Should you buy an M135 if you're a company car?

BMW M135: Company Car Conundrum

03/09/2025

Rating: 4.25 (9525 votes)

The decision of selecting a company car often involves a delicate balance between performance, practicality, and cost. For many businesses, the focus is on reliability and efficiency. However, for those seeking a more engaging driving experience without compromising on luxury or a premium badge, the BMW M135i (now known simply as the M135) presents an intriguing proposition. While BMW is renowned for its rear-wheel-drive M Division performance cars, the landscape of their offerings has evolved, with four-wheel drive becoming increasingly prevalent. The M135, in particular, stands out with its unique character, even within a lineup that often leans towards sporty dynamics. This article delves into whether the BMW M135 is a suitable candidate for a company car, examining its strengths, weaknesses, and overall value for corporate fleets.

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BMW M135: An Overview

The BMW M135 is positioned as the flagship model of the 1 Series range, a compact executive hatchback that aims to blend everyday usability with potent performance. While not a full-blown M car in the traditional sense, it benefits from M Performance enhancements, offering a compelling blend of power, handling, and refinement. The recent update, which saw the model code change from F40 to F70, has brought about several improvements. These revisions address some of the criticisms of the outgoing model, particularly in terms of styling, which some found to be less resolved. The updated chassis and powertrain are designed to enhance its competitiveness against other premium four-wheel-drive hot hatchbacks on the market.

Performance and Driving Dynamics

Under the bonnet, the M135 typically features a potent 2.0-litre turbocharged petrol engine, paired with an eight-speed automatic transmission and BMW's xDrive all-wheel-drive system. This setup delivers brisk acceleration and confident traction in various conditions, making it a capable performer in both urban environments and on winding country roads. While the xDrive system generally biases power towards the rear axle, providing a semblance of traditional BMW RWD feel, the M135's character is distinct. It offers a more neutral and accessible driving experience, which can be a significant advantage for drivers who may not be seasoned performance enthusiasts. The engaging handling is a hallmark of the M135, with precise steering and a well-balanced chassis that inspires confidence.

Is it a Good Car?

Objectively, the BMW M135 is a very good car. It excels in offering a premium interior, advanced technology, and a driving experience that is both exciting and refined. The quality of materials and the overall fit and finish are typical of BMW, contributing to a sense of luxury and durability. The infotainment system is intuitive, and the car is packed with modern safety features. The Euro NCAP safety rating of five stars for the F40 generation further underscores its credentials as a safe vehicle. For those who appreciate a car that can be both a comfortable daily driver and a spirited weekend machine, the M135 certainly delivers.

The Company Car Question: Cost and Value

This is where the M135 faces its biggest challenge as a company car. Starting from around £43,000, it is a significant investment. For businesses, the total cost of ownership is a crucial factor. This includes not only the initial purchase price but also running costs such as fuel consumption, insurance, road tax, and potential depreciation. While the M135 offers a premium experience, its price point places it in direct competition with other executive saloons and SUVs that might offer more space or a different type of prestige.

Cost Comparison: M135 vs. Competitors

To illustrate the financial considerations, let's consider a simplified comparison:

VehicleApproximate Starting Price (UK)Fuel TypePowertrainKey Selling Point for Company Car
BMW M135£43,000Petrol2.0L Turbo Petrol, AWDPerformance, Premium Hatchback
Audi A3 Sportback 40 TFSI quattro S line£37,000Petrol2.0L Turbo Petrol, AWDRefinement, Technology, Slightly Lower Price
Mercedes-Benz A250 4MATIC AMG Line£38,000Petrol2.0L Turbo Petrol, AWDComfort, Interior Luxury, Brand Prestige
Volkswagen Golf R£46,000Petrol2.0L Turbo Petrol, AWDOutright Performance, Hot Hatch Icon

As you can see, the M135 sits at the higher end of the premium hot hatchback segment. While it offers a compelling package, its price tag is a considerable factor for fleet managers. The decision might hinge on whether the specific performance benefits and brand appeal of the M135 outweigh the potentially lower running costs or different advantages offered by its rivals.

Practicality for Business Use

The M135 is a five-door hatchback, which inherently offers a degree of practicality. The boot space is adequate for a compact car, and the rear seats are reasonably accommodating for passengers. However, compared to larger executive saloons or SUVs often chosen for company car fleets, its space might be more limited. For a single user or a small family, it's perfectly functional. But if the vehicle needs to accommodate multiple passengers or significant luggage regularly, other options might be more suitable. The interior quality is undeniably a strong point, providing a comfortable and sophisticated environment for both driver and passengers.

Fuel Efficiency and Emissions

As a performance-oriented petrol car, the M135's fuel efficiency and CO2 emissions will be a key consideration for company car tax (Benefit-in-Kind or BiK). While official figures vary, expect it to be less economical than its less powerful 1 Series counterparts or diesel-engined alternatives. For employees, higher CO2 emissions translate to a higher tax liability. Businesses also need to consider their own sustainability targets and the overall carbon footprint of their fleet. The M135's fuel consumption will likely be in the mid-to-high 30s miles per gallon (MPG) on a combined cycle, with emissions potentially in the region of 170-190 g/km, depending on the exact specification.

Warranty and Reliability

BMW typically offers a three-year warranty with unlimited mileage. This is standard for many manufacturers, but the unlimited mileage aspect is beneficial for high-mileage company car drivers. BMW's reputation for reliability is generally strong, but like any performance car, the M135 may incur higher maintenance costs over its lifespan, particularly if driven hard. Regular servicing, adhering to BMW's recommended schedule, will be crucial to maintaining its performance and longevity. Long-term reliability is something that fleet managers will want to investigate further through owner reviews and professional assessments.

Who is the M135 for as a Company Car?

The BMW M135 is best suited for specific roles within a company car scheme:

  • Executive Choice: For senior employees who value a premium brand and an engaging driving experience, and where the higher cost is justifiable.
  • Sales Roles with Limited Luggage Needs: For representatives who spend much of their time driving alone or with one passenger and whose territory doesn't require extensive equipment transport.
  • Company Car Schemes with Performance Options: Within a broader fleet policy that allows for more performance-oriented vehicles as an option for employees willing to accept the associated costs.

It is likely not the best choice for roles that require maximum practicality, lowest running costs, or the absolute lowest company car tax liability for the employee.

Frequently Asked Questions

Is the BMW M135 a practical company car?

It offers hatchback practicality with four doors and a usable boot, but it's less spacious than larger executive cars or SUVs. It's practical for individuals or small families, but perhaps not for those needing significant cargo space or rear passenger room regularly.

What is the company car tax on a BMW M135?

This depends on the exact list price, CO2 emissions, and the employee's personal tax rate. Given its price and performance-oriented engine, it will likely fall into a higher tax bracket compared to more economical company cars.

Is the M135 more expensive to run than a standard 1 Series?

Yes, significantly. The more powerful engine, performance-focused tuning, and potentially higher fuel consumption will lead to higher running costs across the board.

Does the M135 offer good fuel economy?

For a performance hatchback, its fuel economy is reasonable, but it is not a segment leader in efficiency. Expect mid-to-high 30s MPG combined.

Conclusion

The BMW M135 is undeniably a talented and desirable hot hatchback. Its blend of performance, premium quality, and technology makes it an appealing vehicle. However, when considered as a company car, its relatively high purchase price and associated running costs present significant hurdles. For businesses prioritising cost-effectiveness, low emissions, and maximum practicality, other options within BMW's range or from competing manufacturers might be more suitable. For those companies and employees who specifically desire the engaging driving dynamics and premium appeal of the M135, and for whom the cost is a secondary consideration, it can certainly be a rewarding choice. Ultimately, the decision hinges on aligning the vehicle's attributes with the specific needs and priorities of the business and its drivers.

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