Every car class's cheapest model for BIK tax – from small cars to SUVs

From hatchbacks to SUVs, there are more company car options than ever – but what will cost the least in BIK tax? These are the cheapest fleet cars in every class.....

Grey Range Rover Evoque right driving

New company car day is undoubtedly one of the happier ones in anyone’s week. But choosing the right one takes care and research.

That’s because there’s a vast array of models, trims and options out there, not to mention the incentives being offered at any given moment. So, if you’re tempted to keep things simple by going for the cheapest fleet wheels, we can guide you to the perfect car in each class.

Here, we list the cheapest company cars you can opt for, broken down into the engine (or electric motor) you're looking for, to make each car easy to find.

Read more fleet and company car advice

We’ve covered the four main categories of car that fleet users choose from – small cars, family cars, executive cars and SUVs – and offered options for fuel types within most of those groups. We’ve also listed each car’s price, CO2 figure and monthly benefit-in-kind (BIK) tax figure for 20% and 40% taxpayers.

And just so you know you’re getting a good option – and not just a cheap one – we’ve selected only cars that have scored at least three stars in our new car reviews. You can follow the link to each model's full review to find out more about it. 

Cheapest small electric car for BIK tax

Electric Fiat 500

Electric Fiat 500 rear cornering

What Car? rating 4/5
Cheapest model 24kWh Auto
P11D price £28,140
Monthly BIK tax at 20% £9.41
Monthly BIK tax at 40% £18.75

Yes, there are cheaper company cars (the Citroën Ami costs less for BIK tax) but not ones you’ll be happy to while away every day in. And besides, a 20% taxpayer will be shelling out less than a tenner a month in BIK tax for the electric 500. That’s why we reckon the four-star Fiat 500 is worth spending a few more pennies on each month.

Electric Fiat 500 review

Cheapest electric family car for BIK tax


Orange MG4 EV right static

What Car? rating 5/5
Cheapest model 125kW SE 51kWh
P11D price £26,940
Monthly BIK tax at 20% £9
Monthly BIK tax at 40% £18

The sheer price of electric cars is a sticking point for many, but that’s where the MG4 scores well, because it offers family motoring for not a huge amount more than the price of the electric Fiat 500. Better still, it's a five-star car and category winner at the 2024 What Car? Awards.

MG4 EV review

Cheapest electric executive car for BIK tax

Tesla Model 3

Red Tesla Model 3 rear left driving

What Car? rating 5/5
Cheapest model RWD
P11D price £39,935
Monthly BIK tax at 20% £13.33
Monthly BIK tax at 40% £26.67

The Model 3 is to the company car market what the Apple iPhone was to touchscreens back in 2007. It didn’t so much move the goal posts as dig them up and run away with them – to the extent that other car makers are only now just starting to catch up. Plus, it undercuts the prices of its two main rivals, the BMW i4 and Hyundai Ioniq 6.

Tesla Model 3 review

Cheapest electric SUV for BIK tax

Smart #1

Smart #1 front driving

What Car? rating 5/5
Cheapest model Premium
P11D price £38,895
Monthly BIK tax at 20% £13
Monthly BIK tax at 40% £25.92 

Smart has certainly come a long way since its days of offering plastic panels, two seats and funky paint jobs. The #1 is great to drive, has a great interior and can officially manage up to 273 miles on a full charge. No wonder it was named best small electric SUV at the 2024 What Car? Awards.

Smart #1 review

Cheapest PHEV small SUV for BIK tax

Range Rover Evoque

Grey Range Rover Evoque front cornering

What Car? rating 5/5
Cheapest model P300e S
P11D price £48,945
Monthly BIK tax at 20% £97.92
Monthly BIK tax at 40% £195.75 

Talk about having your cake and eating it. If you choose the Evoque P300e plug-in hybrid (PHEV), you’ll be getting a stylish and well-equipped SUV that manages to keep BIK tax bills down, while driving with a verve that few SUVs can match. Better still, low depreciation helps to keep down leasing rates.

Range Rover Evoque review

Cheapest PHEV family car for BIK tax

Audi A3 Sportback

Audi A3 Sportback right driving

What Car? rating 5/5
Cheapest model 40 TFSIe Sport
P11D price £36,345
Monthly BIK tax at 20% £48.50
Monthly BIK tax at 40% £96.92 

It’s not often you get more for less in this world, but that’s the case with the plug-in hybrid A3 Sportback. That’s because it’s cheaper on PCP finance than PHEV versions of the Peugeot 3008 and Mercedes A-Class and its BIK tax rates are super low. Better still, the A3 is one of the best-handling PHEVs our there.

Audi A3 Sportback review 

Cheapest PHEV executive car for BIK tax

Mercedes C-Class Saloon

Mercedes C300e rear left static charging

What Car? rating 4/5
Cheapest model C300e AMG Line Premium
P11D price £51,970
Monthly BIK tax at 20% £69.33
Monthly BIK tax at 40% £138.58

Yes, the world is dominated by SUVs, but there’s still a place for traditional saloons, which are usually better to drive and more efficient. The C300e plug-in hybrid is a prime example. It looks every inch the luxury car, and can officially travel up to 71 miles on electricity alone – further than the BMW 3 Series equivalent, the 330e. 

Mercedes C-Class review

Cheapest PHEV family SUV for BIK tax

Mercedes GLC

Blue Mercedes GLC 300e rear right driving

What Car? rating 4/5
Cheapest model GLC 300e AMG Line
P11D price £63,155
Monthly BIK tax at 20% £52.67
Monthly BIK tax at 40% £105.25

People love SUVs, to the extent that the GLC is the biggest selling Mercedes. And this GLC 300e version is just as popular with company car drivers because its plug-in hybrid tech keeps costs down. It can be recharged in around five hours from a home wallbox and can officially go further on electricity alone than a PHEV Volvo XC60.

Mercedes GLC review

Cheapest petrol small car for BIK tax

Renault Clio

Blue Renault Clio front right driving

What Car? rating 5/5
Cheapest model 1.0 TCe 90 Techno
P11D price £18,930
Monthly BIK tax at 20% £88.33
Monthly BIK tax at 40% £176.67

Forget ageing celebs with overly tight complexions, the Clio is living proof that a facelift can work wonders. It was tweaked in 2023, and instantly became the class leader, going on to win the best small car title at the 2024 What Car? Awards. The fact that it’s cheaper than most rivals is merely the icing on the cake.

Renault Clio review

Cheapest petrol family car for BIK tax

Toyota Corolla

Toyota Corolla right static

What Car? rating 5/5
Cheapest model 1.8 Hybrid Icon
P11D price £30,285
Monthly BIK tax at 20% £126.17
Monthly BIK tax at 40% £252.42

Numerous fleet car users have been turned off diesel over the past few years, yet they’re not quite ready for an electric. So, what’s in the middle? A petrol hybrid such as the Corolla, which can officially manage 64.2mpg and emits 100g/km of carbon dioxide, which equates to a monthly BIK tax bill of £126 for a 20% taxpayer.

Toyota Corolla review

Cheapest petrol executive car for BIK tax

Lexus ES

Lexus ES front left driving

What Car? rating 3/5
Cheapest model 300h 2.5 4dr CVT Premium Edition
P11D price £39,745
Monthly BIK tax at 20% £192.08
Monthly BIK tax at 40% £384.17

The hybrid ES is a decent choice for those fleet drivers who want to minimise their running costs, but who have no way of plugging in a car. It has a 2.5-litre four-cylinder petrol engine backed up by not one but two electric motors – and the result is a low BIK rate plus an official average fuel economy figure of 55.4mpg.

Lexus ES review

Cheapest petrol family SUV for BIK tax

Nissan Qashqai

Blue Nissan Qashqai rear driving

What Car? rating 4/5
Cheapest model 1.3 DiG-T MH Acenta Premium
P11D price £29,420
Monthly BIK tax at 20% £161.83
Monthly BIK tax at 40% £323.67

The coat tails of the Qashqai must be looking pretty frayed by now, because the car was a trend-setter back in 2006, and other manufacturers have been grasping at it ever since to catch up. The mild-hybrid system helps it achieve an average of 44.8mpg, while emissions of 142g/km keep monthly BIK tax bills down.

Nissan Qashqai review

Cheapest diesel family car for BIK tax

Peugeot 308

Green Peugeot 308 front right driving

What Car? rating 3/5
Cheapest model 1.5 BlueHDi Active
P11D price £29,365
Monthly BIK tax at 20% £141.92
Monthly BIK tax at 40% £283.83

Diesel, for so long the fleet car fuel of choice, is now something of a pariah, but the 308 shows why it shouldn’t be entirely exterminated. It will do an official average of almost 60mpg, so it will travel a very long way on a single tankful of diesel – although whether that's enough to take the sting out of the relatively high BIK cost is up to you.

Peugeot 308 review

Cheapest diesel executive car for BIK tax

Jaguar XF

Jaguar XF front driving

What Car? rating 3/5
Cheapest model 2.0 D200 R-Dynamic S
P11D price £35,395
Monthly BIK tax at 20% £182.83
Monthly BIK tax at 40% £365.75

The second-generation XF stands out with its classy interior, Pivi Pro infotainment system and mild-hybrid diesel powertrain. An average economy figure of 56.9mpg is worth shouting about, while CO2 emissions contribute to monthly BIK bills of just under £366 for a 40% taxpayer – punchy but less than the Jag’s rivals can manage.

Jaguar XF review

Read more: Company car tax rules explained

Read more: How to pay less company car tax

Read more fleet and company car advice

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