The best company cars combine many different qualities. They’re comfortable to drive, allowing you to cover regular commutes and long-distance motorway schleps without fuss, and also practical enough to mix work and family duties. Modern safety features are a must for high-mileage company car drivers, while strong resale values help to keep leasing rates down.
Arguably the biggest prerequisite for your next company car, though, is the ability to keep your Benefit-In-Kind company car tax bill affordable. The amount you pay is calculated using the basic price of your car – known as the P11D value - and the BIK tax bracket it sits in. That bracket depends on the carbon dioxide emissions your car produces: the higher the emissions, the higher your tax bracket. To keep tax bills as low as possible, then, your car needs to have low carbon dioxide emissions or, better still, zero emissions. This is precisely what electric cars (EVs) and plug-in hybrids (PHEVs) offer, and why they have become the company cars of choice for most.
In this guide we'll run through what we think are the best company cars, and why. The majority are pure-electric cars, since these make by far the most financial sense. We understand that EVs don’t suit everyone, however, so we’ve also listed our favourite PHEV company cars, along with some advice on what to look out for if you’re choosing a plug-in hybrid model.
The Best Company Cars to Lease in 2025
- MG4
- Hyundai Kona Electric
- Kia EV3
- BMW iX1
- Tesla Model 3
- Skoda Enyaq
- Volkswagen ID.Buzz
- Mercedes-Benz GLC 300de
- Skoda Superb Estate
- MG HS Plug-in Hybrid
The best electric company cars
MG4
As we’ve said, you pay a very low percentage of company car tax with an electric car, and that percentage stands at just 3% for the 2025/26 tax year. Another way of minimising your tax bill even further is by minimising the price of your car, and that’s what makes the all-electric MG4 so compelling. It’s super-affordable by electric car standards, undercutting most of the competition by thousands rather than hundreds of pounds.
Despite its low price, the MG4 is delivers all the equipment, practicality and driving range you need for it to excel as both a business car and a family hatchback. It's an enjoyable car to drive, too, with darty, agile handling, a smooth ride and punchy performance. If the MG 4 doesn’t float your boat and you can get by with something slightly smaller, two other options we can heartily recommend are the Citroen E-C3 and Renault 5 E-Tech – both are stylish, good to drive and outstanding value for money
MG4 Review
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Hyundai Kona Electric
The Hyundai Kona Electric has always been one of the more popular electric car options in the UK, and the second-generation model – introduced in 2023 – is one of the best small electric SUVs . Significantly roomier and more stylish than the first model yet still great value, it also looks the business thanks to futuristic styling inspired by the bigger Hyundai Ioniq 5.
The Kona Electric is - by some considerable distance - the best Kona to drive, too, delivering a smoother ride and better refinement - due in no small part to its quieter electric motor - than its combustion-engined cousins. Standard equipment is especially generous, even on the entry-level model.
Hyundai Kona Review
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Kia EV3
Kia has chosen an unadventurous naming strategy for its range of electric-only models but the Kia EV3 – like the EV4, EV5, EV6 and EV9 – is a very bold, striking-looking car. In fact, if someone told you this was a concept car that was never going to hit the showrooms you’d believe them, but this is something you can have sitting on your drive right now.
Although it’s quite compact (it’s shorter than a Ford Focus), the EV3 is remarkably practical and has a large boot. It’s good to drive, too, and battery range is very competitive: up to 270 miles with the standard version or 375 miles with the larger battery option. Prices are higher than we’ve come to expect from Kia, but the EV3 is extremely well-equipped and even the entry-level model comes with wireless Apple CarPlay and Android Auto support, heated front seats and a heated steering wheel.
Kia EV3 Review
BMW iX1
The BMW X1 is BMW’s smallest SUV, but that doesn’t mean it's small in the scheme of things. The car has grown in size compared to its predecessor, meaning it has easily enough space to deal with anything a family can throw at it. The iX1 is the all-electric version, and like the rest of the X1 range, it delivers that practicality, along with a plushly trimmed interior, lots of equipment and technology, and an exemplary infotainment system.
The iX1 also gives you a supremely polished driving experience, with a comfortable ride, agile handling and superb refinement. OK, it’s not cheap – but the iX1 feels like a cut above many other SUVs of this size. Front-wheel-drive models have a range of up to 293 miles, while the more powerful four-wheel drive versions offer up to 270 miles.
BMW iX1 Review
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Tesla Model 3
Tesla is the automotive phenomenon of recent years but away from all the headlines the brand still makes excellent cars such as the Tesla Model 3. In fact, it’s easier than ever to recommend after some far-reaching changes in 2024. More stylish, quieter and with a higher-quality interior, it remains one of the best mid-size electric cars you can buy (or lease).
Maximum range is up to a remarkable 436 miles for long-range versions, so there’s little cause for range anxiety. And, of course, there’s the appealing convenience that comes courtesy of Tesla’s Supercharger network. We’ve gone for the Model 3 here because it’s the most affordable Tesla model, but the more popular Model Y SUV will do company car drivers just as well and provides useful extra practicality.
Tesla Model 3 Review
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Skoda Enyaq
We’ve always loved the Skoda Enyaq for its space, refinement and fine driving experience and it remains one of the best electric company cars thanks to some choice updates in early 2025. The restyled front end might not be a dealbreaker but it looks great and Skoda has increased the already lavish levels of standard equipment.
What hasn’t changed is the amazing amount of space in the cabin and boot, or the number of thoughtful ‘Simply Clever’ touches (an umbrella concealed in the door, anyone?) that make family life that little bit easier. It also offers good battery range and it’s great value for money. And if the looks of the standard model are still a bit plain for you there's always the sleeker – yet almost as practical – coupe version.
Skoda Enyaq Review
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Volkswagen ID.Buzz
When it comes to electric family cars, few are as practical or as desirable as the Volkswagen ID.Buzz. While its fabulous modern-retro looks are a big part of its appeal, the ID.Buzz is also incredibly spacious and versatile – as you'd expect an electric vehicle that’s also sold as a van. While the standard-wheelbase model has five or six seats, the long-wheelbase version has seven. Whichever you choose there’s lots of headroom and legroom for everyone on board and access is easy thanks to sliding side doors.
Prices start at more than £60,000, so the ID.Buzz is undeniably expensive, but other seven-seater electric cars such as the Kia EV9 and Volvo EX90 are hardly cheap. And if you’re leasing the ID.Buzz as a company car, its good residual values and low BIK rating are good news for your finances.
Volkswagen ID.Buzz Review
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The best plug-in hybrid company cars
If you’re choosing a plug-in hybrid company car, it’s important to remember that not all PHEVs are made equal. If you want it to qualify for the lowest company car tax rating possible, a plug-in hybrid must have official CO2 emissions of 50g/km or less. And for cars that meet that criteria there are still differences in tax banding depending on the amount of pure-electric range your car has, which could make a big difference to the amount of tax you pay.
For the 2025/26 tax year, if your PHEV has an electric range of less than 30 miles (according to official figures, not in the real world), then you’ll pay tax on 15% of the car’s value. Cars that do up to 39 miles on battery power will be charged at 13%. However, if your car can beat the 40-mile barrier (and many can), your tax rate drops to just 9%.
Get yourself a car that can beat the 70-mile mark and that tax rate drops to just 6%. The good news is that an ever-increasing number of PHEVs that achieve this, including models from Audi, BYD, Cupra, Land Rover, Mercedes-Benz, MG, Seat, Skoda and Volkswagen.
Here are our top three plug-in hybrid company cars.
Mercedes-Benz GLC 300de
If you want a super-comfortable plug-in hybrid SUV that has low BIK rates and is capable of mega miles before you need to top up with either electricity or fuel, the Mercedes-Benz GLC 300 de is hard to beat. It’s one of the few diesel-electric hybrids around and in addition to official fuel economy of more than 700mpg it has an electric-only range of 84 miles, so it qualifies for the super-low 6% tax band.
It’s a great company car in other ways, too. Being a Mercedes, it has a spacious, gorgeously trimmed interior with stacks of luxury kit and a cutting-edge touchscreen infotainment system, while it’s also a comfortable, refined and luxurious car to drive. The equivalent C-Class saloon or estate with the same powertrain are great, too, but the GLC’s longer electric range and useful extra space and versatility seal its place here.
Mercedes-Benz GLC Review
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Skoda Superb Estate (2024-)
Looking for maximum practicality and comfort for minimum cost? Then let us point you in the direction of the Skoda Superb Estate. All-new for 2024, the latest Superb is bigger and better than ever, offering the kind of space, refinement and equipment of a big executive car for a fraction of the price and running costs.
Go for the plug-in hybrid model – snappily named 1.5 TSI iV 204PS DSG – and you get a pure-electric range of 84 miles that means a 6% BIK rating for the 2025/26 tax year. Petrol and electric power work harmoniously together to give strong, smooth acceleration, as well as official fuel economy of about 700mpg. Interior space is, frankly, ludicrous and no estate car has a bigger boot. Add in a comfortable ride and comprehensive level of kit and this is a car that eats up the miles effortlessly.
Skoda Superb Review
MG HS Plug-in Hybrid (2024-)
The resurgence of the MG brand in recent years has been based on its affordable electric cars and its lineup now includes some great-value hybrid cars too. Of those the MG HS Plug-in Hybrid is a standout, giving you an awful lot of car for your money. It’s about the same size as a Toyota RAV4 and is similarly practical, but prices start at about £12,000 less than the equivalent RAV4 PHEV. The MG has a longer electric-only range, too, placing it in the 6% BIK bracket.
Although it’s not the best car to choose if you’re looking for a thrilling drive, the HS is smooth and reassuring to travel in and the interior has a pleasantly upmarket look and feel. Despite its competitive pricing, the HS comes with plenty of toys as standard – SE trim includes lots of advanced safety features, a rear-view camera and 19-inch alloys. Top-of-the-range Trophy trim doesn’t add much extra cost and it comes with heated front seats, an electrically powered bootlid, wireless phone charging and a 360-degree parking camera.
MG HS review
All figures correct at the time of publication, but are subject to regular changes and so should be checked independently. If you ever need to make a complaint about your lender, contract hire provider, credit broker, or car leasing company, get in touch with the Financial Conduct Authority