Spoilt for Choice: How to Pick a Business Vehicle When There Are Over 70 Brands

More brands, more electric models and more discounts than ever. Here is how to cut through it

If choosing a company car or van has started to feel harder than it used to, you are not imagining it. Auto Trader's latest market research, presented at the BVRLA Leasing Broker Conference this month, puts some numbers on how much choice there now is.

The market in numbers

• There are now more than 70 car brands in the UK, up from around 45 in 2019.
• A new car launches roughly every nine to ten days.
• The average buyer considers around 17 brands before deciding.
• The price gap between petrol and electric cars has narrowed, from about 21% last year to about 14%.
• The number of electric cars priced under £30,000 has doubled.
• Brand loyalty is slipping. Established brands used to keep around 40% to 50% of their drivers at renewal, and that is now closer to 36%, and about 21% for electric drivers.

For a business, more choice is mostly good news. More competition tends to mean sharper pricing, and manufacturers are discounting electric models heavily as they work towards their zero emission vehicle targets. The difficulty is knowing which of those deals is actually right for you.

Start with the job, not the badge

When there are 17 brands on the shortlist, it is easy to start with what looks good. A better starting point is what the vehicle needs to do. How many miles will it cover each year? Does it need to carry people, tools or stock? Will the driver be able to charge at home or at work? Answer those first and the list shrinks quickly.

Compare the whole cost, not just the monthly rental

Two quotes with similar monthly rentals can end up costing quite different amounts once you look at the initial rental, any fees, the mileage allowance and what you are charged for going over it. For company cars, the tax the driver pays matters as well, and electric cars currently have a big advantage there. Lay everything out side by side before you decide.

Let the quotes show you the difference

Your monthly rental is based partly on what the funder expects the vehicle to be worth at the end of the contract. Funders do not share those figures with brokers or customers, but you can see the effect of them in the price. Some models and brands hold their value better than others, and newer brands do not all have the same track record, which is why two cars with similar list prices can lease for very different monthly amounts. The simplest way to find out is to get your broker to run the quotes.

Watch out for special offers, and check the timing

With so much choice and so much discounting, funders sometimes run special offers on a batch of vehicles, or have cars that have already been ordered or pre-registered and need to go out quickly. These can be very good deals. The catch is that they usually need to be delivered within a set timescale, so they will not suit everyone. If your current vehicle is on contract for a set period, taking one of these early can mean ending your existing agreement before it is due, and that has a cost of its own. A good offer is only a good offer if the dates work for you, so check the delivery window before you get attached to the price.

Do not just renew with the same brand

The loyalty figures above suggest a lot of drivers are moving brand at renewal, and they are probably right to look around. If you are coming to the end of a contract, treat it as a chance to compare the market. A like-for-like replacement is not always the best deal, particularly now that the cost gap with electric has narrowed.

Where an independent broker helps

We are Kinetic Vehicle Leasing, an independent broker working with businesses. We are not tied to one manufacturer or one funder, so we can compare quotes from our funder panel and tell you what we think rather than what a single brand wants to sell. We are BVRLA registered, and we are required to tell you how much commission we are paid. That is set out in our Commission Disclosure and Consent form, which you sign before you order anything.

More people are also starting their research with AI tools, and that is fine as a way to get a shortlist. Auto Trader's research suggests people trust the answers less than traditional search though, and trust in whoever you buy from matters more as a result. Whoever you deal with, check who they are, and our blog on how to check a leasing broker is legitimate is a good place to start.

The short version

• Decide what the vehicle needs to do before you look at brands.
• Compare the full cost, not only the monthly rental.
• Get the same vehicle quoted by more than one funder and compare.
• Check the delivery timescale on any special offer, so it fits with your current contract.
• Treat a renewal as a chance to compare, not a formality.
• Use someone who is independent, open about how they are paid and easy to reach.