Dei'ah veDibur - Information & Insight

A Window into the Charedi World

29 Adar II 5760 - April 5, 2000 | Mordecai Plaut, director Published Weekly








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Car Costs Calculated

by S. Fried

Car owners in Israel: beware! The following article is liable to upset you. If you are car-less, however, the following report might make you feel better the next time you order a taxi. You are actually saving a quite a lot of money.

Chashav Maarchot Meida has figured out how much it costs to maintain a private car in Israel today. The average upkeep for a car of 1600 cubic centimeters (cc) -- which cost NIS 62,000 to buy and covers 1250 kilometers a month -- is NIS 2102 ($525) monthly; NIS 25,224 ($630) annually. The actual cost is NIS 1.68 per kilometer.

If you own a second car (1300 cubic centimeters at a cost of NIS 41,000 and covering 1250 kilometers a month) the upkeep is NIS 1627 ($400) monthly or NIS 19,524 ($4800) annually, at an actual rate of NIS 1.30 per kilometer.

In order not to scare you too much, let us note that these figures also include depreciation costs. But the expense for gasoline alone is not cheap either: it is more than double the cost of a monthly bus pass. If only one person uses the family car, it is a very expensive convenience. If the car serves the entire family, however, the figures are proportionately reduced. According to Chashav's estimates, average gasoline costs were NIS 572 ($143) per month for an average car (1600 cc). Last year, the cost was NIS 477 ($119) a month.

If you own an average jeep -- let's say 2500 cubic centimeters covering 30,000 kilometers a year and consuming 289 liters of solar gas a year -- you pay NIS 604 per month for fuel, while last year you paid only 387: a raise of 55%.

For tax purposes, the amount you are allowed to deduct for business use of various cars is as follows: 1300 cc: NIS 2.59 per kilometer; 1600 cc: NIS 2.88 per km; 1800 cc: NIS 3.22 per km.

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