The company car market is changing fast. Diesel power no longer rules, and drivers are increasingly turning to electric cars and hybrids instead.
Some company cars naturally sell in bigger numbers than others, and here we're looking at the 10 best-selling company cars in the UK. Our list has a mix of small and family hatchbacks, alongside SUVs and even traditional executive saloons that were once the default choice among company car drivers.
If you want to keep your benefit-in-kind (BIK) tax bill to a minimum, low emissions are essential. So, whichever car in the top 10 catches your eye, it will pay to go for a model with a low CO2 figure. The P11d price (the car's value for tax purposes) is important too, so avoid range-topping models if you want to keep your tax bill affordable.
Next to each car, you'll see links to go and read our full in-depth reviews, and you can see our latest Target Price discounts by clicking through to our free New Car Buying service.
10. Volvo XC40
Recommended model T4 Recharge R-Design | CO2 48g/km | P11D price £39,095 | BIK tax rate 2021/22 @20% £1016.47 @40% £2032.94
A former What Car? Car of the Year and our favourite family SUV, it's no surprise to see that the Volvo XC40 is so popular with business drivers. It makes a superb family SUV, combining style, build quality, and practicality in one compelling package. The all-electric Recharge model will be the cheapest to tax, but high contract hire rates put it out of reach of most company car drivers. We'd go for one of the more affordable plug-in hybrids instead.
Volvo XC40 (cont.)
Stylish and high-quality interior
Comfortable ride on most versions
Comprehensive safety kit
Lacks the rear seat flexibility of some rivals
Fiddly infotainment system
Road noise on the motorway
9. Vauxhall Grandland X
Recommended model Hybrid 1.6 Turbo Business Edition Nav | CO2 31g/km | P11D price £32,355 | BIK tax rate 2021/22 @20% £840.71 @40% £1682.46
From the driver's seat, the Grandland X doesn't offer an awful lot of excitement, but it makes a lot of sense as a company car. The Vauxhall is keenly priced and well equipped, and the hybrid models offer low emissions and a surprising turn of speed. That's especially true of the more powerful four-wheel-drive version, although it's the two-wheel drive car that offers the lowest BIK bills, so that's the one we would choose.
Vauxhall Grandland X (cont.)
Generous standard equipment
Low CO2 emissions
Sluggish infotainment system
Tricky to drive smoothly
8. Volkswagen Tiguan
Recommended model 1.5 TSI 150 Life | CO2 151g/km | P11D price £27,385 | BIK tax rate 2021/22 @20% £1862.18 @40% £3724.36
With the Tiguan, Volkswagen has played to its traditional strengths. Its design may be quite conservative, but under the skin the VW does all the important things well. The interior is roomy and cleverly designed, with second-row seats that split, fold, slide and recline to create more space. Then there's the way the Tiguan drives, which is a lot more enjoyable than most of its rivals. Our favourite engine is the 148bhp petrol, which keeps the P11d value low and also keeps emissions sensible.
Volkswagen Tiguan (cont.)
Good to drive
Great seating flexibility
Roomier than many rivals
Higher trims get pricey
CO2 emissions could be lower
Fiddly air-con controls
7. Ford Fiesta
Recommended model 1.0 EcoBoost 125 mHEV ST-Line Edition 5dr | CO2 117g/km | P11D price £20,940 | BIK tax rate 2021/22 @20% £1130.76 @40% £2261.52
Small hatchbacks like the Ford Fiesta can make very cost-effective company cars. The combination of a low P11d value and low emissions is a win-win when it comes to BIK tax. The Fiesta's mild-hybrid petrol engines are particularly well suited to business drivers, with a healthy turn of speed and moderate CO2 emissions. Whichever engine you choose, the Fiesta is the best small car to drive.
Ford Fiesta (cont.)
Brilliant to drive
Punchy Ecoboost engines, especially the Hybrid versions
Good fuel economy and CO2 emissions
Some rivals are better value
Decent but not class-leading practicality
Important safety kit not standard
6. BMW 3 Series
Recommended model 330e Sport | CO2 31g/km | P11D price £41,375 | BIK tax rate 2021/22 @20% £910.25 @40% £1820.50
If you are in any doubt whether a plug-in hybrid makes sense as a company car, consider this: a BMW 330e costs its driver less in tax than a Ford Fiesta. It really is an absolute steal, so long as your employer is prepared to pay the monthly leasing cost. The 3 Series is a brilliant car, with superb handling, rapid performance, and a class-leading infotainment system. In fact, it's our reigning Executive Car of the Year.
BMW 3 Series (cont.)
Brilliant fun to drive
Class-leading infotainment system
Great range of engines
Ride is rather firm – particularly in M Sport versions
Not as well finished inside as an Audi A4
Adjustable lumbar support costs extra
5. Mercedes A-Class
Recommended model A250e AMG Line auto | CO2 24g/km | P11D price £32,395| BIK tax rate 2021/22 @20% £460.95 @40% £921.90
For a private buyer, the A-Class we'd recommend is the cheaper A200, with its conventional petrol engine. For company car drivers, though, the plug-in hybrid A250e is the one to have. Thanks to its excellent range when running on electricity alone, it sits in a lower tax band than most other plug-in hybrids. And like the rest of the A-Class range, it's beautiful inside, comfortable to travel in, and extremely safe.
Mercedes A-Class (cont.)
Strong safety rating
Feature-packed infotainment system
Good to drive and very comfortable
Not cheap to buy outright or on finance
Restrictive and pricey option packs
Poor reliability record
4. Ford Focus
Recommended model 1.0 EcoBoost 125 mHEV ST-Line Edition | CO2 117g/km | P11D price £24,240 | BIK tax rate 2021/22 @20% £1308.96 @40% £2617.92
When a petrol-engined model is cheaper and emits less C02 than the diesel equivalent, why would you choose anything else? That's the case with this Ford Focus, which has a lower CO2 figure than a Focus diesel. As with any Focus, this model is great to drive, and our favourite ST-Line Edition specification is very well equipped. It's a shame the boot isn't bigger and the interior better finished, but otherwise, the Focus is a great all-rounder.
Ford Focus (cont.)
Roomy rear seats
Not that cheap to buy
Skoda Octavia has a much bigger boot
3. Nissan Qashqai
Recommended model 1.3 DiG-T 140 Acenta Premium | CO2 143g/km | P11D price £23,280 | BIK tax rate 2021/22 @20% £1489.92 @40% £2979.84
Although an all-new model is just around the corner, the current-generation Nissan Qashqai family SUV remains a popular choice with company car drivers. The diesel engines have now been dropped from the range, so it's a straight choice between two different petrols. Both are impressively smooth, but for a low tax bill the smart money goes with the less powerful of the two. We'd also stick with Acenta Premium trim; it's well equipped and rides better than more expensive trims with larger alloy wheels.
Nissan Qashqai (cont.)
Quiet and smooth 1.3 petrol and 1.5 diesel engines
Surefooted handling and easy to drive
Top-end versions are very pricey
Ride comfort isn't great on 18in and 19in wheels
Reliability is a concern
2. Vauxhall Corsa
Recommended model 1.2 Turbo 100 SE Premium | CO2 117g/km | P11D price £17,840 | BIK tax rate 2021/22 @20% £963.36 @40% £1926.72
You can buy better small cars than the Vauxhall Corsa, but that doesn't seem to put off company car drivers or private buyers. And despite not being towards the top of its class, the Corsa is still a well equipped and spacious choice. The all-electric e-Corsa costs the least in tax, but will be more expensive to lease than one of the petrol models. We think the 99bhp 1.2 Turbo is the pick of the range if you're on a tight contract hire budget.
Vauxhall Corsa (cont.)
Laggy and confusing infotainment system
Below-par safety rating
Poor resale values
1. Volkswagen Golf
Recommended model 1.5 TSI 130 Life | CO2 123g/km | P11D price £23,725 | BIK tax rate 2021/22 @20% £1328.60 @40% £2657.20
It may no longer lead the family car class, but the latest Volkswagen Golf still does plenty to recommend itself. It offers a comfy ride and tidy handling and is available with a range of strong and peppy engines, of which this 1.5-litre petrol is our favourite. Team this engine with entry-level Life trim, and you'll have a company car with a low P11d value, modest emissions for a petrol car and all of the kit you're likely to need. It will also cost your employer less to lease than one of the pricier hybrid models.
Volkswagen Golf (cont.)
Exceedingly comfortable ride with adaptive suspension
Strong and frugal 1.5 TSI 150 engine
Frustratingly fiddly infotainment system is full of software bugs
Interior quality could be better
There are more spacious rivals