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/

HOW TO BUY A USED CAR IN ISRAEL – PART ONE

Whether you’ve just arrived to Israel, been here for 30 years, or are a first time buyer. Buying a used car is pretty much akin to a poker game. Keep your head, keep your focus and you’ll win. You might have noticed dealers in Israel are not as polite and helpful as abroad. You have also probably felt overwhelmed searching on Yad 2 (Popular national website for buying cars). Here’s a few fail-safe pointers when deciding on a car that we at Zvi Cars feel will aid you.

  1. Leave your ego at home. Cars in Israel often are 200-300% more expensive that they are abroad. In other words, it might be best to stop dreaming about aspirational vehicles or those that would hoist you up the social rung. Bear in mind, the sweet spot in Israel is a reliable people mover that won’t chuck you into overdraft and plaque you with maintenance issues.

    Be practical and sensible; do not buy a model because the dealership is offering a holiday for two or a low interest scheme. Identify a vehicle that suits your needs before subjecting yourself to an onslaught of marketing.

     

  2. Bring your significant other with you! You’ll want them not only to be on board with your purchase, but their opinions could be invaluable.
  3. Find the used car’s true market value at ‘Levi Yitzchak’ also known as Mechiron or blue book. Levi Yitzchak releases a copy of used car price guides every month. You may also check Yad 2, although it is not industry standard. Yad 2 has it’s own price list for advertising on their website. Private sellers often quote the Yad 2 because it is higher. All dealers and insurance companies use Levi Yitzchak. The proper price for a certain used vehicle is not necessarily the one indicated in the Mechiron – this gives you just an average price. It’s ‘guide book’, not a ‘rule book’. The actual value of the vehicle depends on a car’s condition. The price is based on, among other things, mileage, age of the car, number of previous owners, accidents, etc. All these factors are converted into the price the car is worth.

     

  4. Beware of scams and dealers selling substandard cars. The most frequently asked question amongst Israeli car buyers is: “has it been in an accident?” If a car has been damaged in a collision, even if it has been repaired by the manufacturer it could compromise the safety of the vehicle. Expect the price to be discounted by 10 – 50% depending on damaged caused.


    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