The Oleh Vehicle Purchase Benefit (Tofes 5)

What Is This Benefit?

One of the most valuable Aliyah benefits:

ï           Purchase ONE new vehicle with **50% purchase tax **instead of the standard 30-83%

ï           Available within **3 years **of making Aliyah

ï           Can save **₪50,000-200,000+ **depending on vehicle

ï           Separate from import benefit (can use both theoretically)

ï           Called "Tofes 5" (5 טופס) or vehicle purchase benefit

Why it's valuable:

ï           Normal Israeli purchase tax: 30-83% depending on vehicle value

ï           With Oleh benefit: Flat 50% regardless of vehicle value

ï           Makes new vehicles affordable for immigrants

ï           Best value use of Oleh customs benefits

Eligibility Requirements

Who Qualifies?

Eligible statuses:

ï           **Oleh Chadash **(חדש עולה) - New immigrant

ï           **Ezrach Oleh **(עולה אזרח) - Returning Israeli citizen

ï           **Katin Chozer **(חוזר קטין) - Minor returning resident

ï           **Former A-1 visa holders **- If eligible for customs benefits

Timeline Requirements

3-year window:

ï           Must purchase within **3 years from Aliyah date **(as shown on Teudat Oleh)

ï           Vehicle must be delivered AND registered within this timeframe

ï           No extensions except for specific circumstances (see below)

Extensions granted for:

ï           **IDF service **- Time in mandatory military service doesn't count toward 3 years

ï           **University study **- At recognized Israeli university

ï           **Extended travel abroad **- More than 6 consecutive months outside Israel

**Important: **Extensions are NOT automatic - must apply and get approval

Driver's License Requirements

Standard requirement:

ï           Must have Israeli driver's license

ï           Converted from foreign license

ï           Foreign license must have been valid 3+ months before Aliyah

First-year exception:

ï           During first year after Aliyah: Can purchase without Israeli license

ï           MUST commit to converting license within that year

ï           If you fail to convert: Must pay back the tax reduction

ï           After converting: Must present Israeli license to Meches (Customs) as proof

**Bottom line: **Get your Israeli license ASAP (see driver's license conversion guide)

First-Time Benefit Use

One benefit per household:

ï           Only ONE vehicle purchase with this benefit

ï           If married: One benefit for the couple (not one each)

ï           Cannot use benefit twice

ï           Choose wisely!

If you marry after Aliyah:

ï           If both spouses are Olim: Still only ONE benefit for the couple

ï           If one spouse used benefit before marriage: Cannot use again

ï           Coordinate with spouse about timing

How the Oleh Vehicle Tax Works

Tax Calculation Formula

Standard Oleh benefit calculation:

ï           **Purchase tax: **50% of vehicle value (flat rate)

ï           **VAT: **18% on (vehicle value + purchase tax)

Formula:

**1.        **Vehicle base value: ₪X

**2.        **Purchase tax (50%): ₪X × 0.50 = ₪Y

**3.        **Subtotal: ₪X + ₪Y

**4.        **VAT (18%): (₪X + ₪Y) × 0.18 = ₪Z

5.        Total cost: ₪X + ₪Y + ₪Z

Example Calculations (CORRECTED with 18% VAT)

Example 1: ₪100,000 vehicle

**1.        **Vehicle value: ₪100,000

**2.        **Purchase tax (50%): ₪100,000 × 0.50 = ₪50,000

**3.        **Subtotal: ₪100,000 + ₪50,000 = ₪150,000

**4.        **VAT (18%): ₪150,000 × 0.18 = ₪27,000

5.        Total Oleh pays: ₪177,000 Without Oleh benefit (30% tax bracket):

**1.        **Vehicle value: ₪100,000

**2.        **Purchase tax (30%): ₪30,000

**3.        **Subtotal: ₪130,000

**4.        **VAT (18%): ₪23,400

5.        Regular price: ₪153,400

**6.        Wait - Oleh pays MORE? **Yes, for low-value vehicles, Oleh "benefit" is actually worse!

Example 2: ₪180,000 vehicle

**1.        **Vehicle value: ₪180,000

**2.        **Purchase tax (50%): ₪90,000

**3.        **Subtotal: ₪270,000

**4.        **VAT (18%): ₪48,600

5.        Total Oleh pays: ₪318,600 Without Oleh benefit (50% tax bracket):

**1.        **Vehicle value: ₪180,000

**2.        **Purchase tax (50%): ₪90,000

**3.        **Subtotal: ₪270,000

**4.        **VAT (18%): ₪48,600

5.        Regular price: ₪318,600

**6.        Savings: ₪0 **- Same price! This vehicle hits the 50% bracket anyway.

Example 3: ₪250,000 vehicle

**1.        **Vehicle value: ₪250,000

**2.        **Purchase tax (50%): ₪125,000

**3.        **Subtotal: ₪375,000

**4.        **VAT (18%): ₪67,500

5.        Total Oleh pays: ₪442,500 Without Oleh benefit (70% tax bracket):

**1.        **Vehicle value: ₪250,000

**2.        **Purchase tax (70%): ₪175,000

**3.        **Subtotal: ₪425,000

**4.        **VAT (18%): ₪76,500

5.        Regular price: ₪501,500

**6.        SAVINGS: ₪59,000 **- NOW the benefit helps!

Example 4: ₪400,000 vehicle

**1.        **Vehicle value: ₪400,000

**2.        **Purchase tax (50%): ₪200,000

**3.        **Subtotal: ₪600,000

**4.        **VAT (18%): ₪108,000

5.        Total Oleh pays: ₪708,000 Without Oleh benefit (83% tax bracket):

**1.        **Vehicle value: ₪400,000

**2.        **Purchase tax (83%): ₪332,000

**3.        **Subtotal: ₪732,000

**4.        **VAT (18%): ₪131,760

5.        Regular price: ₪863,760

**6.        SAVINGS: ₪155,760 **- Maximum benefit!

Key Insight: When the Benefit Actually Helps

The truth about the 50% Oleh rate:

WORSE than regular for:

ï           Vehicles under ₪165,000 (regular tax is only 30%)

ï           You actually pay MORE with "benefit"

SAME as regular for:

ï           Vehicles ₪165,000-223,000 (regular tax is also 50%)

ï           No savings at all

BETTER than regular for:

ï           Vehicles ₪223,000+ (regular tax jumps to 70-83%)

ï           This is where real savings begin

Maximum benefit:

ï           Highest-value vehicles (₪400,000+)

ï           Regular tax would be 83%

ï           Oleh pays only 50%

ï           Savings of ₪150,000-300,000+

Strategic implication:

ï           If buying expensive car (₪250,000+): USE the benefit - significant savings

ï           If buying cheap car (under ₪200,000): Consider if benefit is worth using (limited/no savings)

ï           You only get ONE use of this benefit - choose wisely!

Electric & Hybrid Vehicles

Special Rules for EVs

Electric vehicles (fully electric):

ï           Do NOT get Oleh benefit

ï           Already have government discount: 45% tax reduction for everyone

ï           Government discount is better than Oleh 50% rate

ï           Ask dealer for exact pricing

Strategy:

ï           Don't "waste" your Oleh benefit on electric vehicle

ï           Buy electric without benefit (everyone gets 45% anyway)

ï           Save Oleh benefit for future gas/hybrid car (if needed)

ï           OR buy expensive gas car with benefit now

Hybrid vehicles:

ï           Also have reduced tax rate: 45% for everyone

ï           Same as electric: everyone gets this discount

ï           Oleh 50% rate is worse than 45% general rate

ï           Don't use Oleh benefit on hybrid

Bottom line:

ï           Electric/hybrid: Buy without Oleh benefit (better rate available to everyone)

ï           Gas vehicles ₪223,000+: Use Oleh benefit (significant savings)

The 4-Year Restriction

Critical Rule: Who Can Drive?

Only these people can drive the vehicle:

ï           The Oleh who purchased with the benefit

ï           The Oleh's spouse

ï           **NO ONE ELSE **without written permission

For additional drivers:

ï           Must get written permission from Customs Authority (Meches)

ï           Each person needs individual approval

ï           Required documents:

◦           Driver's copy of driver's license

◦           Car's registration (Rishuon Rechev)

◦           Driver's Teudat Zehut

ï           Contact: [email protected]

ï           Or visit Customs office in person

Who needs permission:

ï           Children

ï           Parents

ï           Friends

ï           Family members

ï           Anyone other than buyer and spouse

Penalty for violations:

ï           Fines

ï           May have to repay tax benefit

ï           Don't risk it - get permission!

The 4-Year Selling Restriction

Cannot sell for 4 years from purchase date:

ï           Vehicle must stay registered in your name

ï           Cannot transfer ownership

ï           Cannot gift the vehicle

ï           Restriction automatically lifts after 4 years

If you sell before 4 years:

ï           Must repay the tax reduction you received

ï           Amount based on:

◦           Vehicle age

◦           Current value

◦           Original tax reduction

ï           Negates all your savings

ï           Very expensive mistake

How to calculate repayment:

ï           Online form: Customs Authority website

ï           Or email: [email protected]

ï           Meches calculates remaining taxes owed

Exceptions (no repayment required):

ï           Total loss (vehicle destroyed/totaled)

ï           Theft (unrecovered)

ï           Permanent departure from Israel

ï           Death of owner

Passport-to-Passport Sales (The Loophole)

How to sell before 4 years without penalty:

ï           Sell to ANOTHER Oleh who still has benefit eligibility

ï           Called "passport to passport" (לדרכון דרכון)

ï           Buyer uses THEIR benefit

ï           Seller avoids repayment

ï           Win-win situation

Requirements:

ï           Buyer must be within 3 years of Aliyah

ï           Buyer hasn't used vehicle benefit yet

ï           Both parties go to Customs Authority together

Process:

1.              Agree on price with buyer (another Oleh)
2.              Check used car prices in Yizchok Levi Car Guide (determines fair value)
3.              Both parties bring to Customs Authority (Meches):

◦                    Both Teudot Oleh

◦                    Both Teudot Zehut

◦                    Seller's car registration

◦                    Seller's purchase documents

4.              Meches determines final value
5.              Meches may assess additional taxes (rare but possible)
6.              Get clearance document from Meches
7.              Both go to Misrad Harishui (Licensing Bureau)
8.              Wait for electronic confirmation from Meches (may take days)
9.              Transfer ownership at Misrad Harishui
10.       Bring: passports, IDs, Teudot Oleh, Meches document, car registration
11.       New 4-year restriction starts for buyer

No appointment needed at Customs, but:

ï           Check hours before going

ï           Process can take several visits

ï           Be patient with bureaucracy

Pricing in passport-to-passport:

ï           Price is WITHOUT Oleh discount

ï           Check current market value

ï           Seller can't "transfer" their discount

ï           Buyer gets NEW discount on agreed price

How to Buy a New Car with Oleh Benefit

Step-by-Step Process

Step 1: Get your Israeli driver's license

ï           FIRST PRIORITY (see driver's license conversion guide)

ï           Can take 3-6 months

ï           During year 1: Can buy without it, but must get it soon after

Step 2: Research vehicles

ï           Visit dealerships

ï           Test drive options

ï           Check prices

ï           Compare makes/models

ï           Consider total cost of ownership (insurance, fuel, maintenance)

Step 3: Choose your vehicle

ï           New vehicle only (not used)

ï           From authorized dealer

ï           Any make/model available in Israel

ï           Consider resale value

Step 4: Gather required documents Personal documents:

ï           Teudat Oleh (עולה תעודת) - original

ï           Teudat Zehut (זהות תעודת) - Israeli ID

ï           Foreign passport with Aliyah visa

ï           Israeli passport (if you have one)

ï           Israeli driver's license (or commitment to get within year 1)

ï           Original foreign driver's license (valid 3+ months before Aliyah)

Step 5: Visit dealership with documents

ï           Present all documents to dealer

ï           Dealer verifies eligibility

ï           Dealer submits application to Meches (Customs)

Step 6: Dealer processes Tofes 5

ï           Dealer handles paperwork (not you)

ï           Application to Customs Authority

ï           Verification of your Oleh status

ï           Confirmation of benefit eligibility

ï           Processing time: 1-4 weeks typically

Step 7: Wait for approval

ï           Customs reviews application

ï           Checks eligibility

ï           Verifies you haven't used benefit before

ï           Confirms within 3-year window

ï           Approval or denial issued

Step 8: Order vehicle (after approval)

ï           Finalize specs and options

ï           Pay deposit

ï           Sign purchase contract

ï           Delivery timeline: 3-12 months currently (varies by model)

Step 9: Arrange financing (if needed)

ï           Bank loan

ï           Dealer financing

ï           Payment plan

ï           Down payment typically 10-30%

Step 10: Wait for delivery

ï           Stay in contact with dealer

ï           Prepare insurance

ï           Prepare final payment

ï           Delivery: 3-12 months from order

Step 11: Take delivery

ï           Inspect vehicle thoroughly

ï           Test all features

ï           Sign final documents

ï           Dealer registers vehicle

ï           Receive temporary registration

ï           Get license plates

Step 12: Final registration

ï           Vehicle registered in your name

ï           Permanent registration certificate (Rishuon Rechev) mailed

ï           4-year restriction begins from this date

ï           You can now drive!

Documents Dealer Needs

Bring originals and copies:

ï           Teudat Oleh

ï           Teudat Zehut

ï           Foreign passport with Aliyah visa

ï           Israeli passport (if applicable)

ï           Israeli driver's license (or commitment letter if year 1)

ï           Foreign driver's license (original)

ï           Proof of address (utility bill, lease)

Buying a Used Car in Israel

Without Using Oleh Benefit

**Important: **Used car purchases do NOT use Oleh benefit

ï           Can only use benefit on NEW vehicles from dealers

ï           Buying used preserves your benefit

ï           Can still use benefit later (within 3 years)

Used Car Purchase Process

Step 1: Find a car

ï           Yad2 (2 יד) - www.yad2.co.il (largest site)

ï           Private sellers

ï           Used car dealerships

ï           Car lots (חניונים)

Step 2: Research fair price

ï           Check comparable vehicles on Yad2

ï           Yizchok Levi Car Guide

ï           Understand market value

ï           Factor in year, mileage, condition

Step 3: Inspect vehicle

ï           Test drive thoroughly

ï           Take to independent mechanic (₪300-500)

ï           Check history on Ministry of Transport website

ï           Review test (טסט) results

ï           Verify no liens or restrictions

Step 4: Negotiate price

ï           Start lower than asking

ï           Use inspection findings as leverage

ï           Settle on fair price

ï           Get agreement in writing

Step 5: Transfer ownership Option A: At Post Office (דואר)

ï           Go together with seller

ï           Bring:

◦           Both IDs (Teudat Zehut)

◦           Car registration (Rishuon Rechev)

◦           Seller must bring registration in their name

ï           Fill out transfer forms (available there)

ï           Pay transfer fee: **₪235 **(buyer's responsibility)

ï           Payment in cash required at post office

ï           Ownership transferred immediately

Option B: Online Transfer

ï           Both parties log in simultaneously to government portal

ï           Website: www.gov.il

ï           Access through Eizor Ishi (אישי אזור) - personal area

ï           Complete transfer form together

ï           Pay transfer fee: **₪222 **(₪13 cheaper than post office)

ï           Credit card accepted

ï           Confirmation issued electronically

Important notes:

ï           Seller may offer to split transfer fee (negotiate)

ï           Transfer must be official (don't skip this!)

ï           Update insurance immediately after transfer

ï           Keep transfer confirmation

Advantages of Buying Used First

Strategy for new Olim:

ï           Buy used car first year (₪30,000-60,000)

ï           Learn Israeli roads and culture

ï           Figure out what you really need

ï           Save Oleh benefit for later

ï           Within 3 years: Use benefit to buy new car

ï           Sell used car

Benefits:

ï           Immediate transportation

ï           No pressure to use benefit quickly

ï           Lower initial cost

ï           Learn market

ï           Make informed decision later

ï           Still have benefit available

Costs Beyond Purchase Price

Initial Costs

When buying new with Oleh benefit:

ï           Vehicle cost (with 50% tax + 18% VAT)

ï           Registration: ₪170

ï           License plates: ₪120

ï           First year license: Usually included in purchase

ï           Insurance: ₪2,500-15,000/year (before driving off lot)

ï           Dealer prep fees: Often included

When buying used:

ï           Purchase price

ï           Transfer fee: ₪222-235

ï           Insurance: ₪2,000-8,000/year

ï           May need immediate repairs/test

Annual Costs

Every year:

ï           License renewal (Rishuon Rechev): ₪1,500-7,000+ (varies by vehicle)

ï           Insurance: ₪2,500-15,000+ (mandatory Bituach Chova minimum)

ï           Vehicle test (טסט): ₪100 (after year 3)

ï           Maintenance: ₪1,500-5,000

ï           Fuel: ₪6,000-20,000+ (₪6.50-7.50/liter)

ï           Parking: ₪0-18,000 (if monthly parking needed)

ï           Tolls: ₪500-2,000 (Road 6, Carmel Tunnels)

Total annual ownership:

ï           Small car, light use: ₪25,000-35,000/year

ï           Mid-size, average use: ₪35,000-50,000/year

ï           Large/luxury, heavy use: ₪50,000-80,000+/year

Insurance Breakdown

Mandatory:

ï           Bituach Chova (חובה ביטוח) - Third-party liability

ï           Covers injuries to others only

ï           Does NOT cover your vehicle

ï           Does NOT cover property damage to others

ï           Cost: ₪1,500-3,000/year

ï           REQUIRED by law to drive

Highly recommended:

ï           Third-party property damage (מורחב 'ג צד)

ï           Covers damage you cause to others' property

ï           Adds ₪500-1,500 to premium

Optional but common:

ï           Comprehensive (מקיף - Makif)

ï           Covers your vehicle damage, theft, vandalism

ï           All third-party coverage included

ï           Cost: ₪2,500-15,000/year depending on vehicle

Special Situations

Returning Residents (Toshavim Chozrim)

Different rules:

ï           Must have lived abroad 6+ years

ï           Not employed by Israeli company during last 5 years

ï           Can purchase at reduced tax rate

ï           **Different timeline: 9 months **from return (not 3 years)

ï           Vehicle must be manufactured within 48 months prior to import

ï           Need Israeli AND foreign driver's license

**Bottom line: **Tighter restrictions than new Olim

If You Leave Israel During 3-Year Window

Extensions possible if:

ï           You leave for 6+ consecutive months

ï           Time abroad doesn't count toward 3-year window

ï           Remaining eligibility period resumes upon return

How it works:

ï           Made Aliyah: January 1, 2024

ï           Left Israel: July 1, 2024 (6 months after Aliyah)

ï           Stayed abroad: 9 months

ï           Returned: April 1, 2025

ï           Remaining eligibility: 2.5 years from April 1, 2025

ï           New deadline: October 1, 2027 (instead of July 1, 2027)

Must prove:

ï           Duration abroad (passport stamps, entry/exit records)

ï           Original Teudat Oleh

ï           Contact Customs Authority for extension

IDF Service Extension

If drafted during 3-year window:

ï           Military service time doesn't count

ï           3 years of active service (Sadir)

ï           Or 1 year of permanent service (Keva)

ï           Remaining eligibility continues after discharge

Example:

ï           Aliyah: January 1, 2023

ï           Drafted: July 1, 2023 (6 months after)

ï           Discharged: July 1, 2026 (3 years service)

ï           Had 2.5 years remaining eligibility

ï           New deadline: January 1, 2029

University Study Extension

If studying at recognized university:

ï           Study time doesn't count toward 3-year window

ï           Must be enrolled full-time

ï           Must be recognized Israeli institution

ï           Remaining eligibility continues after graduation

Must provide:

ï           Enrollment verification

ï           Academic transcripts

ï           Proof of full-time status

Multiple Vehicles

Can you use benefit more than once?

ï           **NO **- One vehicle benefit per person/household

ï           Used = gone forever

ï           Choose wisely

ï           Cannot "reset" by paying back taxes later

If you need second car:

ï           Buy used without benefit

ï           Or buy new paying full tax

ï           Or passport-to-passport from another Oleh

Common Mistakes to Avoid

Mistake 1: Using Benefit on Low-Value Vehicle

The problem:

ï           Vehicles under ₪200,000: Limited or no savings with benefit

ï           "Wasted" one-time benefit

ï           Could have bought used and saved benefit for later

The fix:

ï           Calculate actual savings before using benefit

ï           Consider buying used first

ï           Save benefit for expensive car later

ï           Think long-term

Mistake 2: Not Getting License First

The problem:

ï           Can't complete purchase without Israeli license (except year 1)

ï           Delays months

ï           Vehicle might not be available later

ï           Rush to get license causes mistakes

The fix:

ï           Get license IMMEDIATELY after Aliyah

ï           Priority #1 before car shopping

ï           Takes 3-6 months - start early

Mistake 3: Selling Before 4 Years

The problem:

ï           Must repay entire tax reduction

ï           ₪50,000-200,000+ payment

ï           Defeats entire purpose

ï           Very expensive

The fix:

ï           Think long-term when choosing vehicle

ï           Buy what you'll keep 4+ years

ï           Consider life changes (kids, job, etc.)

ï           If must sell: passport-to-passport to another Oleh

Mistake 4: Letting Unauthorized People Drive

The problem:

ï           Heavy fines

ï           May trigger repayment requirement

ï           Insurance may not cover accidents

The fix:

ï           Get written permission from Customs for additional drivers

ï           Even for family members

ï           Process is simple - don't skip it

ï           Contact: [email protected]

Mistake 5: Waiting Until Year 3

The problem:

ï           Delivery times: 3-12 months

ï           Risk missing deadline

ï           Limited vehicle availability

ï           Rushed decision

The fix:

ï           Order by end of year 2 at latest

ï           Allow buffer for delays

ï           Don't procrastinate

Mistake 6: Not Reading Contract

The problem:

ï           Surprise fees

ï           Wrong specifications

ï           Unclear delivery timing

ï           No recourse

The fix:

ï           Read every line

ï           Verify delivery date in writing

ï           Confirm all specs correct

ï           Get everything documented

ï           Don't sign until certain

Mistake 7: Using Benefit on Electric/Hybrid

The problem:

ï           Electric/hybrid already have 45% tax (better than 50% Oleh rate)

ï           Wasted benefit

ï           Could have saved it for future gas car

The fix:

ï           Buy electric/hybrid without benefit (everyone gets 45%)

ï           Save Oleh benefit for expensive gas vehicle

ï           Or buy expensive gas car now if that's what you want

Mistake 8: Not Considering Total Cost

The problem:

ï           Focus only on purchase price

ï           Forget insurance, fuel, maintenance, parking

ï           Can't afford to operate expensive car

The fix:

ï           Calculate total annual cost

ï           Insurance quotes BEFORE buying

ï           Factor fuel consumption

ï           Budget for maintenance

ï           Total monthly cost: payment + ₪2,000-4,000 operating costs

Decision Framework

Should You Use the Benefit?

Use benefit if: Buying vehicle ₪223,000+ (significant savings) Plan to keep 4+ years Can afford total ownership costs Need reliable transportation Within 2.5 years of Aliyah (allows delivery time) Have Israeli driver's license (or getting soon)

Don't use benefit / Buy used if: Need car immediately (benefit takes 3-12 months) Buying vehicle under ₪200,000 (minimal savings) Unsure what you need long-term Tight budget (used is cheaper overall) Want flexibility to upgrade soon Close to 3-year deadline (risky)

Smart Strategies by Situation

Just made Aliyah (Months 1-6):

ï           Get driver's license (priority)

ï           Buy used car for now (₪30,000-50,000)

ï           Learn what you need

ï           Save benefit for later

ï           Or research thoroughly if urgent

Settled in (Months 6-24):

ï           Research vehicles thoroughly

ï           Calculate savings on different price points

ï           Order with benefit if buying ₪223,000+

ï           Allow 6-12 months delivery

ï           Best timing window

Late in window (Months 24-36):

ï           Risk missing deadline

ï           Order immediately if decided

ï           Choose fast-delivery models

ï           Or buy used and don't risk it

ï           Safety buffer critical

After 3 years:

ï           Benefit expired

ï           Buy used or new at full price

ï           Or passport-to-passport from another Oleh

Summary: The Reality of the Benefit

The Good News

Significant savings on expensive vehicles:

ï           ₪250,000 car: Save ~₪60,000

ï           ₪350,000 car: Save ~₪115,000

ï           ₪450,000 car: Save ~₪165,000

ï           Makes nice new car affordable

ï           One-time valuable benefit

The Bad News

Not as good as it sounds:

ï           Minimal savings on cheaper vehicles

ï           No savings on ₪165,000-223,000 range

ï           You LOSE money using it on vehicles under ₪165,000

ï           4-year restriction is serious

ï           Can only use once

ï           Electric/hybrid excluded

The Bottom Line

Best use of benefit:

**1.        Buy expensive car (₪250,000+) **if you can afford it and will keep it - maximum savings

**2.        Skip benefit, buy used **if buying cheaper vehicle - save benefit for future

**3.        Think long-term **- you only get one shot at this

Most common strategy:

ï           Buy used first 1-2 years (₪40,000-60,000)

ï           Learn what you need

ï           Use benefit on nice new car when ready (₪250,000-350,000)

ï           Keep it 5-7 years for best value

The numbers don't lie:

ï           Vehicle under ₪165,000: DON'T use benefit (you pay more!)

ï           Vehicle ₪165,000-223,000: No benefit (same price)

ï           Vehicle ₪223,000+: USE benefit (real savings begin)

Contact Information & Resources

Government Agencies

Customs Authority (Meches - מכס):

ï           Email: [email protected]

ï           For: Additional driver permissions, early repayment, questions

ï           Website: www.gov.il/customs

Ministry of Transportation (Misrad Hatachbura):

ï           Hotline: *4515

ï           Website: www.gov.il/transport

ï           For: Vehicle registration, licensing

Nefesh B'Nefesh:

ï           Helpline: *3680 (from Israel)

ï           Email: [email protected]

ï           For: General Oleh benefit guidance

Useful Resources

Yad2 (Used cars): www.yad2.co.il **Yizchok Levi Car Guide: **Price guide for used cars **Ministry of Transport site: **Check vehicle history, liens, test results

Online Transfer

Government portal: www.gov.il **Eizor Ishi (Personal area): **Online ownership transfer

This guide is current as of 2025 with 18% VAT. Tax rates and regulations change. Always verify current requirements with Customs Authority and dealers before making decisions. The information provided is for general guidance only and does not constitute legal or financial advice.

Making the right car decision?

ï           Calculate actual savings for your price range

ï           Consider total cost of ownership

ï           Think 4+ years ahead

ï           Get Israeli license first

ï           Don't rush - one chance to use benefit wisely! Would you like specific information about:

ï           Calculating exact savings for a specific vehicle price?

ï           Used car market recommendations?

ï           Passport-to-passport process details?

ï           Comparing new vs. used strategies?

Updated on: 02/02/2026