What really makes the perfect business car? What businesses actually want
Back to 'Expert guides'Between rising costs, tax changes and the electric transition, business leasing priorities are undergoing a transformation. Behind every company vehicle is a strategic decision, considering the costs, reliability, tax savings and more.
To find out what today’s businesses really want from their fleet, we surveyed visitors to the business car leasing pages on Leasing.com, the UK’s biggest leasing comparison site. We combined these insights with internal leasing data to construct a blueprint for the ideal business vehicle.
The most important factors for businesses
We asked users visiting Leasing.com what matters when choosing company cars:
- Low monthly lease costs - 34%
- Low fuel/energy costs - 10%
- Minimal maintenance and downtime - 7%
- Flexible lease terms - 7%
- Strong tax advantages - 7%
What came out on top?
Monthly affordability trumped everything at 34%, so much that it’s more than 20% higher than the other factors. The second most important factor is low fuel costs at 10%.
The cost-of-living crisis is still affecting businesses, and they’re looking to cut costs where possible. The Federation of Small Businesses (FSB) reveals that 85% of businesses have reported rising costs since last year, and a striking 23% said their costs had increased by more than 10%.
Minimal maintenance, flexible lease terms and strong tax advantages, were equally important at 7%, coming in third.
BMW is the most popular company car brand
When it comes to manufacturers, it appears company fleets have their favourites. The most enquired about brand for business leases is BMW at 12%. It’s not surprising it’s a favourite for businesses; the brand blends executive style without excessive cost, and has a reputation for performance and polish.
Ford (10.3%) and Volkswagen (9.6%) follow closely, highlighting that businesses still favour familiar, practical marques. These are dependable workhorses that don’t compromise on drivability or long-term value.
Audi (7.2%) rounds out the top four, offering that subtle luxury edge. While Land Rover (6.7%) and Tesla (6.7%) both sit in fifth place they couldn’t be more different, one known for its ruggedness, whereas the other offers luxury and sustainability.
Electric reigns king for businesses
We dug into Leasing.com’s first-party data, analysing business lease enquiries over the past five years, and, surprisingly, electric comes out on top for company cars.
- Electric - 42%
- Diesel - 23%
- Petrol - 18%
- Hybrid - 16%
While just 4% of survey respondents said an electric or hybrid powertrain was a top priority, the leasing data tells a different story.
Electric vehicles make up 42% of business leasing enquiries, well ahead of any other powertrain. Companies may not say their priority is electrification, however, 8% of respondents said strong tax advantages, such as Benefit-in-Kind (BiK) savings, were a top priority.
BiK rates are calculated based on the car’s price, employee income tax rate, and the vehicle’s CO2 emissions. The maximum BiK 2025 rate you would pay for EVs is 3%, hybrids 13%, and for non-electric vehicles, this could be as much as 37%. This means businesses are increasingly choosing EVs and hybrids due to financial pressures for cost and tax savings.
Diesel still powers on in second place
Diesel still remains popular for businesses, accounting for 23% of enquiries in five years. While media headlines and policy pushes a zero-emission future, many businesses are still quietly choosing diesel.
Even in 2025, diesel hasn’t vanished. While electric leads at 52% and hybrid climbs into second at 19%, diesel still holds a solid third place at 16%, beating petrol (13%) in year-to-date enquiries.
In the real world of fleet logistics, diesel can hugely benefit long-distance drivers, heavier vehicles, and rural journeys where charging infrastructure is limited. While EVs are rising, infrastructure hasn’t caught up in every region. 43% of public charge points are concentrated in London and the South East, leaving many rural and less affluent areas patchily served.[1] At the current installation pace of around 20,000 new chargers per year, Leasing.com estimates the UK to fall 100,000 short of its 2030 target of 200,000 public chargers [2] - a key milestone for aligning with the Net Zero Paris Agreement. Diesel’s lingering popularity is likely not a rejection of progress but a logistical compromise.
Why SUVs dominate business leasing
Once the domain of off-road enthusiasts and weekend adventurers, SUVs have now cemented their place in the corporate world, accounting for more than half of business lease enquiries. Over five years, SUVs have amounted to 51% of business lease enquiries, making them the most in-demand body style across the board.
SUVs tick all the right boxes for businesses, offering professional styling, the flexibility of a van, and the comfort of a premium car.
Hatchbacks placed second at 12%. This body type usually has a better fuel economy, and often lower monthly costs due to its smaller size - which makes sense when we look at the survey data, and see that most businesses are looking to lower costs. Interestingly, both car body types far outpace the saloon, with just 7% of enquiries, placing third.
The verdict: the perfect business car
Bringing the data together, the ideal company car in 2025 looks very different from what you might expect. It’s not a diesel saloon with leather seats and a flash badge. Instead, it’s:
? Fully electric
? Cost-conscious with a low monthly lease
? SUV or hatchback
? Manufactured by BMW, Ford, or Volkswagen
? Leased for around 35 months, giving financial predictability without long-term commitment
? 10,000 mileage plan (with 28% of business enquiries choosing this mileage)
The motivations behind company car choices are practical, but the outcomes are surprisingly progressive.
Mike Fazal, CEO at Leasing.com, says: “The company car has changed. It’s no longer just about prestige, it’s about practicality and performance. We’re seeing more businesses lean into electric options - not because it’s trendy, but because it makes financial sense.
“What really stands out is how pragmatic companies have become. They want low monthly payments, predictable terms, and zero drama. The badge on the car? It matters, but only if the numbers stack up.”
Methodology
We analysed first-party data of business leasing enquiries from 2020 to 2025. We combined these results with survey data after polling 58 visitors to business car leasing pages on Leasing.com, and asking users to select up to three of the most important factors when choosing company cars.
Most popular brands for businesses
| Make | % of Enquiries |
| BMW | 11.90% |
| Ford | 10.30% |
| Volkswagen | 9.60% |
| Audi | 7.20% |
| Land Rover | 6.70% |
| Tesla | 6.70% |
| Nissan | 5.10% |
| Mercedes-Benz | 4.50% |
| Volvo | 3.30% |
| KIA | 3.20% |
| Hyundai | 3.10% |
| Toyota | 3.10% |
| Peugeot | 2.80% |
| Body Type Lease | |
| SUV BCH | 50.58% |
| Hatchback BCH | 12.30% |
| Saloon BCH | 8.05% |
| Coupe BCH | 3.21% |
| Estate BCH | 3.14% |
| MPV BCH | 0.67% |
| Convertible BCH | 0.22% |
| Mileage | |
| 10000 | 27.90% |
| 8000 | 19.10% |
| 5000 | 17.90% |
| 15000 | 11.90% |
| 12000 | 7.60% |
| 20000 | 7.20% |
| 6000 | 4.10% |
| 25000 | 2.50% |
| 30000 | 1.60% |
| 35000 | 0.10% |
| Term Length | |
| 35 | 42.10% |
| 23 | 29.80% |
| 47 | 26.20% |
| 17 | 1.70% |
| 11 | 0.20% |
https://www.bvrla.co.uk/resource/addressing-the-gaps-in-public-ev-charging.html
https://transportandenergy.com/2025/02/04/closing-the-gap-scaling-ev-charging-infrastructure-for-a-sustainable-future/
