Electric, Hybrid, or Gasoline Cars: What Does It Really Cost to Own One in Israel?

Owning a car in Israel involves significant ongoing expenses that can sometimes exceed the initial purchase price. For example, a gasoline car bought for 150,000 shekels, driven 15,000 kilometers annually and kept for five years, incurs an additional cost of about 152,000 shekels over that period. The largest expense is depreciation, accounting for approximately 71,000 shekels, nearly half of the total cost. Fuel costs amount to around 43,000 shekels, while maintenance and insurance each cost about 14,000 shekels, and licensing fees add another 10,000 shekels.

Comparing electric, hybrid, and gasoline vehicles with the same purchase price and usage profile reveals that electric cars are the most economical but only marginally so. The total cost for a hybrid vehicle is about 136,300 shekels, and for an electric car, 124,600 shekels over five years. The difference between electric and gasoline cars is roughly 27,600 shekels, or about 459 shekels per month. However, electric vehicles experience faster depreciation, especially in the initial years, which reduces their cost advantage. Electric cars save nearly 40,000 shekels in operational costs, including 32,700 shekels on electricity versus fuel and 7,500 shekels on maintenance due to the absence of an internal combustion engine. Yet, an additional 12,700 shekels in depreciation and higher insurance premiums offset these savings.

Hybrid cars strike a balance, reducing fuel consumption by about 25% thanks to their electric motor during stops and city driving, while maintaining depreciation rates similar to gasoline cars. In the tested scenario, hybrids save around 16,000 shekels compared to gasoline vehicles, about 60% of the electric car savings, without the risk of rapid value loss.

Three key factors influence these cost outcomes: the charging mix (home charging is much cheaper than public fast charging), annual mileage (higher mileage increases energy cost impact), and ownership duration (depreciation is heaviest in the first years, so shorter ownership means absorbing more depreciation). Policy changes also affect costs: the reduced licensing fee for electric cars ended, and from 2026 they will pay full fees based on price category. Purchase tax on electric vehicles has risen to 48%, and the maximum subsidy dropped from 30,000 to 22,000 shekels, making the assumption of equal purchase prices for all types less realistic.