The state of public transportation in Israel does not allow many, unfortunately, to give up daily travel in a private car, and the car sector is only getting more expensive.
In 2022, the new vehicles became more expensive due to a shortage of chips and production problems following the Russia-Ukraine war.
As a result, second-hand cars, car insurance and fuel have become more expensive.
This year, car insurance is expected to become more expensive again, and starting January 1 another blow to the pocket is expected, when, ironically, a tax will be applied to the purchase of electric vehicles, which are more fuel efficient.
By the way, if you were wondering, those who will not have to worry about this financial problem are the ministers who are expected to be appointed to the new government, since the vehicles offered for their choice are hybrid vehicles.
The Israeli electricity grid will not be able to supply energy.
Electric vehicle, photo: Yehoshua Yosef
Mi-Ron Levy, VP of the Levy Yitzhak Group's automotive department, commented on the issue of prices and said that "Our price list, which is expected to be released this January, indicates price drops that are reflected in most vehicle categories, especially vehicles that cost more than NIS 150,000.
Despite this, there are still vehicles in which certain models continue to be in demand, for example, the mini models, super mini, models with seven seats, and the jeeps.
There we still see a lot of demand, so the prices remain static."
Because of the tax change
However, Levy says that "there are many price increases for the new vehicles. Most importers have raised prices, for example: Toyota, Lexus, Mercedes and Mitsubishi. There are other importers who are going to raise prices during January and will publish new prices at the beginning of the year.
"The increase is quite high because of the issue of the tax change, which is not yet certain to come into effect in the field of electric vehicles, and there are still price increases that we see in the models I mentioned. In cases where the price increases are high, there are also increases in used ones, usually in the first two years. The price increases are due to the production of vehicles A car in a small quantity. Manufacturers in the world still have not recovered and are unable to reach the quantities they produced before the Corona period and the war in Ukraine."
Referring to the electric vehicles, he said that "some importers will decide to raise the price of the electric vehicle, some will make it more expensive during the year 2022 and some are still standing on the fence and don't know whether to make the vehicle more expensive due to a lack of inventory."
Shai Feldman, CEO of Samlat, referred to the car market and said that "2022 was still characterized by a shortage.
The demands were higher than what the market was able to offer.
That is why there is a decrease in the industry of 10% compared to 2021 in the car market.
At the same time, we see an improvement in vehicle production and we believe that towards the end of 2023 we will see an almost complete return to the production lines we saw and knew before the corona virus."
There is still a shortage
Tal Bar Lev, CEO of Shlomo Car Sales, referred to zero kilometer and second hand vehicles and said: "Currently there is still a lack of new vehicles, and of course when there are no new vehicles this has an effect.
We are still in crisis, including in vehicles with zero kilometers.
The average models became more expensive by up to 5%, and the ones in demand became more expensive by 5% to 10%.
Unique vehicles that are hard to get became more expensive by more than 10%."
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