Top Company Cars for 2025: A Comprehensive Guide
Explore our carefully curated list of the best company cars for 2025 that balance efficiency, tax benefits, and overall performance. Discover your ideal vehicle for work.
Top Company Cars for 2025: A Comprehensive Guide
Choosing the right company car can be an exciting yet daunting decision when beginning a new job. Despite rising taxes leading some employees to reconsider company vehicles, an optimal selection can still provide significant perks and savings.
With recent shifts in the company car landscape, traditional petrol and diesel models are becoming more costly to maintain, while electric vehicles (EVs) offer substantial tax savings. Currently, the most effective strategy to minimize your Benefit-in-Kind (BIK) tax is to select an electric vehicle, which is taxed at a low rate based on a percentage of its value. This could translate into considerable annual savings.
However, given the advancements in EV technology and charging infrastructure, they may not be ideal for everyone, particularly those who frequently travel long distances. As such, a combination of electric, plug-in hybrids, and traditional internal combustion engines remains essential. Our top 10 vehicles cater to varying preferences, from compact cars to spacious SUVs, offering practical options for every driver.
Our Top Picks for Company Cars
1. Volkswagen ID.7
Rating: 9/10
- Pros: Excellent efficiency, spacious interior, comfortable ride
- Cons: Steering feel could improve, touch-sensitive controls may frustrate
Tax Rate: 3%
Monthly BIK at 20%: £25.75
Monthly BIK at 40%: £51
The Volkswagen ID.7 tops our list due to its well-balanced performance, offering a range of up to 440 miles based on a variety of battery sizes. Ideal for longer commutes, the ID.7 combines practicality with comfort, making it a commendable choice for any company car driver.
2. BMW 5 Series
Rating: 9/10
- Pros: Smooth handling, luxurious interior, impressive electric range
- Cons: Larger size may compromise agility, complex infotainment system
Tax Rate: 9%
Monthly BIK at 20%: £89
Monthly BIK at 40%: £178
As a leader in the executive saloon segment, the BMW 5 Series offers comfort akin to a 7 Series. The 550e plug-in hybrid model especially stands out for its combination of performance and efficiency, suitable for business travelers.
3. Kia EV9
Rating: 9/10
- Pros: Spacious for family use, solid real-world range
- Cons: Can be noisy during acceleration, overall cabin noise
Tax Rate: 3%
Monthly BIK at 20%: £32.50
Monthly BIK at 40%: £65
The Kia EV9 excels as a family-friendly option, providing ample space alongside stylish design. Its generous battery capacity promises a real-world range of around 300 miles, ideal for families needing versatility.
4. Porsche Taycan
Rating: 9/10
- Pros: Exceptional performance, strong charging capabilities
- Cons: Limited second-row space, some higher versions may lack practicality
Tax Rate: 3%
Monthly BIK at 20%: £47
Monthly BIK at 40%: £94
A premium choice for those seeking performance alongside luxury, the Porsche Taycan manages to combine comfort with sports car-like capabilities, appealing to those who desire both style and speed.
5. Skoda Superb
Rating: 9/10
- Pros: Practical and spacious interior, reliable performance
- Cons: Some interior finishes can be improved
Tax Rate: 6%
Monthly BIK at 20%: £41.41
Monthly BIK at 40%: £81.16
The Skoda Superb iV, as the only plug-in hybrid in our top picks, offers significant everyday usability, boasting up to 73 miles of electric-only range, ensuring that many drivers could rely on electric power without the need for petrol.
6. Tesla Model 3
Rating: 8/10
- Pros: Great balance of performance and efficiency
- Cons: Interior minimalism can reduce functionality
Tax Rate: 3%
Monthly BIK at 20%: £20
Monthly BIK at 40%: £40
The Tesla Model 3 continues to be a favorite in the workplace market, offering an enticing combination of technology, comfort, and impressive range, making it a solid choice for tech-savvy drivers.
7. Renault 5
Rating: 9/10
- Pros: Engaging to drive, charming design
- Cons: Limited rear legroom, average cruising efficiency
Tax Rate: 3%
Monthly BIK at 20%: £11.50
Monthly BIK at 40%: £23
Combining style with affordability, the Renault 5 appeals to those seeking a compact city car. Thanks to its low upfront costs and low BIK rating, it’s an excellent choice for employees on a budget.
8. Tesla Model Y
Rating: 8/10
- Pros: Spacious with impressive efficiency
- Cons: Interior may have a polarizing design
Tax Rate: 3%
Monthly BIK at 20%: £22.50
Monthly BIK at 40%: £45
The Tesla Model Y remains one of the most practical electric SUVs, delivering comfort and compelling performance across its range.
9. Polestar 2
Rating: 8/10
- Pros: Balanced handling, stylish appearance
- Cons: Less passenger space compared to competitors
Tax Rate: 3%
Monthly BIK at 20%: £22.5
Monthly BIK at 40%: £45
Polestar’s 2 offers a great blend of design and performance, making it a popular choice for those looking for a premium electric vehicle.
10. Audi Q4 E-Tron
Rating: 8/10
- Pros: Comfortable for daily use, spacious cabin
- Cons: Quality doesn’t always match the price
Tax Rate: 3%
Monthly BIK at 20%: £23.25
Monthly BIK at 40%: £46.50
The Audi Q4 E-Tron remains a solid choice for company car drivers, radiating premium quality and comfort, fitting for both professional and personal use.
Tips for Choosing the Best Company Car
When selecting the right company car, consider these key factors:
Method of Propulsion
- Electric Vehicles (EVs): These are typically the most cost-effective choice with the lowest BIK rates.
- Internal Combustion Engine (ICE): Both petrol and diesel models are usually more costly in taxes.
- Plug-in Hybrids: These are ideal for transitioning toward electric as many models achieve high electric-only ranges.
Size Considerations
- Assess the vehicle size according to your job needs; larger cars like the Kia EV9 accommodate more passengers and cargo.
Driving Range
- For employees with long commutes, seeking a vehicle with a competitive driving range is crucial. EVs now frequently offer over 300 miles per charge, while plug-in hybrids can handle a good distance on electric power alone.
How We Tested and Selected the Cars
Our reviews focus on various criteria to ensure we provide reliable recommendations:
- Efficiency: Evaluated using real-world performance against official figures.
- Interior Comfort & Space: Includes measurements for headroom, legroom, and cabin noise.
- Performance: Examines acceleration and handling across different driving conditions.
- Technology: Assesses the usability of infotainment systems and safety features.
- Build Quality: Considers materials and assembly quality.
- Practicality: Focused on driver accessibility and storage capabilities.
- Ownership Costs: Analyzes total running costs, including tax implications.
FAQs
What is a Company Car?
A company car is a vehicle provided by an employer for either business or personal use, often seen as a valuable perk.
How is Benefit-in-Kind (BIK) Tax Calculated?
BIK is based on the car's list price, CO2 emissions, the driver's income tax bracket, and fuel type.
What are the Benefits of Company Cars?
Benefits include cost savings, convenience in management, and access to newer models with advanced features.