Currently reading: The best company cars - driven, ranked and rated

There's a huge list to choose from, but here are our favourite company cars

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Choosing a company car is an exciting prospect when starting a new job, and while increased taxation has reduced the number of employees seeking a vehicle as part of their remuneration package, selecting wisely can still provide an excellent perk and save you money.

Recent times have brought significant changes to the company car system. Certain cars - including petrol and diesel models - are now expensive to tax, while even electric cars have seen significant cost rises in the past few years. 

Even so, the most effective way to minimise Benefit-in-Kind (BIK), the tax applied to company cars, is to opt for an EV. Business users are taxed on 3% of the car's value, potentially saving them thousands of pounds in annual tax. 

However, despite significant advancements in EVs and their charging infrastructure, they may not be suitable for all drivers, particularly those who cover long distances on tight schedules.

For many employees, traditional internal combustion-engined (ICE) and hybrid models remain more practical. That's why our top 10 list below focuses on both EVs and plug-in hybrid options.

These choices span various categories, from small cars to SUVs, aiming to offer something for everyone. Each vehicle combines low BIK bills with sufficient driver appeal to maintain interest.

Our top pick for the best company car is the Volkswagen ID 7. Want to know why? Read on…

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  • Design8
  • Interior9
  • Performance8
  • Ride & Handling9
  • Costs9

Best for EV drivers

BiK rate 3%

The ID 7 has a fine driving position and an intuitively responsive accelerator pedal. The combination provides a strong foundation for any car that aims to handle well.

Monthly BiK tax at 20% £25.75 

Monthly BiK tax at 40% £51

We believe the Volkswagen ID 7 is the best company car in 2025, and that's not just because of its ultra-low 3% benefit-in-kind banding. 

The ID 7 is a brilliant all-rounder offering a pleasant, spacious interior, excellent ride quality and surprisingly capable handling, making this EV a great choice for longer commutes. 

Battery sizes range from 77kWh to 86kWh, which means a range as high as 440 miles. The larger 86kWh battery also offers charging speeds of up to 200kW, so those quick homeward-bound top-ups won't take forever. Even the smaller-battery cars can charge at up to speeds of 175kW. 

There’s also a choice of saloon and Tourer (estate) bodystyles, both with class-leading practicality. The standard saloon boasts a 532-litre boot, while the Tourer offers an even more cavernous 605 litres.

Find Volkswagen ID 7 deals with Autocar

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  • Design8
  • Interior7
  • Performance9
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  • Costs7

Best for Refinement

BiK rate 9%

A recorded 0-60mph of 4.4sec makes the 550e 0.2sec quicker than the V10-hearted E60-gen M5

Monthly BiK tax at 20% £89

Monthly BiK at 40% £178

Now in its eighth generation, the 5 Series continues to lead the executive saloon pack - although its margin of superiority is smaller than it has ever been.

Bigger and heavier than before, the three-box BMW has lost some of its predecessor’s traditional dynamic sparkle, but the trade-off is almost 7 Series-levels of comfort and refinement.

The vast, beautifully finished interior will keep clients happy, although the infuriatingly overwrought infotainment system will test the patience of many drivers.

There are plenty of powertrains to choose from, but the 550e plug-in hybrid’s blend of decent urge, 9% BiK and more than 60 miles of pure-electric running covers all the company car bases.

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  • Ride & Handling8
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Best for Space

BiK rate 3%

Aside from the additional front-axle drive motor, GT-Line adds 21in alloys, adaptive headlights and a front-seat upgrade.

Monthly BiK tax at 20% £32.5

Monthly BiK at 40% £65

The Kia EV9 is the largest model on our list and a key pick for drivers with larger families thanks to its practicality and versatility. 

Able to seat up to seven, the EV9 is as spacious as EVs come, but it also has the style to match the substance. 

It boasts a versatile cabin set-up with some premium materials, plus a boot that measures 333 litres with all seven seats in place, or 828 litres with the third row folded flat. There’s even a front boot, measuring 90 litres in front-wheel-drive models or 52 litres in AWD variants. 

Kia says the EV9’s huge, 99.8kWh battery is capable of 349 miles of range, although our tests showed an average of 3.0mpkWh, which equates to around 300 miles. That’s not terrible for a car of the EV9’s weight, and you can always make use of the 210kW charging speed.

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  • Design9
  • Interior7
  • Performance10
  • Ride & Handling9
  • Costs8

Best for Performance

BiK rate 3%

The most refined of the Taycans is the Cross Turismo, with softer springing and less of a performance-focused remit

Monthly BiK tax at 20% £47

Monthly BiK at 40% £94

Porsche’s luxury saloon is a great pick for company car drivers who are after a daily cruiser with the potential to deliver sports car-like performance levels. It also comes in estate and saloon bodystyles. 

Easily the most premium option on our list, the Taycan comes with swathes of technology as standard, including comfortable air suspension, a heatpump, wireless phone charging and heated front seats. 

Driving range is spec-dependent. The entry-level Taycan offers the most range at 421 miles, while the staggeringly powerful Taycan Turbo GT has the lowest, at 344 miles, although that is offset by its 1026bhp powertrain and 2.2sec sprint from 0-62mph. 

No Taycan is slow, though. Even the most basic model produces 429bhp and will hit 0-62mph in 4.8sec. 

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  • Design9
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  • Performance8
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  • Costs9

Best for Estate fans

BiK rate 6%

Consider the PHEV. All versions are rated for at least 73 EV miles, landing them in the 6% benefit-in-kind tax band.

Monthly BiK tax at 20% £41.41

Monthly BiK at 40% £81.16

As the only plug-in hybrid on our list, the SKoda Superb iV commands a slightly higher BiK banding of 6% with this powertrain. However, we think it’s still well worth considering, and its monthly price matches some of the more expensive electric options available today. 

The Superb scored a perfect five stars in our road test, owing to its highly practical and spacious interior, its excellent everyday driveability and its affordable running costs.

Our recommended plug-in hybrid spec offers some impressive on-paper figures. It offers 73 miles of electric-only range, which means some drivers might never be required to consume any fuel at all – assuming they keep the car charged up. 

The Superb is a car that supplies drivers with the essentials, and it does the vast majority of them brilliantly.

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  • Design8
  • Interior7
  • Performance9
  • Ride & Handling8
  • Costs8

Best for Handling

BiK rate 3%

The RWD can rapid-charge at up to 170kW but has no recommended limit on battery capacity. The Long Range will hit 250kW.

Monthly BiK tax at 20% £20

Monthly BiK at 40% £40

The Tesla Model 3 is an incredibly popular company car, and few rivals can match its blend of technology, range and driving dynamics. 

Improvements in 2024 brought an ever longer-legged range, with entry-level cars offering 344 miles. Long Range cars, meanwhile, up the stakes to 436 miles, which is highly competitive with rivals. 

The Model 3 is practical, with a combined luggage capacity - that’s the main boot and a ‘frunk’ - totalling 682 litres. There’s also a reasonable amount of space in the back for passengers, too, although it can’t quite match the larger Volkswagen ID 7. 

Performance is another string on the Model 3’s bow. Basic rear-wheel-drive cars hit 0-62mph in 5.8sec, while all-wheel-drive cars drop that to 4.2sec. If you want truly ludicrous speed, you’ll want to look at the Model 3 Performance, which barrels on from 0-62mph in 2.9sec - faster than some hypercars.

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  • Design10
  • Interior9
  • Performance8
  • Ride & Handling9
  • Costs9

Best for Style

BiK rate 3%

Driveability is well resolved, with an accelerator pedal that is nicely progressive in the standard mode

Monthly BiK tax at 20% £11.5

Monthly BiK at 40% £23

The ever-impressive Renault 5 is a good choice for company car drivers with shorter commutes, or for those who prefer nipping around in smaller cars.

It also commands a 3% BiK rating, which, thanks to its low list price, means even more money can be saved every month if purchased via a compnay car scheme. 

The small French EV comes with a choice of two batteries, measuring 40kWh and 52kWh and offering 190 and 250 miles of range respectively. Urban economy is excellent, but those with longer commutes may be left disappointed by the 5's cruising economy. 

In Urban spec, the 5 produces 121bhp, but Comfort cars manage a punchier 148bhp. That’s enough to propel the Renault 5 from 0-62mph in 8.2sec. 

For the price, though, keener drivers will be most impressed by the model’s engaging and overall excellent ride and handling balance.

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  • Design8
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  • Ride & Handling7
  • Costs8

Best for Boot space

BiK rate 3%

The Model Y doesn’t have class-leading knee or head room, but they’re good enough, and because the bench is set fairly high, the seating position is comfortable

Monthly BiK tax at 20% £22.5

Monthly BiK at 40% £45

The Tesla Model Y is a former UK best-seller, and we’d wager that a significant chunk of those vehicles were fleet and company car sales. 

The electric SUV is one of the most practical cars on sale full stop, never mind within its segment. Its huge boot measures 854 litres, but there’s also a front boot and vast under-floor storage. 

Range is competitive, with base models offering 311 miles, while Long Range versions get 387 miles. Potent performance is similar to that of the smaller Model 3, with the potential to hit 62mph from rest in 5.6sec. Move up to the AWD car to shave more than a second from that time.

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  • Design9
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Best for Fast charging

BiK rate 3%

Polestar has also enhanced the 2’s rapid charging capability. A 150kW peak draw becomes a maximum-rated 205kW.

Monthly BiK tax at 20% £22.5

Monthly BiK at 40% £45

Polestar’s mid-size saloon is also a popular choice with company car drivers, and it’s certainly a recommendable option, with a 3% BiK banding. 

An update in 2024 brought improved range and performance, putting the model on an even stronger footing against its rivals. 

In entry-level Standard Range Single Motor form, the Polestar 2 has a claimed range of 344 miles, but this rises as high as 408 miles in the Long Range Single Motor variant. 

Power is also impressive as standard. Basic models produce 268bhp with a 0-62mph time of around 6.0sec, but you could opt for a dual-motor model, which produces 469bhp and will hit 62mph from rest in 4.0sec.

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  • Design8
  • Interior8
  • Performance7
  • Ride & Handling8
  • Costs8

Best for Daily driving

BiK rate 3%

This Audi would seem to be the kind of EV whose driving experience is intended not to stand out but blend in, then; not to surprise but to oblige and reassure.

Monthly BiK tax at 20% £23.25

Monthly BiK at 40% £46.5

Audi’s electric SUV has been around for several years now, but there’s still good reason to select it as a company car. 

Aside from its 3% BiK band, the Q4 E-tron is well-equipped, premium-feeling and comfortable for up to five, with equipment such as keyless entry, heated sports seats, a reversing camera and front and rear parking sensors included as standard. 

Audi offers several trim levels, but our recommendation is the Sport 45 E-tron, which is capable of up to 338 miles on a single charge. It has good usable performance, too, hitting 0-62mph in 8.1sec.

Other options add all-wheel drive, and, in its fastest specification, the Q4 E-tron can manage 0-62mph in 5.4sec.

Find Audi Q4 E-tron deals with Autocar

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