Looking for a new company car? You’re not alone. But what vehicles should you choose and are you eligible for business contract hire?
Business car leasing is an option that’s available to financially eligible sole traders, partnerships and limited companies for their company cars. Although eligibility can vary depending on which company is providing the finance, generally you must meet the following criteria:
- Be a sole trader, partnership, Ltd or PLC;
- Have trading history of at least three years with bank statement and accounts;
- Produce proof of address and proof of ID for the company director;
- Have a good enough rating to pass a credit check.
If you’re business is eligible, a whole new world of hassle-free motoring is open to you. Deals across the market can be compared on Leasing.com, the new car marketplace with the widest choice of offers from brokers, dealers and independent funders.
But what were the most popular business car leasing makes and models in 2018/19? Is diesel still dominant despite recent demonisation?
Looking at Leasing.com enquiry data for the 2018/19 financial year, the typical business car leasing customer is searching for a Mercedes-Benz E-Class on a three-year contract with a three-month initial payment. Does that sound like you?
Perhaps most surprisingly, given the typical image of a mile-munching business man on the road, the most popular lease deal is only for 10k miles per annum. While this is still over the national average, it puts to rest the archaic view of the Mondeo Man going up and down the motorways all over the UK.
Following recent trends in the new car market, diesel is also no longer the preferred option when it comes to fuel for businesses, accounting for 39% of enquiries. Petrol narrowly leads the way with 42%.
The decline in diesel is not as drastic in the leasing market as it is for all new car registrations, indicating that the short-term nature of contract hire means businesses are less likely to ditch diesel if people are only going to be driving the vehicle for the next two to three years.
Hybrid and fully-electric continue to make incremental growth with a 13% and 5% share respectively, with businesses choosing vehicles such as the hybrid BMW 5 Series, Mitsubishi Outlander and Mercedes-Benz C-Class. The most popular fully-electric vehicle is the Jaguar I-Pace.
Mercedes-Benz is leading the way when it comes to business contract hire.
Business car leasing market leaders:
- Land Rover
When it comes to specific models, German vehicles also dominate the list of most popular business lease cars.
Most enquired business lease company cars:
- Mercedes-Benz E-Class
- Mercedes-Benz C-Class
- Range Rover Velar
- BMW 5 Series
- Volkswagen Golf
- Mercedes-Benz A-Class
- Range Rover Sport
- BMW 4 Series
- Volkswagen Tiguan
- Mercedes-Benz CLA-Class