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The Best Company Cars For 2021

Need a vehicle for business use and you want to know what will cost you the least in benefit-in-kind (BIK) taxation? Then we’ve collated a list of the best company cars for you, for the 2021/22 tax year and beyond. It used to be that diesel-powered cars were favoured in this market for their low CO2 outputs, but the shift in recent years with BIK has heavily favoured part-electric or fully electric cars. So we’ve come up with a mix of hybrids (HEVs), plug-in hybrids (PHEVs) and pure electrics (EVs) that should suit your company-car needs, whether you do long motorway journeys on a regular basis or whether you’re an urban-based daily commuter.

1. Tesla Model 3

Type: EV | CO2: 0g/km | BIK: 1% (2021/22), 2% (2022/23, 2023/24) | Best For: Long-Distance Drivers

TeslaModel3-thumb The Tesla Model 3 is probably the strongest choice on this list. Due to the fact it is pure electric, you could argue the Model 3 would be perfect for city commuters, especially those who live near congestion-charging and low-emissions zones. And it would be, undoubtedly, but the Tesla’s real strength is a driving range of up to 360 miles in one hit on the Long Range model. Not only that, but the car can do 0-62mph in 4.2 seconds, so it’s mighty quick as well as super-clean.

2. BMW 330e

Type: PHEV | CO2: 31g/km | BIK: 11% (2021/22), 12% (2022/23, 2023/24) | Best For: Long-Distance Drivers And City Commuters

BMW330e-thumb You can’t have a list of great company cars and not include a BMW 3 Series. Better yet, the 330e teams a 2.0-litre 4-cylinder turbo petrol engine to an 83kW (113hp) electric motor for a combined peak output of 292hp. It’s therefore just as good whizzing silently around city streets, which it can do for up to 37 miles as a 4-door Saloon (there’s a Touring estate available too), as it is cruising along motorways on its petrol engine. Fuel economy is said to be in the order of 134.5mpg, but you obviously need to charge it regularly and drive in EV mode to hit this sort of number in reality; figure on around 50mpg as a more truthful figure, which is still pretty impressive for such a well-sorted car.

3. Skoda Superb iV

Type: PHEV | CO2: 31g/km | BIK: 11% (2021/22), 12% (2022/23, 2023/24) | Best For: Long-Distance Drivers

SkodaSuperb-art Another plug-in hybrid and we could have selected a Skoda Superb TDI for straightforward motorway work. You could look at one of the 2.0-litre turbodiesels for that reason and they would be brilliant company cars, but for the lowest BIK you need this iV plug-in hybrid. This pairs a 1.4-litre TSI petrol to an 85kW (115hp) electric motor, for 218hp overall. You’ll enjoy 35 miles of all-electric driving and the Superb is absolutely imperious on the motorway, where its smooth ride and excellent refinement make it one of the strongest cars going in any class.

4. Volkswagen ID.4

Type: EV | CO2: 0g/km | BIK: 1% (2021/22), 2% (2022/23, 2023/24) | Best For: City Commuters

VolkswagenID4-thumb You could go for the less expensive, smaller ID.3 hatchback, but we reckon the Volkswagen ID.4 SUV is a more appealing company-car proposition. Pick a model with the larger 77kWh battery and you can go up to 310 miles on a single charge, which might mean a city commuter could drive to and from work all week without ever plugging it in once. You get all this while enjoying the lowest BIK rates in the process, as well as something that can double up as a practical family car with its spacious cabin and 543-litre boot.

5. Mercedes-Benz E300de

Type: PHEV | CO2: 33g/km | BIK: 11% (2021/22), 12% (2022/23, 2023/24) | Best For: Long-Distance Drivers

mercedes-e300de The clever trick Mercedes pulls off here is to create a plug-in hybrid that uses a turbodiesel engine, instead of a turbo petrol. There is an E300e if you don’t fancy this ‘de’ model, but because this E-Class runs on diesel when the battery is exhausted then it will give you far better real-world economy than most petrol PHEVs. You might not readily get the 235.4mpg quoted by Mercedes, but 60-70mpg is not out of the question and there’s also 34 miles of pure-electric driving to fall back upon too.

6. Toyota Corolla Hybrid

Type: HEV | CO2: 111g/km | BIK: 26% (2021/22), 27% (2022/23, 2023/24) | Best For: Long-Distance Drivers And City Commuters

model-toyota-corolla-saloon The only car on our list which isn’t an EV or PHEV, hence it has higher BIK requirements. However, the Toyota Corolla Hybrid is a really smart-looking machine, in either regular Hatchback or Touring Sports estate form, while the cabin is great as well. Go for the bigger 2.0-litre Hybrid engine, as it’s more pleasurable to live with than the 1.8, and the Corolla’s ‘self-charging’ status means you don’t need to think about getting the best economy from it – the car does it all for you, without ever needing to be hooked up to the mains. While prioritised for long-distance duties, it works well in cities too as that’s where the Toyota will run on its electric power only for most of the time; this is because it can only do such a thing when travelling at low speeds or coasting.

7. Volvo XC40 T5

Type: PHEV | CO2: 47g/km | BIK: 13% (2021/22), 14% (2022/23, 2023/24) | Best For: Long-Distance Drivers And City Commuters

VolvoXC40-thumb (1) The Volvo XC40 is one of the best premium crossovers in its sector, if not THE best. So adding an advanced plug-in hybrid drivetrain to the range is hardly going to hurt matters. Especially when the small 10.7kWh battery pack does not impinge on boot or passenger space – both are exactly the same for the PHEV as they are on the combustion-powered XC40s. The T5 has a charismatic 1.5-litre 3-cylinder turbo petrol and a 60kW (82hp) electric motor for a combined 262hp, so it’s quick. And while it can’t travel quite as far in zero-emissions mode as other PHEVs (28 miles), resulting in slightly elevated BIK tax bills, it nevertheless should have enough about it to do a short daily commute on electric power alone, provided you recharge it after each work journey.

8. Vauxhall Corsa-e

Type: EV | CO2: 0g/km | BIK: 1% (2021/22), 2% (2022/23, 2023/24) | Best For: City Commuters

model-vauxhall-corsa-e-electric-hatchback- An excellent electric car qualifying for the lowest rates of BIK available, the Vauxhall Corsa-e should be perfect for urban business commuters. Its 50kWh battery pack allows for up to 209 miles of driving on a single charge, which should be more than enough for most people’s weekly urban commuting needs – and when you do need to plug it in, the Vauxhall can boost its battery back up at a rapid 100kW DC speed, meaning shorter charging times. That the latest Corsa is also a great-looking car, inside and out, and is also really cheap to lease only seals the deal.

9. Ford Mustang Mach-E

Type: EV | CO2: 0g/km | BIK: 1% (2021/22), 2% (2022/23, 2023/24) | Best For: Long-Distance Drivers

Mustang-mach-e There are 4 models of Ford’s daring Mustang Mach-E electric SUV to choose from, but you really want 1 of the 2 models with the larger 98.7kWh ‘Extended Range’ battery pack. This is best employed on the single-motor Rear-Wheel Drive (RWD) model, which will go up to 379 miles on a single charge – the longest EV driving distance on this list, by the way. Therefore, realistically, you should be able to get 250-300 miles out of the Ford on every business trip, plus it’s also a large and prestigious SUV that you can press into service as the main family vehicle on the evenings and at weekends. For you keener drivers, the even better news is that the Mustang Mach-E is an utter hoot to drive on the right roads.

10. Range Rover Evoque P300e

Type: PHEV | CO2: 32g/km | BIK: 7% (2021/22), 8% (2022/23, 2023/24) | Best For: Long-Distance Drivers And City Commuters

LandRoverRangeRoverEvoque-thumb The Range Rover Evoque P300e is a petrol-electric plug-in hybrid with 2 tricks up its sleeve: 1, it is one of the very few PHEVs which can charge on a DC connection of up to 32kW, meaning super-fast battery charging times; and 2, its manufacturer also claims 41 miles of EV driving range, which slightly trims its BIK requirements to even lower levels. As it’s an Evoque, it will look stylish and desirable on city streets as a weekly commuter’s choice of wheels, capable of driving to and from work in zero-emissions silence with daily charging, but the P300e will also do the long-haul duties well thanks to its efficient 1.5-litre 3-cylinder engine.

Also Check Out:

  • Audi A3 TFSIe Or A6 TFSIe
  • BMW iX3 Or X5 xDrive45e
  • Ford Puma MHEV
  • Kia e-Niro
  • Mercedes-Benz A250e
  • Peugeot 3008 Hybrid Or 508 Hybrid
  • Skoda Octavia iV
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