Top five BIK-busting city cars

  • Five city cars with ultra-low company car tax
  • All use petrol engines: high MPG, low CO2
  • All have Benefit-in-Kind bills below £25 per month

We’ve driven the new Skoda Citigo this week and if you don’t venture out of the city a lot it makes a fantastic company car thanks to its highly efficient 1.0-litre petrol engine and low P11d value.

It’s inspired us to check out which other city cars are out there that won’t cost a huge amount in company car tax.

1. Toyota Aygo 1.0 VVT-i 3dr

Why buy?

Aimed primarily at younger buyers who spend much of their time in the city, the Aygo is a cheap city car jointly developed with Citroen and Peugeot. It drives and rides pretty well, and the little three-cylinder petrol engine is frugal and feisty.

Fuel economy: 61.4mpg

List price: £8,590

CO2 emissions: 105g/km

BIK cost per month*: £17.18

2. Volkswagen up! 1.0 BlueMotion Technology 3dr

Why buy?

The up! is the Volkswagen Group’s new city car. Although it has spawned a pair of off-shoots from Skoda and SEAT, the VW product is the more refined choice and has a price tag to match. The 1.0-litre petrol engine and BlueMotion technology combine to create some very impressive efficiency statistics.

Fuel economy: 68.9mpg

List price: £9,330

CO2 emissions: 96g/km

BIK cost per month*: £15.55

3. Ford Ka Studio 1.2 3dr

Why buy?

The hugely popular Ka is a distinctive city car that although perhaps slightly more expensive than others in this test is extremely well built and fun to drive. The 1.2-litre petrol engine is a lively little unit and helps the Ka achieve its excellent efficiency statistics.

Fuel economy: 57.7mpg

List price: £8,725

CO2 emissions: 115g/km

BIK cost per month*: £20.36

4. Kia Picanto 1 1.0 3dr

Why buy?

Updated last year, the Picanto is a grown-up and stylish small car with a distinctive front end and the option of three or five doors for extra practicality. It’s bigger than its predecessor and thanks to the buzzy 1.0-litre petrol engine is more frugal too.

Fuel economy: 67.3mpg

List price: £7,795

CO2 emissions: 99g/km

BIK cost per month*: £12.99

5. Suzuki Alto 1.0 SZ2 5dr

Why buy?

Designed to cut costs down as far as they’ll go, the smallest Suzuki is well built while being cheap to insure, tax and fuel. It doesn't have the fun factor associated with others in this test, but there’s a reasonable level of equipment and it feels well screwed together too.

Fuel economy: 64.2mpg

List price: £7,995

CO2 emissions: 103g/km

BIK cost per month*: £14.66


*Company car tax is calculated using the car’s list price with no optional extras, on the 20% pay scale and using the bands for 2012/13 that come into effect on April 1.