Is it Worth Using Your Oleh Discount to Purchase a Car?

The Problem With ‘Lesser Of Two Evils’ Thinking

If you thought choosing between Trump or Hillary was difficult, wait till you have to decide over which car to buy, which discount to choose and how to pay for it.

An Oleh (new immigrant) receives a discount (off the taxes), up to 12% approx, when purchasing a car. No matter how long you have been living here, the opportunity to save money is enticing. 

To use your Oleh rights, the following restrictions apply:

1) Only two drivers are permitted to drive the vehicle.

2) You have three years to use your Oleh discounts to purchase a car.

3) Four years must elapse from date of purchase before you sell to an Israeli citizen or your heavily penalised.

4) Within four years on owning the car, it can be sold to another Oleh. This is called Passport 2 Passport. 

I am asked daily, what seven seaters I have to offer with Oleh discount. We at Zvi Cars have seen a large drop in sales of P2P cars in recent years. I speculate the reason for this is the following:

1) As other discounts are available (see bellow) there has been a drop in sale of cars purchased using Oleh rights. (It is possible to use two discounts).

2) Most families that own a seven seater, keep it for many years. 

3) An Oleh who is leaving the country and wants to sell his vehicle expects top Dollar for it and the discount he is offering in not substantial. 

As you might of heard, new cars are three times the price in Israel than they are in America. Did you know that used cars, especially seven seaters, hold their prices extremely well. As opposed to Chutz L’eretz, where seven seaters are seen as undesirable and devalue more. This makes looking for used seven seater very difficult. Another question I get asked frequently, What good deals can you offer me on a family seven seater? “No such thing”. We respectfully reply. Of course, on European cars, you will often find 30% off book price but that is not surprising as most people who know cars, know that Japanese cars are built to last and are most coveted.

Verdict

Finding comparative flaws with your political opposition is the easier than buying a car in Israel. If we elect the most powerful man in the world because he is “not-Hillary” are we any worse off with, lesser-of-two-evils in choosing a car? Only time will tell if we have chosen correctly. G-d Bless America and your next car.

2017, 0 km, NEW CARS AT DISCOUNTED PRICES (without Olim Reduction):

7 seats

Mitsabushi Outlander, dealer price ₪175,₪160,000

Toyota Verso, dealer price ₪161, ₪145,000

Toyota Prius Plus 2. dealer price ₪173,₪160,000

5 Seats

Kia Sportage dealer price 185, 2.0, you pay 166,000 

Kia Ceed, dealer price ₪133, you pay ₪108,000 

Mazda 3, dealer price ₪131, you pay ₪112,000 

Kia Rio 2016 dealer price ₪109,1.4, you pay ₪ 90,000

Mazda 2, dealer price ₪108, you pay ₪ 99,000

Hyundai  i10 Supreme, dealer price ₪ ?, you pay ₪ 77,000

Hyundai  i20 dealer price ₪ 106, you pay ₪ 91,500

Hyundai i25 dealer price ₪ 112, you pay ₪ 93,000

Hyundai i35 dealer price ₪ 135, you pay ₪ 118,000

Toyota Yaris, dealer price ₪ 104, you pay ₪ 93,000 1.3 Sol

Kia Picanto dealer price ₪ 82, you pay ₪ 71,000

Nissan Juke 1.6. dealer price ₪ 132, you pay 113,000

Ford Fiesta .1.6, dealer price 101, you pay ₪ 86,000

Hyundai Touson 2.0 dealer price ₪ 163, you pay ₪ 149,000

Hyundai Touson 1.6 dealer price ₪ 147, you pay ₪ 138,000

Visit http://www.zvicars.com for a complete list of new cars available.

Visit our website at http://www.zvicars.com to view additional incentives beyond the 12% when you buy P2P, or call us to explore your options for a car at (972) 02-991-3115.

For more helpful hints on buying a car in Israel, visit these articles now:

Call for details on finance options, warranty, for cars for sale with your Oleh rights, new & used cars. 

ZVICARS.com

Sales, insurance & rentals 

Office:  02 991 3115  

Mobile: 054 591 5115

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What seven seater?

Jeremy Clarkson (popular English car journalist formerly Top Gear presenter) jokes, life is over once you purchase a minivan. If a car is an extension of ones clothes, then it may appear he has a point. BMW, Ferrari and Porsche make sport cars that are a thing of beauty, not seven seaters. But, most that read this article have large families and therefore need a vehicle that can move them around. The high cost of new cars in Israel makes, for most of us, buying a one, out of our range. That’s why minivans perform so well in the used market, often selling higher than book price.

As the adage goes, it’s not the size that counts, well with automobiles it is the seats that count, ‘car-sales man’ are bereft with the requests for 9, 10 and even 11 seaters. The king of the road is ho who has the most seats, and anyone who lives in Israel and has more than three kids can’t help but desire the minivan.

Because of the Mazda 5’s Rock solid build quality, it is Israel’s most popular seven seater. But it isn’t fuel efficient as a Toyota Verso or Mitsabushi Outlander, which we prefer. For moving your family, Toyota Siena is almost a flawless minivan, sure it is held in higher regard, especially for those that come from the USA. Both Ford SMax and Galexy are desirable and fairly reliable. Post 2012 models had fewer problems. Nissan Qashqai +2 is a very accomplished car but because they cost more than the other mentioned her, there are fewer on the used market. The Verso and the Outlander are the only seven seaters that are currently being made that have no known issues and are fairly affordable. A 2014 Verso starts around NIS 90,000 while an Outlander will set you back NIS 115,000. Being very fuel efficient as these are, don’t be alarmed if they have been driven a lot. 25,000 km per year is normal for Israel and doesn’t do any harm to such a well made vehicle.

The Outlander may have seven seats but only children can sit in the back row. The trunk isn’t huge, 308-litre, only 22 more than the Mazda 5. Lots of pockets and cup holders that makes the cabin a nice place to be in.

Verdict

The Mitsabushi Outlander tops our list of recommended minivans for 2013 till 2017. This practical and luxurious Minivan is roomy enough for most families, with enough space to comfortably seat seven people. And it doesn’t drives like a van either – the Outlander is responsive and comfortable to drive, with very little body roll, it does feels like a quality car. The new cool is a daddy that has a SUV seven seater.

Call for details on finance options, warranty, use of your Oleh rights, new & used cars.

ZVICARS.com

Car Purchase in a Safe Environment

Office: 02 991 3115

Mobile: 054 591 5115

ezra@zvicars.com

For more about cars, please visit:

https://www.zvicars.com/

https://zvicarsblog.wordpress.com/

https://www.facebook.com/groups/buyandselcars/

Electric Vehicles – An Alternative to Petrol

Nowadays there are a multitude of engines and fuel sources for our vehicles. Each has their upsides and downsides. This article is meant to be a reference in helping you choose the best powertrain/energy source for your lifestyle. Today, we discuss the merits and drawbacks of Electric.

Electric Vehicles:

Taking the hybrid concept a step further, electric vehicles (EVs) use no fuel and produce no emissions, although some posit production requires more energy and natural resources to make EV components compared to a normal petrol engine. Running costs are minimal. As with hybrids, driving style and environment can significantly impact EV range and performance. Driving aggressively quickly drains an EV’s batteries, as do hills or mountains, while heat or hot climates can degrade storage capacity. As such, EVs are most optimal for individuals who have easy access to vehicle charge ports and do a lot of their driving in cities or have shorter commutes. On the plus side, because EVs have far fewer moving parts than cars with internal combustion engines, they tend to have stellar reliability, with longevity only limited by battery condition.

EVs aren’t all that established in Israel. The most established line of EVs is the Renault Fluence ZE, produced by a company called Better Place in conjunction with Renault. It should be noted that Better Place is no longer in business; it is no longer possible to buy a new model, and all pre-owned model upkeep and maintenance will be performed by Renault. The Fluence ZE is very economical to drive and cheap to insure, as most EVs are, but range is limited to 100 kilometers per charge – perfect for city or suburban commutes, not so great for long highway trips. Charging EVs can actually be accomplished right outside your house, and in the case of the Fluence ZE, one can have a charger built inside your garage for a fee.

At present, there are no new EVs on sale in Israel. If you are really set on an EV, an alternative is a plug-in hybrid such as the Mitsubishi Outlander. Consisting of an electric motor, battery, and a petrol engine, these vehicles have an electric-only range of between 32 – 64 kilometers before the petrol motor kicks in to recharge the onboard batteries. In the case of the Mitsubishi Outlander plug-in hybrid, electric-only range is rated at 52 kilometers. This class of vehicle perfectly bridges the gap between hybrids and EVs. Efficient, practical, cheap to run, and without the anxiety of range restrictions, plug-in hybrids should make your short list of cars to consider.


Visit our website at www.zvicars.com to view additional incentives beyond the 12% when you buy P2P, or call us to explore your options for a car at (972) 02-991-3115. For those interested in researching the car buying process in Israel, check out our ‘How to Buy a Car’ page at www.zvicarsblog.wordpress.com

Efficient Alternatives to Petrol – Part Two

Nowadays there are a multitude of engines and fuel sources for our vehicles. Each has their upsides and downsides. This article is meant to be a reference in helping you choose the best powertrain/energy source for your lifestyle. Today, we discuss the merits and drawbacks of hybrid cars.

Hybrids

Hybrids are a great choice for the environment. They produce less carbon dioxide emissions, and are very efficient, particularly in city driving – even beating out diesels in urban environments that feature a lot of stop and go traffic. If your lifestyle involves significantly more city driving than highway driving, a hybrid might very well be the car for you. It needs to be said, however, that how one drives a hybrid has a large effect on efficiency. Really pushing a hybrid powertrain quickly drains its battery packs, forcing the engine to kick in and work hard, which burns more petrol.

 

In Israel, there is not much diversity in the hybrid segment; our market features either iterations of the Toyota Prius or the Honda Insight. In general, the Toyotas are mechanically excellent and employ advanced technology, but are expensive to repair whereas the Hondas are cheap to repair but make use of more basic technology. If you’re looking for a hybrid to transport more than 5 people in Israel, your sole option is essentially the Toyota Prius +, but that’s not a bad thing! Not is it the same price as the Mazda 5, another 7-seater, it uses half as much fuel, and Prius buyers are eligible for government subsidies. In addition, discounts on the Prius + may be found on zvicars.com*.


Visit our website at www.zvicars.com to view additional incentives beyond the 12% when you buy P2P, or call us to explore your options for a car at (972) 02-991-3115. For those interested in researching the car buying process in Israel, check out our ‘How to Buy a Car’ page at www.zvicarsblog.wordpress.com

*when available.

Efficient Alternatives to Petrol – Part One

Nowadays there are a multitude of engines and fuel sources for our vehicles. Each has their upsides and downsides. This article is meant to be a reference in helping you choose the best powertrain/energy source for your lifestyle. Today, we discuss the merits and drawbacks of diesel.

Diesel:

Efficiency:

Drop for drop, diesel fuel contains 50% more energy than petroleum. Although typically more expensive than petrol engines, diesel engines achieve higher fuel economy, especially on the highway, than their conventional counterparts. If you plan on keeping your car for many years and your driving involves a significant amount of highway commuting, then a diesel engine should make your short list. A real world example would be the VW Golf TDI, which achieves 18.6L/km on the highway – just a hair short of a comparable hybrid.

Driving Characteristics:

Diesel engines produce much more torque (the force that throws you back into your seat when you accelerate – than petrol powertrains). This is a boon when driving in the city, where glass-smooth pull can really help you fill holes in traffic. On the whole, however, diesel engines produce less horsepower, and are slower to 100 KPH than petrols. Its important to note that diesels tend to not be as refined as petrol offerings; more vibrations pass through the cabin, especially at idle.

Reliability:

In theory, diesel powertrains tend to be more durable than petrol engines. Unfortunately, in practice – in Israel – gas stations and garages  often water down their diesel supply which drastically reduces the life of the engine compared to petrol and can be expensive to repair. Regarding emissions: manufacturers have many different ways of meeting countries’ emissions requirements. The most common involves spraying a diesel exhaust fluid catalyst into a vehicle’s exhaust flow. This fluid, know as DEF or ADBLU, needs to be refilled every several thousand kilometers in order to for your diesel vehicle to be emission-compliant. Mercedes-Benz in particular are known for their line of very reliable, very efficient diesel engines.

In the next installment, we will discuss the pros and cons of hybrids, and their presence in the Israeli market.


Visit our website at www.zvicars.com to view additional incentives beyond the 12% when you buy P2P, or call us to explore your options for a car at (972) 02-991-3115. For those interested in researching the car buying process in Israel, check out our ‘How to Buy a Car’ page at www.zvicarsblog.wordpress.com

NEW CAR BUYING TIPS

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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

Kia Ceed

Yours for only ₪1,500 per month 

Call for more information 02 991 3115

Passport 2 Passport – Oleh Rights Explained

As a new immigrant you can save money by invoking your Olim rights for new cars.

Passport to Passport is the transaction of a pre-owned car (Yad 2) Olim to Olim, where the seller can pass his or her Oleh discount on to the buyer. New Olim have three years to buy passport to passport from the day they immigrate.

You will save between 8% and 12% off the MSRP/Mechiron value. Passport to Passport transactions hold the following restrictions: 

  • 4 years need to elapse from date of purchase before you sell to an Israeli citizen.
  • Only two drivers are permitted to drive the vehicle.

We recommend you only use your rights for expensive cars such as minivans, executive saloons, and sports cars, where the saving are significant. We can help you save money on most cars without the Olim restrictions.

We are frequently asked if 12% is the maximum allowable discount the government gives. The answer is: the government gives more money to Olim and less discounts on cars than it used to, so deductions do not top 12%


Visit our website at www.zvicars.com to view additional incentives beyond the 12% when you buy P2P, or call us to explore your options for a car at (972) 02-991-3115. For those interested in researching the car buying process in Israel, check out our ‘How to Buy a Car’ page at www.zvicarsblog.wordpress.com