Renault is a brand on the up. The recent launches of the Kadjar and Captur crossovers have proved highly successful in both retail and company car markets, helping to bring a much-needed resurgence in popularity for the French firm.
Now it’s time for one of its biggest sellers, the Megane, to make its UK comeback. A grand total of 6.6 million Meganes have been sold in Europe since it was first launched in 1996, 560,000 of which have found homes here in the UK.
When your biggest rivals are the Ford Focus and Vauxhall Astra, stealing a share of the company car limelight can be quite a challenge. However, generous equipment levels and a decent-size boot enable the fourth generation of the Megane hatchback to stand out, and it’s also arguably better looking than its mainstream rivals too, featuring a wide front end and striking new lighting signature.
There’s a choice of six trims. We’ve picked the Megane in mid-range Dynamique S, and there’s a whole host of equipment available for the £20,345 P11D price. Among the highlights are satnav, 17-inch alloys, a reversing camera, dual-zone climate control, upgraded sound system, stylish ambient lighting, automatic lights, and a portrait-style 8.7-inch touchscreen infotainment system.
Interior quality, however, despite a substantial uplift in this latest model, still lags behind the Focus and Peugeot 308 hatchbacks somewhat with a few cheap plastics lurking. Longer and lower than the car it replaces, space up front is plentiful, although legroom is still restricted in the rear.
Engine-wise, there’s a choice of two petrol and two diesels. For the best in terms of running costs, the 1.5-litre diesel is the one to pick with an official combined fuel economy of 74.3mpg and the lowest CO2 emissions of the range at 96g/km, slotting the hatchback into a 19% BIK tax band for the current 2016/17 tax year.
To drive, the Megane is composed and comfortable over long distances, and the smooth diesel offers 110hp plus 260Nm of torque, which proves excellent at cruising speeds, albeit feeling a little underpowered when you want to overtake or gain speeds quickly on the motorway; the 0-62mph sprint officially takes 11.3 seconds, the slowest of the five cars selected here.
Although it’s the newest in our list, disappointingly, SMR and fuel costs are not as competitive as we’d expect, and despite an uplift in residual values over the outgoing model, the Megane still lags a little behind the competition with its 29.6% figure. Whole-life costs of 46.8p better the Focus at 47.6p, though, and are only slightly higher than the Honda Civic’s 45.7p.
Although not class-leading in any of the key cost metrics, the Megane has some key strengths, making it a worthwhile consideration in this overcrowded segment. Its stylish looks and generous equipment levels are among its biggest selling points.
Renault Megane Dynamique S Nav dCi 110 – CPM: 46.8p |
| P11D: £20,345 |
| Power: 110hp |
| Fuel consumption: 76.4mpg |
| CO2 (BIK): 96g/km (19%) |
| BIK 20/40%: £64/£129 |
| Vehicle excise duty: £0 |
| National insurance: £1769 |
| Insurance group/cost: 21/£3210 |
| Warranty: 4yrs/100,000mls |
| Boot space: 434 litres |
RVs: 29.6%/£6025
8.8% uplift over previous generation, but still lags behind most of its main rivals
Fuel costs: £4010
Not the worst of the five but fuel consumption is still quite high
SMR: £1976
SMR is costly, despite the car offering one of the longest service intervals
To read the latest road test of the Renault Megane click here
Ford Focus – CPM 47.6p
Ford’s Focus has been the biggest-selling company car for many years now and it’s not difficult to see why. It’s the Ronseal of the automotive world, and there are few cars that will tick as many boxes.
That said, the new Vauxhall Astra and Renault Megane significantly close the gap on running costs, with both cars achieving better whole-life costs.They’re cheaper than the Focus’s P11D value too.
Hugely practical and accomplished to drive, the Focus’s well-weighted steering and excellent ride quality make it an ideal motorway commuter, plus the 1.5-litre diesel here is smooth and refined. It’s arguably the blandest in terms of the design of the five cars, though, and doesn’t come as well equipped either, missing out on parking sensors and automatic lights and wipers as standard.
Ford Focus 1.5 TDCi Zetec S Nav |
| P11D price £21,540 |
| Vehicle Excise Duty £0 |
| National Insurance £1873 |
| Fuel consumption 74.3mpg |
| CO2 (tax) 99g/km (19%) |
| BIK 20/40% per month £68/£136 |
| Warranty 3yrs/60,000mls |
| Boot space 316 litres |
| Engine size/power 1499cc/118hp |
RVs: 31.0%/£6674
Decent RVs only bettered by the Vauxhall Astra and Honda Civic
Fuel costs: £4123
According to official figures, the Focus is the thirstiest on fuel
SMR: £2072
Disappointing SMR costs make the Focus most expensive here
To read the latest review of the Ford Focus click here
Peugeot 308 – CPM 47.0p
One of the best all-rounders in the segment, the 308 is a practical and stylish hatchback. When coupled with this 1.6-litre diesel, the 308 is the most fuel-efficient too – with a combined economy figure of 91.1mpg, its closest rival, the Astra, achieves 85.6mpg.
Despite the frugality, the 308 is the quickest of the cars here and the only one to complete 0-62mph in less than 10 seconds.
Residual values are disappointing, though, at just 24.9%, which almost completely discounts the fuel gains for overall whole-life costs.
Inside, the 308 hatchback’s minimalist dash design is one of the best in the segment. In Active trim standard kit includes a 9.7-inch touchscreen system and DAB radio, but it’s not as generously equipped as some of its rivals.
Peugeot 308 1.6 BlueHDi Active |
| P11D price £20,725 |
| Vehicle Excise Duty £0 |
| National Insurance £1716 |
| Fuel consumption 91.1mpg |
| CO2 (tax) 82g/km (18%) |
| BIK 20/40% per month £62/£124 |
| Warranty 3yrs/unlimited |
| Boot space 470 litres |
| Engine size/power 1560cc/118hp |
RVs: 24.9%/£5150
Very disappointing figure and far off the competition
Fuel costs: £3363
Best of the bunch for fuel costs due to official combined 91.1mpg figure
SMR: £1588
Not the best for SMR, but still better than the Focus and Megane
To read our review of the 308 hatchback click here
Honda Civic – CPM 45.7p
It doesn’t take the lion’s share of sales in the segment, but the Civic has a lot to offer as an alternative to its mainstream rivals. Distinctive design features like an oddly shaped front end and glass tailgate will divide opinion, but running costs-wise there’s little to argue with as the Civic hatchback is well and truly up there with the competition.
Only the Astra offers better RVs and whole-life costs, despite the Civic being the most expensive of the five.
Practicality has always been one of the Civic’s strongest assets and it offers the biggest boot with 477 litres. Behind the wheel is futuristic and modern and there’s a good use of materials throughout. Equipment is also good with satnav and parking camera plus front and rear sensors among the standard kit.
Honda Civic 1.6i-DTEC SE Plus Navi |
| P11D price £21,695 |
| Vehicle Excise Duty £0 |
| National Insurance £1796 |
| Fuel consumption 78.5mpg |
| CO2 (tax) 94g/km (18%) |
| BIK 20/40% per month £65/£130 |
| Warranty 3yrs/90,000mls |
| Boot space 477 litres |
| Engine size/power 1597cc/118hp |
RVs: 32.0%/£6950
Only the Astra betters the Civic for RVs
Fuel costs: £3902
The Honda sits in the middle of the pack for fuel costs
SMR: £1413
Not the best, but SMR still much lower than the Focus and Megane
To read our review of the Honda Civic click here
Vauxhall Astra – CPM 34.9p
The seventh-generation Astra brought a renewed focus in interior quality and a raft of new technology when it was launched last year. It’s also the cheapest of our list, with the best residual values and lowest whole-life costs.
This 1.6-litre diesel offers some excellent running costs figures too, and thanks to its 200kg weight loss the car feels more nimble on the road. Interior roominess is another plus, although the Astra can’t compete with most of the competition when it comes to boot space.
Value for money is a key strength and there’s plenty of useful kit on offer in this fleet-specific Tech Line trim with satnav, cruise control, LED daytime running lights, an eight-inch colour touchscreen system, automatic lights, DAB radio and Bluetooth all included.
Vauxhall Astra 1.6 CDTi Ecoflex Tech Line |
| P11D price £18,290 |
| Vehicle Excise Duty £0 |
| National Insurance £1514 |
| Fuel consumption 85.6mpg |
| CO2 (tax) 88g/km (18%) |
| BIK 20/40% per month £55/£110 |
| Warranty 3yrs/60,000mls |
| Boot space 370 litres |
| Engine size/power 1598cc/108hp |
RVs: 32.7%/£5975
Vauxhall leads the pack for residual values
Fuel costs: £3579
Just the 308 is cheaper when it comes to fuel costs
SMR: £1352
Longer service interval helps make the Astra the cheapest of our list
To our review of the Vauxhall Astra click here
Best of the rest |
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| Model | P11D | CO2 | CPM |
| Hyundai i30 1.6 CRDi Blue Drive 110 SE Nav | £19,540 | 94g/km | 42.9p |
| Skoda Octavia 1.6 TDi 110 SE Business | £19,595 | 99g/km | 43.3p |
| Mazda 3 1.5d SKYACTIV 105 SE SNav | £19,440 | 99g/km | 43.7p |
| Mini Clubman One 1.5D 116 | £21,320 | 99g/km | 44.0p |
| Seat Leon 1.6 TDi Ecomotive 110 SE Technology | £20,680 | 94g/km | 44.8p |
| Kia Ceed 1.6 CRDi 134 3 6-spd | £20,640 | 99g/km | 45.4p |
| Nissan Pulsar 1.5d 110 N-Connecta | £21,110 | 94g/km | 46.2p |
| Toyota Auris 1.6 D-4D 112 Business Edition | £20,940 | 108g/km | 46.8p |
| Citroen C4 1.6 BlueHDI 120 Flair | £19,895 | 95g/km | 47.6p |
| VW Golf 1.6 TDI 110 Bluemotion | £22,275 | 89g/km | 47.8p |
Related articles:
Cost analysis – Vauxhall Astra
Whole-life costs: The hard sell
