1. Do Your Research
Knowledge is power. It’s a mistake to arrive at a car lot without first researching the car you want to buy. You can find out just about anything you want to know about the Israel automotive market online. Look to Yahoo! Groups and recent immigrant forums (Nefesh B’Nefesh) on Facebook for advice; cars you might buy abroad might not be right for your needs in Israel. For example, large minivans or SUVs in the United States would prove to be a nightmare to park in any major Israeli city and are very expensive on the road. The cars that constitute the Israeli car market largely come from Europe, so look to European auto guides such as Autocar, Evo, or Whatcar? to get a better idea of the technical specifications of cars you might be interested in. Some things to be aware of are engine size, fuel economy numbers, reliability estimates, and performance. It’s worth noting that smaller engine sizes tend to be more practical in Israel.
When interacting with dealership salesmen, be mindful that they will promote their own brand over any other, regardless of whether or not that brand of car is right for you. One benefit to using an agent such as Zvi Cars is impartial advice and guidance combined with years of experience in the Israeli automotive market. Sometimes choosing the right model could save you thousands of shekels per year in running costs and might spare you the cost of switching models completely, as is oft the case with new immigrants.
2. Financing – How and With What
As you have discovered by now, cars are expensive in Israel because they are subjected to 100% VAT. Many people obtain financing, but this isn’t especially feasible for new immigrants with no credit history in Israel. As a new immigrant (over 6 months into absorption), the finance company might lend you up to 100% of the value of the car, payable over three to six years. The interest is typically around 7%, but it’s worth checking with your financier to see if they will offer you a lower rate.
3. Discounts and Incentives
In our previous article, we discussed using your Oleh Rights to obtain discounts up to 12% off the list price of a new car. However, buying with Oleh Rights adds restrictions that can make ownership prohibitive.
There is a popular trend among Israelis to buy new cars from leasing companies because the savings are similar to that of what a Oleh can get but without the restrictions. Paul Morris bought the Kia C’eed, and with our guidance, saved 25,000 shekels under asking price from the dealer.
Kia Ceed, dealer price ₪ 133, Paul paid ₪108,000
Yours for only ₪1,500 per month
Call for more information 02 991 3115