Israeli Car Market Flooded With 'Zero Kilometer' Overstock
Translated & summarized from Globes by baba
Israel's new car market is seeing a rise in "zero kilometer" vehicles, which are unsold inventory registered to importers and now offered with discounts of up to 24%. While official registration numbers are high, these vehicles represent aged stock. Discounts are significant, with examples like the BYD SEAL U offering 22,000 shekels off. Experts advise that these deals can be beneficial for immediate buyers or long-term owners, but caution about potential wear from storage and the rapid release of new models, especially from Chinese manufacturers.
The story in 6 lines · by baba
- Israel's new car market is flooded with 'zero kilometer' overstock offered at discounts.
- These vehicles are unsold inventory registered to importers, now marketed openly.
- Discounts on 'zero kilometer' cars range from 8% to 24% off official prices.
- Popular models like BYD SEAL U and Omoda 7 are available with significant price reductions.
- Purchasing these cars can be advantageous for immediate needs or long-term ownership.
- Buyers should consider potential wear from storage and the rapid release of new models.
Israel's new car market is experiencing a surge in "zero kilometer" vehicles, essentially unsold inventory registered to importers after 12 months, which are now being offered at significant discounts. While official figures show a record number of new car registrations, a closer look reveals that many of these are not newly sold cars but rather aged stock. These vehicles, sometimes referred to as "inventory surplus," are officially counted as deliveries but often haven't been driven. Industry estimates suggest around 18,000 such vehicles were registered by importers in the first ten months of 2026, with more expected by year-end. An additional number are registered under private individuals, often employees or associates of the import companies, particularly for premium models.
Importers and leasing companies are now openly marketing these "zero kilometer" cars, a shift from previous practices where they were considered a marketing liability. Discounts range from 8% to 24% off the official list price, with deeper cuts on less popular gasoline models and smaller cars. Even popular electric, hybrid, and plug-in hybrid models are available with discounts, typically around 13%. Examples include the Omoda 7 and Jaco 7 with discounts of 18,000-22,000 shekels, a Chery Tiggo 7 plug-in hybrid at 20,000 shekels off, a Mazda CX5 at 31,000 shekels off, a BYD SEAL U with a 22,000 shekel discount, and a Corolla Hybrid sedan with a 12,000 shekel discount.
Experts suggest that purchasing these vehicles can be worthwhile for those needing a car immediately and who are flexible on color and trim. The substantial discounts can offset the initial depreciation of a new car. For buyers intending to keep the vehicle for over three years, the immediate savings may justify the purchase. However, potential buyers should consider that these cars have been stored for at least ten months in harsh Israeli climate conditions, potentially affecting components like tires and batteries. Additionally, for Chinese models, a new generation might be released soon, accelerating depreciation and negating the initial discount. Buyers should also verify if the official list price, from which the discount is calculated, is the actual selling price, as importers may offer further reductions on new vehicles.