Who is eligible for the discount?
- The discount for purchasing a new car is provided only to new immigrants with driving experience in their country of origin. Even minimal experience, confirmed by a driver’s license, is a mandatory requirement. However, owning a car in the country of origin is not required.
- The State of Israel provides benefits for new immigrants to ease their adaptation. However, the right to the discount is limited to three years from the date of immigration, as stated in the Teudat Oleh, until the customs clearance of the car.
- If the benefit period is nearing its end, there is a risk of losing it due to long waiting times for cars and delivery schedules. Even after the car arrives in Israel, time is required for customs clearance. In some cases, the benefit period can be restored, but this is a complex process available only in specific situations.
Features of selling a car purchased with a discount:
- Selling a car purchased using the benefit is possible but comes with several restrictions. For example, when selling, it is necessary to clarify the remaining unused discount and pay it to the state. Additionally, the car can be sold to another new immigrant who has not yet used their benefit. The restriction period for selling is four years, but for cheaper cars, this period may be reduced.
- After the restriction period ends, it is necessary to visit customs to remove the restrictions.
Car insurance:
If the car is purchased with personal funds, only “Hova” insurance, which covers damage to life and health, is mandatory. Operating a car without this insurance is prohibited. Additionally, it is recommended to purchase “Tzad Gimel” insurance (third-party damage) and “Makif” insurance (comprehensive coverage), especially if the car is purchased on credit.
Who can use the car?
The right to use the car is granted only to the owner, their spouse, and adult children living at the same address. Transferring the car to third parties is illegal and may result in the cancellation of the benefit.
The discount for new immigrants is a targeted benefit provided to ease adaptation in Israel. It is intended exclusively for personal use and cannot be transferred to third parties without returning the benefit to the state.
