How does a company car work?

06 / 01 / 25

Company car schemes

A company car is one of the most convenient ways to get a vehicle for business and personal use.

If you’re eligible, you’ll be able to order a car online by logging into your account.

1

Browse a range of cars available to you

2

Get quotes based on your car choice list

3

Get your car request approved by your employer

4

Sit back and wait for your car to be delivered

How does a company car work and how much can I spend?

Company car schemes are offered by employers, as a benefit and as part of your role. Your employer will be responsible for the monthly payments, including costs related to maintenance, servicing or MOTs, making it incredibly cost-effective for you.

The amount you can spend on the car depends on the allowance set by your company. Some employers may allow an option to trade up and choose a car of a higher value, with the cost difference then deducted from your salary.  Similarly, some employers may allow you to trade down, choosing a lower cost vehicle, for the cash difference to be put back into your pay packet.

Will I need to pay anything with a company car?

Some company car schemes may have capital contribution where you pay a small amount upfront for the car, and some have private use contributions for private use of the vehicle. All of this, plus any trade up / trade down allowances, will be detailed in your quote when you choose a car online (if they apply).

As with any other workplace benefits you might have, you’ll also need to pay Benefit-in-Kind (BiK) tax. To make it easier to work out your monthly costs, your BiK tax amount will also be shown in your quote. You can find out more about company car tax rates on the Government website.

Benefits of company car schemes

There are so many reasons to choose a company car. Here are the main benefits.

Ready to jump straight in? If your employer already has a company car scheme with Zenith and you're eligible to order. Head over to your account area.

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  • 1

    Low risk and no financial ties

    Your employer is responsible for payments for the car, and you could have no/low monthly costs depending on the scheme and the car you want.

  • 2

    You won’t need to deal with car admin

    One of the best reasons to get a company car is the convenience factor. Company car drivers won’t have to deal with any admin such as setting up motor insurance.

  • 3

    Servicing and maintenance is covered

    You’ll save even more money as any maintenance required on the car is usually paid for and scheduled by your employer.

  • 4

    Company cars can be for personal use

    Company cars are supplied for both business and personal use. You can even drive the vehicle abroad (up to 90 days per year) with the Zenith company car scheme.

  • 5

    Get a new car every few years

    With a company car scheme, you’ll have access to some of the latest car models on the market. This means you can benefit from the best in-vehicle technology and safety features.


Get started

Find out more about how company car schemes work over on our FAQs page. Or learn about our salary sacrifice car scheme for electric and hybrid vehicles instead.

 

Contact us

 
 

Are you eligible for the company car scheme in your organisation? If you're unsure how to login to your employer's website to see our scheme, we can help.

 

*Capital contributions and private use contributions may apply. Monthly payments from your employer do not cover any excess mileage, damages or fines. The employing company has a responsibility to schedule servicing and maintenance appointments, but employees are responsible for general vehicle care and maintenance. Please see your company car policy for full details.

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