The cork has come loose: these are the new car price groups
The Finance Committee today approved the new car price groups, from which car license fees are derived and released the huge inventory cork in ports.
The good news for the citizen: they are higher.
The price to the state: NIS 4.2 million
Keenan Cohen
10/01/2022
Monday, 10 January 2022, 16:30 Updated: 16:38
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After 5 years in which they remained unchanged, the price groups for a new car were updated today.
The update is required in light of the rise in the price of new cars over the past 5 years, most of the increase in the car price index should be noted during 2021 - the crazy bonanza year of new car sales in Israel that ended at an all-time high with over 300,000 new cars.
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Tens of thousands of new cars await at the port of release (Photo: Kobi Liani)
The car price groups are divided into 7 levels, with each such level meaning a different license fee for the vehicle in the licensing test.
Starting with group 1, the price of the fee is NIS 1,226 in jumps of about NIS 300 per step, except for group 6, where the price is NIS 3,355 and group 7, where the price is NIS 4,719 (details of the groups and price ranges below).
In light of the increase in the price of cars, a situation has arisen in which a model that previously belonged to a lower group was "pushed" into a higher licensing fee group due to its increase in price, which created a distortion to the detriment of consumers.
Raising the price range by 5 percent upwards allows the various cars to return to their initial position in terms of licensing groups.
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The boundaries of the new licensing groups compared to the previous ones (Photo: screenshot, screenshot)
The update approved today by the Finance Committee brings to an end a "traffic jam" of tens of thousands of new vehicles that were supposed to hit the roads in the first ten days of 2022, but these could not be registered because until the new groups were approved - importers could not know how much to charge. On the cars.
The Ministry of Transport and the Ministry of Finance did not explain the reason for the delay.
But the delay of the new cars is only one side of the story, among the tens of thousands of their customers there are those who got into a situation where they returned cars that were in leasing contracts that ended or sold their car on the assumption that they could get the new car on time.
Licensing groups determine the vehicle's licensing fee (Photo: Keinan Cohen)
But not only are they finally smiling: the change is also good with the following buyers who, if these adjustments were not made, would pay hundreds of shekels each year due to a distorted classification of their car in the licensing groups.
The price to the state, according to the Treasury estimates brought in the discussions, is a reduction of NIS 4.2 million from the state's revenues from car taxes, but when these stand at NIS 40 billion a year, it will work out.
During the discussion, Bruni Hirman, a representative of the Ministry of Transportation, was asked by the committee's chairman, MK Alex Kushnir, why there is no automatic toll updating mechanism that will allow coordination with the new vehicle price index.
In response, it was said that the ministry is examining the possibility of an automatic pricing mechanism, but this is delayed due to the approval of the Ministry of Justice.
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