CARS TO BUY
THE BEST COMPANY AND WHAT YOU PAY If you’re choosing a company car, from a supermini to a performance model, our guide will help you find the perfect match
COMPANY cars are still big business in the UK, with around a half of all new sales going to the fleet market.
So manufacturers are keen to cash in, even developing special ‘business models’ to maximise value for money for thousands of user chooser motorists. These machines are kitted out with extras that help them stand out in the corporate car park and ease the stresses and strains of life on the road.
But which model makes the most business sense? To help, we’ve crunched the numbers and scrutinised the spec sheets to pick some of the cars that’ll beat down your Benefitin-kind bills; our colleagues at online car retailer Buyacar.co.uk explain what BIK is and why it’s significant (below). Our picks were split into five price categories and we named six of the best in each. As company car taxes are based on CO2 emissions, all our choices are clean and efficient. But you won’t be lumbered with a stripped-out eco special.
In fact, you’ll be amazed at the variety of machinery you’ll be able to get your hands on, because the constant drive to improve efficiency and the fierce fight for sales means you can get a lot of car for your cash.
From city cars to hybrids, people carriers to premium saloons, there’s something for everyone, plus they won’t leave a large dent in your wallet when the Inland Revenue calls.
But picking a company car doesn’t always have to be all about the bottom line. To prove it, in each price band we’ve selected a fun choice that will put a smile on your face when you’re driving it and see how much it’ll save you.
1.2-litre 4cyl/89bhp 107g/km/60.1mpg 11.0 secs/115mph £14,710/18% HIGH RATE £88 LOW £44
IF you need more practicality than a supermini can provide at this price, how about a small estate? And there aren’t many that are better than the Skoda Fabia Estate.
Its 530-litre boot is nearly as big as a Ford Mondeo’s, and expands to 1,395 litres when you fold the rear seats, which have a 60:40 split. There are also bag hooks in the boot, and you can add a false floor for £110 and keep within the £15k budget.
At this price point the SE model fits the bill, as it blends low CO2 emissions with a competitive P11D price. Kit includes Bluetooth, rear parking sensors, DAB and electric front windows. Under the bonnet is the 89bhp 1. 2 TSI seen in the Polo, so its 160Nm of torque should give decent pulling power when the Fabia is loaded.
£16,790/16% 1.0-litre 3cyl/104bhp 99g/km/65.7mpg 10.5 secs/124mph
THE Vauxhall Astra has just lost its compact family hatch crown to the Renault Mégane, but our former champion still takes some beating for company car calculations.
Thanks to its low emissions, the 1.0-litre turbo version is a great business choice. The 104bhp three-cylinder engine emits 99g/km of CO2, so it falls into the low 16 per cent tax banding for business users, while Tech Line trim has been designed purely with the fleet market in mind.
That means it gets some gadgets to boost the car’s appeal for those who spend their life on the road. Chief among these is Vauxhall’s Intellilink sat-nav, while a multifunction steering wheel is thrown in, along with cruise control.
In addition, the Astra provides generous boot and interior space, while the car delivers a combination of ride comfort and handling agility that puts it on par with the class leaders.
£24,140/11% 1.8-litre 4cyl petrol-electric/121bhp 70g/km/94.2mpg 10.6 secs/112mph £89 LOW £44
GREEN cars also make great company cars, and you don’t have to look further than the Toyota Prius for proof. The fourth generation of the pioneering hybrid is offered in Business Edition trim, too, so it’s clear that Toyota knows its attraction to fleet users.
The Business version of the Prius officially emits 70g/km of CO2, and combined with an 11 per cent charge, that means you’ll be paying supermini levels of Benefit in Kind to the taxman.
But the best thing about the latest Prius is that as well as being a tax buster, it’s a great family car, with lots of room in its low-slung cabin and decent boot space, too. It’s also pretty good to drive, and although its performance won’t set the world on fire, it’s far more satisfying than its predecessors. Plus, the quiet hybrid drivetrain means it’s just as much at home on motorways as it is in town.
£24,745 £24,690/15% 1.8-litre 4cyl petrol-electric/134bhp 94g/km/68.9mpg 10.3 secs/112mph £123 LOW £62
FOR premium appeal at this budget, the Lexus CT makes sense. It’s not as stylish or involving to drive as some of its German rivals, but the compact petrol-electric hatch is a real Benefit-in-kind bargain.
A recent facelift and price cut have made the CT a fine choice for company drivers looking to cut a dash while saving cash, particularly in Luxury trim. Lower-rate earners will face a modest £62 a month salary sacrifice, but get leather, keyless entry and climate control. The cheaper Advance has sat-nav in place of the leather. Whichever you go for, you get the same flawless build and high-grade materials.
The hybrid drivetrain is ageing and the CVT box can send engine revs soaring, but the CT can go over a mile on zero-emissions electric power. And while suspension tweaks haven’t injected much fun into the package, the car’s relaxed nature soothes away the strains of work.
£23,890 £23,835/22% 1.6-litre 4cyl/113bhp 114g/km/64.2mpg Tbc/114mph
THE paint is barely dry on SEAT ’s new Ateca, but it’s already our favourite model in the cutthroat crossover class, having won that category at our 2016 New Car Awards. And the range of efficient engines available means it should be on the shortlist of any business user wanting the latest family-friendly off-roader-style car.
The 1.6 TDI diesel isn’t as potent as the larger 2.0 TDI, but it’s fast enough for most needs, while stop/start contributes to CO2 emissions of 114g/km for a reasonable monthly tax rate.
A budget of £24k will get you the keys to the well equipped SE Technology model which, like the SEAT Leon on which the Ateca is based, features the excellent LED headlight upgrade and sat-nav. Other kit includes rear parking sensors, a multifunction steering wheel, climate control and 18-inch wheels. The Ateca also has great handling for a high-riding crossover, a comfortable ride and plenty of passenger space.
A COMPANY car is essential for many drivers’ work, but Her Majesty’s Revenue & Customs sees it as a perk. The Government calls it a Benefit in Kind and, as with your wages, it’s liable to tax.
The amount of salary you have to sacrifice to get your hands on a company car depends on a number of factors, including the model’s CO2 emissions and P11D value. The latter is essentially the price of the car, including any options, minus the non-taxable costs such as the registration fee and the first year’s road tax.
There are currently 25 Benefit in Kind (BIK) bands, each based on a car’s CO2 emissions. The lowest-polluting cars attract a seven per cent BIK rate, with the highest levied at 37 per cent.
Until recently, electric cars were exempt from these charges, but these zero-emissions machines are now rated at seven per cent. Crucially, this figure is set to increase each year; by 2019 battery-powered models will be taxed at 16 per cent.
It’s also worth keeping in mind that diesel models have a three per cent surcharge over petrol versions with the same emissions. So make sure you do enough miles that the fuel savings outweigh the bigger BIK bills.
As our panel on Page 40 explains, the final part of the company car cost calculations involves your salary. If you fall into the 20 per cent income tax bracket, you’ll pay 20 per cent of the P11D value, while higherrate earners will fork out 40 per cent. Usually this will be deducted from your monthly pay packet.
£82,439/11% 3.0-litre V6, electric motor/410bhp 71g/km/91.1mpg 5.5 secs/167mph
A NEW Panamera is on the way soon, but until the next hybrid model is launched, the current car soldiers on. The saloon uses the same tech as the Cayenne E-hybrid SUV, combining a supercharged 328bhp petrol V6 with a 94bhp electric motor. That means the car is capable of 167mph, yet promises a supermini-beating 91mpg.
Like every other plug-in hybrid, you need to charge the Panamera frequently to reap the benefits, but fleet users will be quids in over other supersaloons, even if they don’t use the electric capacity.
As well as strong efficiency, the Panamera E-hybrid delivers the kind of driving enjoyment only a Porsche can. It handles like a car half its size and weight, with fast, accurate steering and sharp cornering agility, while the luxurious interior and refined road manners mean it’s pretty relaxing when you want it to be.
£35,820 £35,765/7% 1.4-litre 4cyl, electric motor/201bhp 39g/km/166.2mpg 7.6 secs/138mph
IF tax bills put you off running a Volkswagen Golf GTI as a company car, the Golf GTE could be the answer. This plug-in hybrid model is designed to mix the driving thrills of VW’S legendary hot hatch with supermini-sized running costs from the petrol-electric drivetrain.
The hatch combines a 1.4 TSI petrol engine with a 75kw electric motor to give 201bhp. That’s close to the GTI’S figure, while the bluetrimmed grille and distinctive running lights add a similar sporty appeal. Switch the standard dampers to GTE mode and it drives like a GTI, too, with rapid responses from the engine and chassis.
What sets the GTE apart is its lower running costs. Use the engine alone and claimed economy is 56.5mpg, but charge up regularly and you can go up to 31 miles before the TSI even cuts in. If you do lots of short trips, the engine may not fire into life at all.
£58,280/7% Single electric motor/377bhp 0g/km/n/a 5.5 secs/130mph HIGH RATE £136 LOW £68
THE pioneering Tesla Model S saloon is a wise choice for company bosses keen to minimise their tax bills. We’ve highlighted the entrylevel car with rear-wheel drive and a 60kwh battery; its £136 monthly bill is better than those of nearly every car in our £20k-£25k bracket.
But even the £106,000 90kwh Performance model with the Ludicrous pack sees higher-rate tax payers paying a monthly BIK rate of £247; if you want a different company car with a sub-threesecond 0-62mph time, you’ll be paying at least six times that.
Whichever version you choose, you’re buying into arguably the car maker of the moment; after all, the launch of the smaller Model 3 made the mainstream news, which is unheard of. And the Model S is the most convincing electric car on sale, with its roomy cabin, advanced tech and battery range starting from 210 miles.
£90,165 £90,110/11% 3.0 V6/108bhp; electric motor/449bhp 65g/km/100.9mpg 5.2 secs/155mph HIGH RATE £330 LOW £165
THERE is no finer luxury limousine than Mercedes’ S-class; that’s why it was crowned Best Luxury Car again at our 2016 New Car Awards.
While the range stretches from an entry-level diesel to the highperformance AMG models and hyper-luxurious Maybach version, the S 500 Plug-in offers something different again. Charge the battery and you will have a maximum claimed range of 19 miles, while the car’s opulent and refined cabin means you’ll be unlikely to notice when the engine eventually does come online.
The everyday advantages of this hybrid system will be limited, as the engine is likely to cut in more frequently than in some of our other picks, but the tax benefits can’t be denied. A £330 monthly BIK charge is just over half what you’ll pay on an S 350d in the same trim and wheelbase, so this is the managing director’s limo of choice.