What company cars should I choose for my company?

As well as being reliable and efficient, a good company car should be impressive and aesthetically-pleasing, with a spacious cabin and boot. All of our cars are high quality and maintained, so reliability is out of the question – plus maintenance is included in the price for all short-term leases!

However, there are a number of other considerations that you may have to take into account when choosing a company car, such as:

  • BIK tax/emissions
  • Journey types
  • Diesel vs petrol
  • Branding
  • Family considerations and personal use

BIK tax and emissions

We’d recommend reading our guide to calculating BIK (benefit in kind) tax, as it’s an important consideration when calculating the costs of a company car or fleet. In short, the less emissions a vehicle generates the less BIK tax there is, with further benefits for electric vehicles.

Journey Types

A short commute in the city is going to require a very different type of vehicle than what frequent motorway travel would entail-for example, the following characteristics would be of more benefit to company drivers where short urban journeys are the norm:

  • Ease of parking
  • A car reasonably small in size (or at least not very large!)
  • Precise steering, and a tight turning circle
  • Electric vehicles will cause less urban pollution, and charging points will also be more plentiful in urban areas.

For drivers that will more often be doing longer distances, the following may become more important:

  • Comfort
  • Fuel economy
  • Reliability
  • In-car features

Diesel vs petrol-which should I choose?

HMRC have very recently increased the surcharge on diesel BIK tax from 3% to 4%, and with more and more cities likely to ban or restrict diesels from their centres, they do generally seem to be a less popular option than previously. However, given the smaller price gap between petrol and diesel over the last few years and the generally higher MPG that diesels will do, it’s important to calculate which is better for your business.

Branding

An important consideration, as the vehicle and driver will be representing the company in the course of daily use-does the vehicle’s appearance reflect the company’s values and corporate image? A renewable energy business may be best served by having a fleet of electric rather than diesel vehicles, for example.

Personal/family use

As many company cars will be used outside of work for driving the family around, aspects such as safety, in-car entertainment systems and space (can kids fit in the back easily?) Tend to become more important.

Remember, if you need any help please just call us on 0800 311 8290!

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