Best company cars £20,000 to £25,000

Here are the best company cars for between £20,000 to £25,000

With over £20,000 you can get yourself a former Auto Express Car of the Year in the Skoda Octavia, a proper hot hatch with the Hyundai i20 N or the best car to buy according to our readers, the Kia XCeed. BiK tax rates range quite significantly in this selection so choose wisely. 

Scroll down to check out the best company cars you can get between £20,000 to £25,000...

Skoda Octavia 1.0 TSI SE

  • Price: £23,335
  • Engine/power: 1.0-litre 3cyl/108bhp
  • CO2/BiK band: 117g/km/28% 
  • 0-62mph/top speed: 10.8 secs/129mph  

The latest Skoda Octavia is a stunning all-rounder. Not only is it an efficient, cheap-to-run company car choice, it’s also a fantastic family car that’s comfortable, good to drive, roomy and affordable to buy. It was a 2021 Auto Express Award winner, too, and it’s the 1.0-litre petrol version that delivers the best Benefit-in-Kind costs.

The Octavia has become known for its practicality, and it’s certainly one of the most spacious family cars around. There’s a 600-litre boot and loads of room in the rear seats even for adult passengers. It’s comfortable to drive and the small petrol engine is punchy enough, yet it’s also really quiet.

Equipment is good too, because SE trim comes with LED lights, cruise control, parking sensors, lane assist, AEB, keyless start, voice control and a 10-inch touchscreen display with Apple CarPlay and Android Auto as standard. The infotainment offering in particular is very good for this kind of budget. It looks great, is easy to use and has loads of cutting-edge features.

​​Renault Captur TCe 90 Evolution

  • Price: £22,195
  • Engine/power: 1.0-litre 3cyl/89bhp 
  • CO2/BiK band: 133g/km/31% 
  • 0-62mph/top speed: 11.0 secs/112mph  

Compare the Captur to the closely related Clio, and the technical details will show that the former is less efficient, more expensive in tax and slower. However, it’s also more practical and has a sliding rear seat bench for added versatility.

Renault’s small SUV mixes a comfortable ride with neat handling, and delivers relaxed motorway manners. The interior looks smart and feels more upmarket than the price might suggest – it’s also very spacious and has a generous boot – so it’s really good value next to other similar-sized SUVs. The 1.0-litre engine isn’t as punchy as it is in the smaller Clio, but it still does a fine job here.

If you can stretch to the E-Tech hybrid model, which comes in at just under £25,000 at the time of writing, the CO2 emissions drop to 113g/km. That gives a lower BiK rating and decreased monthly tax costs.

Hyundai i20 N

  • Price: £24,995 
  • Engine/power: 1.6-litre 4cyl/201bhp 
  • CO2/BiK band: 158g/km/36% 
  • 0-62mph/top speed: 6.2 secs/142mph 

The standard i20 is a great company car for sensible reasons, but if you’re craving driving thrills, the i20 N hot hatch is worth considering. It has all the same practicality as the normal version, yet it’s fast and fun to drive.

There’s a 0-62mph time of 6.2 seconds, the engine revs quickly and the slick manual gearshift is great fun to use, plus there’s loads of grip and an entertaining chassis. One thing to bear in mind, though, is that the i20 N has much stiffer suspension than the normal car and it can be uncomfortable over bumps, particularly at lower speeds.

It’s good value, though, because little else can match its performance at this price, plus it comes with 18-inch wheels, sports seats, LED headlights, heated seats, parking sensors, keyless entry and two 10.25-inch screens.

Kia XCeed 1.0 T-GDI Connect

  • Price: £21,835
  • Engine/power: 1.0-litre 3cyl/118bhp 
  • CO2/BiK band: 135g/km/32%  
  • 0-62mph/top speed: 11.1 secs/115mph

In our 2022 Driver Power survey of new car owners, the Kia XCeed came top of the pile. It seems that whether it’s you or your company as the registered keeper, the XCeed is a joy to live with. Reliability, infotainment and running costs were among the many areas of praise, with the latter being particularly important for business buyers.

There is an XCeed plug-in hybrid model with fantastically low BiK costs, but it’s a lot more expensive to buy and less practical than the standard car thanks to a reduction in boot space. The two regular petrol engines both manage around 45mpg, and the reasonable price of the Connect trim helps keep costs down.

All versions of the XCeed get two-tone alloy wheels, LED headlights and a 10.25-inch touchscreen with sat-nav and smartphone connectivity. Of course, if you’re planning to keep the car for longer than average, Kia’s seven-year/100,000-mile warranty may appeal.

Toyota Yaris 1.5 Hybrid Design 

  • Price: £21,460
  • Engine/power: 1.5-litre 3cyl & e-motor/114bhp (total)
  • CO2/BiK band: 92g/km/23%
  • 0-62mph/top speed: 9.7 secs/108mph

Hybrid drive means the Yaris has a small electric motor alongside its petrol engine, and it’s quiet, relaxing and efficient around town. Low CO2 emissions mean it’s a really affordable company car, too.

The Yaris’ talents don’t stop there, because the latest model is great to drive, is relatively practical and has a pleasant and well equipped cabin. Since all versions are automatic, it’s a great choice for commuting, no matter whether you have a short hop in town or a longer drive over some twisty country roads. The Design trim comes with all of the standard equipment that you could possibly need, too.

Ford Puma 1.0 125 mHEV Titanium

  • Price: £24,145 
  • Engine/power: 1.0-litre 3cyl/123bhp 
  • CO2/BiK band: 122g/km/29%  
  • 0-62mph/top speed: 9.8 secs/119mph 

The Puma shares its tech with the fantastic Fiesta, but builds it into a more practical and stylish SUV body. 

One of the key bits of engineering that’s carried over is the efficient and punchy EcoBoost petrol engine, which in this model has 123bhp – that’s plenty for a small SUV and means 0-62mph takes less than 10 seconds. The Puma is great to drive, too, with a slick gearshift, quick steering, a composed chassis and an enjoyable thrum from the three-cylinder petrol engine. It’s also a mild hybrid, which means efficiency is good too: 122g/km of CO2 means reasonable tax bills.

One of the stand-out features is the MegaBox in the boot, which is a huge underfloor storage area that’s so deep, you can stand a set of golf clubs upright in the boot. Another Puma highlight is that it’s good value for money; our preferred Titanium trim comes with 17-inch alloys, auto headlights, a heated windscreen, parking sensors and an eight-inch touchscreen infotainment system with Android Auto, Apple CarPlay, Bluetooth, DAB, voice control and two USB ports.

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