What Makes a Great Company Car in 2024?
If you’re in the market for a company car, you’re probably juggling more than just picking your favorite color or badge. The landscape has shifted—taxation changes, the rise of electric vehicles, and evolving work habits all play a role. So, what should you really look for in a company car today?
First off, it’s about more than just getting from A to B. A smart company car choice can save you a surprising amount of money, especially when you factor in Benefit-in-Kind (BIK) tax. But with recent tax hikes on petrol and diesel models, and even electric cars getting pricier, the decision isn’t as straightforward as it used to be.
How Can You Minimize Company Car Tax?
Let’s get real: nobody wants to pay more tax than they have to. That’s where BIK comes in. In the UK, BIK is calculated based on the car’s value and its CO2 emissions. The lower the emissions, the less you pay.
Right now, electric vehicles (EVs) are the clear winners. Business users are taxed on just 3% of an EV’s value—compare that to some petrol or diesel cars, and you could be saving thousands each year. According to HMRC data, the number of EVs registered as company cars has doubled since 2021, driven largely by these tax breaks.
But there’s a catch. Not everyone’s driving patterns fit neatly into the EV box. If you’re clocking up motorway miles or working in areas with patchy charging infrastructure, a traditional hybrid or even a fuel-efficient petrol might still make more sense.
Are Electric Cars Right for Every Company Driver?
Electric cars have come a long way. Range anxiety isn’t what it used to be, and the UK now boasts over 50,000 public charging points, according to Zap-Map’s latest figures. Still, if your job means long stints behind the wheel or you’re often in rural areas, charging can be a real concern.
That’s why many companies are hedging their bets with plug-in hybrids (PHEVs). These offer the best of both worlds: electric-only driving for short commutes and a petrol or diesel engine for longer journeys. It’s a practical compromise, especially if you’re not ready to go fully electric.
What Are the Top Company Cars to Consider This Year?
With so many options, narrowing down the list can feel overwhelming. To help, here’s a look at some standout choices across different categories—each balancing low BIK, practicality, and genuine driver appeal.
Volkswagen ID 7: The All-Rounder
Topping the list is the Volkswagen ID 7. Why? It nails the sweet spot between tax efficiency, comfort, and tech. With a spacious interior, impressive range (up to 385 miles WLTP), and a user-friendly infotainment system, it feels built for business. Plus, its low emissions mean you’ll enjoy that 3% BIK rate.
Tesla Model 3: The Tech-Lover’s Dream
If you’re after cutting-edge tech and a badge that turns heads, the Tesla Model 3 is hard to ignore. It’s quick, packed with features, and benefits from Tesla’s extensive Supercharger network. For many, the seamless connectivity and autopilot features are a game-changer.
BMW 330e: The Hybrid Hero
Not ready to commit to full electric? The BMW 330e plug-in hybrid offers a sporty drive with enough electric-only range for most daily commutes. When you need to go further, the petrol engine steps in seamlessly. It’s a favorite among those who want performance without the EV learning curve.
Kia Niro EV: The Practical Choice
For those who value practicality, the Kia Niro EV stands out. It’s affordable, reliable, and comes loaded with safety features. The boot space is generous, making it a solid pick for sales reps or anyone hauling equipment.
Toyota Corolla Hybrid: The Reliable All-Rounder
Toyota’s reputation for reliability is well-earned, and the Corolla Hybrid is no exception. It’s efficient, comfortable, and boasts one of the lowest running costs in its class. For drivers who want fuss-free motoring, it’s a safe bet.
How Do You Choose the Best Fit for Your Needs?
It’s tempting to go straight for the flashiest model, but the best company car is the one that fits your lifestyle. Start by asking yourself a few key questions:
– How many miles do you drive each week?
– Do you have access to charging at home or work?
– Is boot space or passenger comfort a priority?
– What’s your monthly budget for tax and fuel?
Talk to your employer or fleet manager, too—they often have insights or deals you might not know about. And don’t forget to factor in future changes: BIK rates for EVs are set to rise gradually after 2025, so it pays to plan ahead.
What’s the Bottom Line for Company Car Drivers in 2024?
Choosing a company car isn’t just about picking a set of wheels—it’s about making a smart financial and lifestyle decision. With tax rules in flux and technology evolving fast, it pays to stay informed.
The Volkswagen ID 7 leads the pack for its blend of efficiency, comfort, and value, but there’s no one-size-fits-all answer. Whether you go electric, hybrid, or stick with a traditional engine, the key is to weigh up your real-world needs and make the most of the perks on offer.
Take your time, do your homework, and don’t be afraid to ask questions. The right company car can make your work life smoother—and your wallet a little happier.