choice so far on this list, receiving a four-star rating. It’s relatively roomy for such a small car and has a practical boot. All models are fitted with a 10.25in touchscreen, manual air conditioning and rear parking sensors as standard.

The 43.8kWh (usable capacity) battery also provides a practical official range of 199 miles. Even so, the Grande Panda isn’t the most enjoyable EV to drive, with spongy steering and a rather harsh ride from the firm suspension. Even so, the 111bhp electric motor provides enough punch to reach motorway speeds with ease.

Read our in-depth Fiat Grande Panda Electric review

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Strengths

  • Roomier inside than rivals
  • Plus version is keenly priced
  • Respectable range

Weaknesses

  • Disappointing efficiency
  • So-so performance
  • Not great to drive

What Car? rating 3/5 | Cheapest model Plus (7.4kW charger) | Official range 199 miles | Monthly BIK tax at 20% £11.05 | Monthly BIK tax at 40% £22.10

Just like the petrol-powered Citroën C3, the all-electric ë-C3 offers a decent-sized small car for a very competitive price. Its official range of 199 miles means it’s best suited as a local runaround, but even on short journeys, you’ll enjoy the ë-C3’s good low-speed acceleration and very little road noise. 

While some alternatives, like the BYD Dolphin Surf and Renault 5, have a plusher interior, the ë-C3 is still attractive inside and offers just enough room for five adults. The 310-litre boot is also larger than most rivals, making the ë-C3 a good pick if you regularly carry sizable loads.

Read our in-depth Citroën ë-C3 review

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Strengths

  • Surprisingly spacious for two
  • Low purchase and running costs
  • Zippy city acceleration

Weaknesses

  • Limited range
  • 28mph top speed
  • Safety concerns

What Car? rating 2/5 | Cheapest model Ami | Official range 46 miles | Monthly BIK tax at 20% £11.50 | Monthly BIK tax at 40% £22.92

The Citroën Ami isn’t actually a car. You see, it’s legally classified as a quadricycle, featuring a tiny 8bhp motor and a top speed of just 28mph. As such, the Ami is out of its depth in anything but a city environment. There’s also very little space inside, with only two seats and a miniscule boot. 

Even so, if all you need is a (very) small car for short trips and commutes, it could be ideal. Its official range of 46 miles is enough to cross a large city. The low weight also helps you pull away from junctions with ease, while the 7.2m turning circle makes the Ami extremely manoeuvrable. And if you want to be a slightly slow delivery driver, there’s the van-like Citroën Ami Cargo.

Read our in-depth Citroen Ami review

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Strengths

  • Low price
  • Comfy and easy to drive
  • Good interior and boot space

Weaknesses

  • Underwhelming range
  • Sub-par performance and handling
  • No seven-seat option (as there is with the C3 Aircross)

What Car? rating 4/5 Cheapest model Standard Range Plus (7.4kW charger) | Official range 188 miles | Monthly BIK tax at 20% £11.55 | Monthly BIK tax at 40% £23.10

As you might expect, the Citroën ë-C3 Aircross is the chunkier SUV version of the standard Citroën ë-C3, meaning it has a higher stance. The ë-C3 Aircross’ 460-litre boot is also a substantial upgrade over the standard ë-C3 and larger than most rivals, including the Fiat Grande Panda Electric and Jeep Avenger Electric.

Currently, the ë-C3 Aircross is only available with a 43.8kWh battery, giving it an official range of 188 miles. A 111bhp motor gives it rather sluggish acceleration by EV standards. Nevertheless, at motorway speeds, the ë-C3 Aircross manages to stay quiet and composed. There is some body lean around tight bends, though.

Read our in-depth Citroën ë-C3 Aircross review

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Strengths

  • Grown-up driving manners
  • Great infotainment system
  • Tempting pricing

Weaknesses

  • Rear leg room is tight
  • Small discounts
  • Citroën ë-C3 and Fiat Grande Panda Electric are even cheaper

What Car? rating 5/5 | Cheapest model Urban Range Evolution | Official range 192 miles | Monthly BIK tax at 20% £11.50 | Monthly BIK tax at 40% £23

Our Car of the Year is the first five-star rated choice on this list, and as a company vehicle, it’s available at a bargain rate thanks to the fact that – like all the cheapest options for BIK tax – it’s an electric car. Available with two battery options, the larger 52kWh (usable capacity) version can officially cover 253 miles without charging – good by small electric car standards.

The R5 is also great fun to drive, with plenty of grip around corners, well-weighted steering and decent acceleration. Even so, the R5 isn’t such a good option if you want your company car to be spacious. Rear leg room is tight and, while the boot is a reasonable size, it has a high lip that can make loading heavy items difficult.

Read our in-depth Renault 5 review

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Strengths

  • Surprising amount of interior space
  • Competitive electric range
  • Lots of standard kit

Weaknesses

  • Renault 5 is better to drive
  • Slightly sluggish at higher speeds
  • Limited to four seats

What Car? rating 5/5 | Cheapest model Standard Range 01 | Official range 203 miles | Monthly BIK tax at 20% £11.75 | Monthly BIK tax at 40% £23.51

Like the Renault 5, the Hyundai Inster has a five-star rating, thanks in part to its sophisticated driving style. About town, it’s manoeuvrable enough to fit into the smallest gaps and parking spaces, whereas relatively sharp handling and a supple ride make it just as enjoyable at speed. An official range of up to 229 miles also helps to make the Inster capable of occasional lengthy trips.

However, inside is where the Inster really shines. While the design uses a lot of cheap-feeling materials and only has four seats, there’s plenty of room front and back. Most models also have individually-sliding and reclining rear seats to boost comfort, too.

Read our in-depth Hyundai Inster review

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Strengths

  • Low buying and running costs
  • Spacious and available with up to seven seats
  • Easy-to-use interior controls

Weaknesses

  • Rivals ride and handle better
  • Some wind and road noise, plus the engines can be quite rough
  • Interior materials are quite basic

What Car? rating 3/5 | Cheapest model 44kWh Design | Official range 186 miles | Monthly BIK tax at 20% £12 | Monthly BIK tax at 40% £24

The new Vauxhall Frontera is a very different car to the 90s original, not least because it’s available as an EV. From a BIK tax point of view, the Frontera Electric offers a lot of car for your money. There’s plenty of head and leg room for all occupants, a 460-litre boot and a lengthy list of standard features.

Like the closely-related Citroën ë-C3 Aircross, the Frontera Electric uses a 44kWh battery for a reasonable, if not exactly ground-breaking, official range of 186 miles. Compared to the hybrid version, the Frontera Electric’s additional weight helps to improve ride quality and body control. The overly-light steering makes taking corners at speed less enjoyable, though.

Read our in-depth Vauxhall Frontera Electric review

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Strengths

  • Great level of safety
  • Good rear seat space
  • Long warranty

Weaknesses

  • Tiny boot
  • Poor infotainment system
  • Many rivals ride and handle better

What Car? rating 2/5 | Cheapest model Pure | Official range 193 miles | Monthly BIK tax at 20% £12.50 | Monthly BIK tax at 40% £25

The GWM Ora 03 certainly looks distinctive and particularly affordable to company car buyers. However, with a rating of just two stars, there are many better options for the money. You see, poor body control and light steering mean the Ora 03 isn’t particularly agile around tight bends, whereas the stiff suspension makes it less refined than other electric hatchbacks such as the MG4. The Ora 03’s boot is also small compared with rivals and there’s no under-bonnet storage.

On the plus side, the Ora 03 offers a very fair amount of head and leg room for rear occupants and a wide range of storage cubbies. It also has a five-star Euro NCAP safety rating, thanks to the many driver assistance features it’s equipped with.

Read our in-depth GWM Ora 3 review

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Strengths

  • Fun to drive around town
  • Small battery version undercuts some rivals
  • Reasonable range for town driving

Weaknesses

  • Tiny rear seats
  • Noisy at motorway speeds
  • Rivals can go further on a charge

What Car? rating 3/5 | Cheapest model 24kWh Auto | Official electric range 118 miles | Monthly BIK tax at 20% £12.52 | Monthly BIK tax at 40% £25.04

The Fiat 500 Electric is attractive and easy to drive but, as a company car, isn’t the most practical model. Given its small size, rear passengers have very limited leg room and – as it’s only available with three doors – will need to clamber over the front seats to get in. Its 185-litre boot is also tiny, even by small electric car standards.

Even so, if you’re planning to only use your company car around town, the 500e might just fit the bill. Two batteries are available, with the more expensive 37.3kWh (usable capacity) pack giving the 500e an official range of 199 miles. Acceleration, while not earth-shattering, is enough to keep up with traffic, whereas the tight turning circle makes the 500e a very manoeuvrable car.

Read our in-depth Fiat 500e review

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Strengths

  • Nippy acceleration
  • Grippy handling
  • Relatively slow predicted depreciation

Weaknesses

  • Range of Cooper E variant isn't great
  • Not very practical
  • So-so charging speeds

What Car? rating 4/5 | Cheapest model E 40.7kWh Classic Auto 3dr | Official range 186 miles | Monthly BIK tax at 20% £13.45 | Monthly BIK tax at 40% £26.91

Few company cars are bought for their stylish appearance or fun driving style; however, if these are key factors for you, it’s worth taking a look at a Mini Cooper Electric. Two power options are available, with even the entry-level 181bhp model offering surprisingly sharp acceleration and agile handling. The 36.6kWh (usable capacity) battery is officially only good for 186 miles, though.

The Cooper Electric’s interior is certainly attractive and offers plenty of room for passengers in the front. However, since it’s a three-door car, rear passengers will need to clamber over the back seats and, once seated, won’t have much leg room. The boot is also rather small, although still larger than that of the Fiat 500e.

Read our in-depth Mini Cooper Electric review

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Strengths

  • Good to drive
  • Tempting pricing
  • Practical boot

Weaknesses

  • Rear seats are tight for adults
  • Some rivals have longer warranties

What Car? rating 4/5 | Cheapest model Evolution 52kWh Comfort Range | Official range 250 miles | Monthly BIK tax at 20% £13.50 | Monthly BIK tax at 40% £27.00

Sharing a lot in common with the smaller Renault 5 electric hatchback, the Renault 4 is just as enjoyable to drive but offers more interior space, making it a worthy choice for company car buyers on a budget. All models use a 52kWh (usable capacity) battery, which results in an official range of 250 miles, and a 148bhp motor. While a tight turning circle and slick acceleration make the R4 a decent car around town, it’s refined at motorway speeds.

The R4’s interior is very similar to that of the R5, which is no bad thing. However, the boot is considerably larger and features an underfloor compartment for further storage. There’s also more leg room for rear passengers, although the R4 is still not as spacious as the Kia EV3.

Read our in-depth Renault 4 review

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Strengths

  • Incredibly well priced
  • Competitive range between charges
  • Long warranty

Weaknesses

  • Bad reliability record
  • Slightly unsettled ride
  • Infotainment system is fiddly

What Car? rating 4/5 | Cheapest model SE | Official range 218 miles | Monthly BIK tax at 20% £13.62 | Monthly BIK tax at 40% £27.25

Despite being older than many of its rivals, the MG4 remains excellent value for money. There’s a considerable range of power and battery options to choose from, including a 74.4kWh (usable capacity) Extended Range version that can officially cover 323 miles. The MG4 also offers a comfortable ride and steering that’s light yet precise.

The MG4’s interior feels quite cheap but is packed with standard equipment. All models use a 10.25in touchscreen with Apple CarPlay and Android Auto, which is no bad thing because MG’s own infotainment set-up is slightly too complex. There’s plenty of head and leg room all round, and the 363-litre boot is reasonable – if not class-leading. 

Read our in-depth MG4 review


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