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Best cheap company cars: budget business stars

Company cars are one of the best perks of certain jobs. Unfortunately, we can’t all drive around in Jaguars and Mercedes, so which are the best cheap company cars? The motors on this list are all great cars and should be easy to recommend to your boss.

If you like the look of any of these cars, put them in our car configurator to see how much carwow could help you save. If you’re lucky enough to have a larger allowance, read our list of the best company cars sorted by price or, for more information, check out our guide to UK road tax.


The SEAT Leon is an excellent car thanks to its agile handling, respectable refinement, great build quality and punchy economical engines. Styling is subjective but, to our eyes, this is one of the best looking cars on the market.

The 1.2-litre turbo petrol engine is especially good if you want it as a company car. It returns up to 57.6mpg on average and, thanks to low CO2 emissions, you’ll pay £584 on 20 per cent tax or £1,168 on 40 per cent for the whole year.

Put the SEAT Leon in our car configurator to see what discounts are available.

Skoda Citigo

The Skoda Citigo is a great car thanks to its robust build quality, economical engines and surprisingly practical interior considering it has such a small cabin. As a company car, it’s one of the cheapest options on the market.

If you go for Elegance trim with the 74hp 1.0-litre three-cylinder petrol, your annual tax bill for 20 per cent payers will be about £299 and roughly £598 for 40 per cent payers. It can return up to 67.3mpg so, whichever way you look at it, the Citigo won’t have big monthly costs.

See the deals on offer by picking your ideal Skoda Citigo in our car configurator.

Mini One

While the latest Mini hatchback isn’t as compact as predecessors, it’s a much better vehicle for everyday use. It’s more refined, more comfortable, more economical and more practical than before. More importantly, however, it hasn’t lost that key ingredient which makes the Mini what it is – its direct and fun handling.

The cheapest Mini – in One trim with a 101hp 1.2-litre petrol – averages around 61.4mpg and will cost you around £438 for the 20 per cent tax rate and around £876 for people in the 40 per cent rate annually.

Choose your ideal Mini hatchback in our car configurator to see the deals on offer.

Skoda Fabia

The Skoda Fabia is a must see if you’re looking for a cheap company car. Its German build quality, ergonomic interior, impressive practicality, comfortable ride and economical and punchy engines make it hard to criticise.

The SE model with the 1.2-litre 89hp petrol can accelerate from 0-62mph in 10.9 seconds, average around 60.1mpg and emit just 107g/km of CO2. This means it’ll cost company users in the 20 per cent tax bracket £427 for the year and around £853 for people who pay the 40 per cent rate.

See what reductions are available by speccing up a Skoda Fabia in our car configurator.

Citroen C4 Cactus

The Citroen C4 Cactus isn’t the most luxurious car the French brand has ever produced, but its combination of back-to-basics engineering with hints of modern day technology make it fit for any family. It’s safe, spacious, comfortable and very well priced.

For company car users, the best package would be the Feel trim with the 81hp 1.2-litre three-cylinder petrol. It returns up to 61.4mpg and it emits 107g/km of CO2. So, for 20 per cent payers, the annual price will be around £465 and around £930 for the 40 per cent tax payers.

See the potential discounts by picking your perfect Citroen C4 Cactus in our car configurator.

Peugeot 208

The Peugeot 208 is one of the most refined cars in its class. It’s also one of the most stylish too, especially with its new facelift. It also has some of the most economical engines around. For instance one of its diesels can return nearly 95mpg.

If you want that engine for your company car – the 1.6-litre BlueHDi 75 – we recommend you pick Active trim with goodies such as air conditioning, Bluetooth, alloy wheels and a dashboard mounted tablet-style touchscreen. Its annual costs equate to £468 for 20 per cent users and £936 for 40 per cent users.

See how much you could save by choosing your favourite Peugeot 208 in our car configurator.

Dacia Duster

The Dacia Duster deserves a place in this list for the sheer amount of car you get for the money. Many rivals cost twice as much so it’s a bargain. The Duster isn’t as modern, as luxurious or as generously equipped as other SUVs but, for its off-road talents and the amount of practicality it offers, it’s very tempting indeed.

Equipped with the responsive 109hp 1.5-litre diesel engine and four-wheel drive on the Ambiance trim, the Duster will cost around £690 annually for 20 per cent payers and £1,381 for 40 per cent payers.

Ford Fiesta

At the time of writing, the Ford Fiesta is the most sold car in the UK. Its combination of supreme handling, ‘big car’ comfort, distinctive classy styling and low price tag help it become one of the best automotive packages ever created.

For company car buyers, the 99hp 1.0-litre EcoBoost engine in Zetec trim makes the most sense. It achieves over 65mpg on average and emits just 99g/km of CO2. With a P11D value of £14,140, annual company car tax amounts to £396 for the 20 per cent band and around £792 for the 40 per cent one.

See what deals are available by speccing up a Ford Fiesta in our car configurator.

What next?

Put any of these cars in our car configurator to see how much money carwow could help you save. For more options, head over to our deals page or, if you’re still struggling to pick what car you’d like, check out our car chooser.

Peugeot 208

A cheap-to-run and stylish supermini
£14,315 - £18,065
Read review Compare offers

Skoda Fabia

Very capable, safe and well-made supermini
£10,525 - £18,745
Read review Compare offers
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