Tips for purchasing a car in Israel


When buying any car in Israel, one has to be careful. When buying a used car, one should be exceptionally careful. On this page you will find a list of the minimum requirements to guarantee a positive outcome when purchasing a car in good condition and most importantly, a car with no legal problems.

These recommendations are based on experience and legal expertise. Be aware that this list cannot completely guard you against car fraud or other problems. 
Step One: Making the Right Decision
Decide on the type of car that you want to buy based on your real needs. Do not be influenced by the seller.
Some of your considerations should include:
  • How many years do you plan on keeping the car?
  • How many people will be regular passengers?
  • What is the cost of insuring the car?
  • What is the cost of the annual registration fee?
Step Two: The Price
The list price of a used car can be found on the price list put out by Yitzchak Levy. These prices are only a recommendation and there you are under no obligation to accept then. The price is based, among other things, on the mileage, age of the car, the amount of previous owners, accidents, etc.
All these factors are converted into a percentage of the original price of the car and can be found on a separate page in Levy`s price list. Please note: There are many cases in which there is a considerable gap between the value of the car in the open market and the price quoted on Yitzchak Levy`s price list.
Step Three: The Parties Involved
The seller should be the legal owner of the car. This can be checked by asking for his Teudat Zehut (Identity Card). If he is not the same person but only a proxy (authorized agent), you must check on his power of attorney which authorizes him to sell the car in the owner’s name. If this is the case, it is important to find out what the relationship is between him and the owner. It is always preferable to meet the actual owner of the car to verify that he really does want to sell the car.
Step Four: The Car Involved
Don`t be afraid to spend money to have the car properly inspected. There are authorized "car institutes" in all major cities. A list is available at: https://www.mycar.co.il/test/list/.
If there is a discrepancy between what is written on the car license and what is found by the institute, DO NOT BUY THE CAR!
Step Five: The Car and Its Legal Aspects
Transfer of ownership is done in any post office branches around the country or at the Ministry of Transportation. Details can be found at the Ministry`s site: https://portal.mot.gov.il/misrad.asp?IfSubmit=1&MeydaDrop=7
In order to obtain information from the Ministry of Transpiration regarding a car, you must have in your possession the owner`s ID and power of attorney, your ID and the papers of the car.
Please note; if there is any legal problem involved in the transfer of ownership, it will not be possible to complete the transaction at the post office. In addition, you cannot completely rely on the information given at the post office concerning legal aspects of the car. Although the best place to receive this information is from the Ministry of Transportation, even there, crucial information may not be available. In case of doubt, especially when buying an expensive car, we strongly recommend consulting with a professional legal expert.
Step Six: Payment and Transfer of Ownership
Before paying the full amount (you will be requested to pay in cash), sign a short agreement/contract stating, at minimum, the points noted below:
  • The exact date and hour you received the car
  • The mileage
  • The price
  • Address and ID numbers of parties involved. Make a copy of the ID.
  • The general condition of the car
  • A statement if the car chassis was damaged (in this case, a different procedure for buying the car is involved, please consult an expert)
The obligation of the transfer is on the seller and he is the one required to pay any outstanding fees. Even so, it is very important to go together with the seller and finalize the transfer together.
Keep a copy of this agreement/contract and all documents of the purchase, including the documentation from the Car Institute.
Step Seven: The Insurance
The moment the transaction is finalized, the insurance previously issued for this car is automatically canceled. Call any insurance agent. In most cases, insurance can be issued over the phone (using a credit card) in just a few minutes.
No person can transfer or sell the existing insurance without a written and specific consent of the insurer (not the insurance agent).
Step Eight: General Precautions
Look for Forged Papers (almost impossible to recognize). Use common sense.
Do not purchase a car from a seller if all you have is his mobile phone number. Obtain his ID number, home phone number and address.
If the car you are purchasing was recently purchased by the seller himself – be careful, something could be wrong.
If the car looks much "older or used" than the mileage shown, be careful, something could be wrong.
Step Nine: Enjoy!
Now that you are the proud owner of your own car, remember how dangerous the roads in Israel are. Drive safely and Mazal Tov!
Step Ten:
Remember! The above is not a contract or legal advice per se. It is just suggestions based on my experience in the field.