Israel Car Finance & Leasing Market

Israel Car Finance & Leasing Market, valued at USD 3.5 billion, grows with EV incentives, flexible options, and urbanization, focusing on personal and commercial leasing segments.

Region:Middle East

Author(s):Geetanshi

Product Code:KRAB6336

Pages:94

Published On:October 2025

About the Report

Base Year 2024

Israel Car Finance & Leasing Market Overview

  • The Israel Car Finance & Leasing Market is valued at USD 3.5 billion, based on a five-year historical analysis. This growth is primarily driven by increasing consumer demand for flexible financing options, the rise of electric vehicles, and a growing trend towards urbanization, which has led to a higher need for personal and commercial transportation solutions.
  • Key cities such as Tel Aviv, Jerusalem, and Haifa dominate the market due to their high population density, economic activity, and infrastructure development. These urban centers have a significant concentration of businesses and consumers, leading to increased demand for car leasing and financing services.
  • In 2023, the Israeli government implemented regulations to promote electric vehicle adoption, including incentives for leasing electric cars. This initiative aims to reduce carbon emissions and encourage sustainable transportation, significantly impacting the car finance and leasing market.
Israel Car Finance & Leasing Market Size

Israel Car Finance & Leasing Market Segmentation

By Type:The market is segmented into various types of leasing options, including personal car leasing, commercial vehicle leasing, fleet leasing, operating lease, finance lease, short-term rentals, and others. Each of these segments caters to different consumer needs and preferences, with personal car leasing being particularly popular among individual consumers seeking flexibility and affordability.

Israel Car Finance & Leasing Market segmentation by Type.

By End-User:The end-user segmentation includes individual consumers, small and medium enterprises (SMEs), large corporations, and government agencies. Individual consumers dominate the market, driven by the increasing preference for leasing over purchasing vehicles, which offers lower upfront costs and greater flexibility.

Israel Car Finance & Leasing Market segmentation by End-User.

Israel Car Finance & Leasing Market Competitive Landscape

The Israel Car Finance & Leasing Market is characterized by a dynamic mix of regional and international players. Leading participants such as Leasys Israel, AutoLease, Bank Hapoalim, Leumi Card, Mizrahi Tefahot Bank, Isracard, Cal Auto, Hertz Israel, Avis Israel, Car2Go, Gett, DriveNow, Shlomo Sixt, Budget Israel, Car Finance Israel contribute to innovation, geographic expansion, and service delivery in this space.

Leasys Israel

2000

Tel Aviv, Israel

AutoLease

1995

Jerusalem, Israel

Bank Hapoalim

1926

Tel Aviv, Israel

Leumi Card

1995

Tel Aviv, Israel

Mizrahi Tefahot Bank

1923

Tel Aviv, Israel

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue Growth Rate

Customer Acquisition Cost

Market Penetration Rate

Customer Retention Rate

Pricing Strategy

Israel Car Finance & Leasing Market Industry Analysis

Growth Drivers

  • Increasing Demand for Personal Vehicles:The demand for personal vehicles in Israel has surged, with over 350,000 new cars registered in the future alone, reflecting a 15% increase from the previous year. This growth is driven by urbanization and a shift in consumer preferences towards personal mobility solutions. The Israeli population's increasing inclination towards owning vehicles, particularly among younger demographics, is expected to sustain this trend, further bolstering the car finance and leasing market.
  • Rise in Disposable Income:Israel's GDP per capita is projected to reach approximately $55,000 in the future, indicating a steady rise in disposable income. This increase allows consumers to allocate more funds towards vehicle purchases and financing options. As financial stability improves, more individuals are likely to seek car financing solutions, enhancing the overall market for car finance and leasing services in the country.
  • Expansion of Financing Options:The Israeli car finance market has seen a significant expansion in financing options, with over 45% of new car purchases financed through loans or leasing agreements in the future. Financial institutions are increasingly offering tailored products, including low-interest loans and flexible leasing terms, to attract a broader customer base. This diversification in financing solutions is expected to drive market growth as consumers seek accessible and affordable options for vehicle acquisition.

Market Challenges

  • High Interest Rates:The current average interest rate for car loans in Israel stands at around 6.0%, which poses a significant barrier for potential buyers. High borrowing costs can deter consumers from pursuing financing options, leading to a slowdown in vehicle sales. As interest rates remain elevated, the affordability of car financing may continue to challenge market growth, particularly for lower-income consumers seeking personal vehicles.
  • Regulatory Compliance Complexities:The car finance and leasing sector in Israel faces stringent regulatory requirements, including compliance with consumer protection laws and financial regulations. In the future, over 35% of finance companies reported challenges in navigating these regulations, which can lead to increased operational costs and potential penalties. This complexity can hinder market entry for new players and limit the growth potential of existing companies in the sector.

Israel Car Finance & Leasing Market Future Outlook

The Israel car finance and leasing market is poised for significant evolution, driven by technological advancements and changing consumer preferences. The shift towards online financing solutions is expected to streamline processes, making vehicle financing more accessible. Additionally, the rise of subscription-based car services will cater to consumers seeking flexibility. As sustainability becomes a priority, financing options for electric vehicles will likely gain traction, aligning with government incentives and consumer demand for greener alternatives.

Market Opportunities

  • Growth in Electric Vehicle Financing:With electric vehicle sales projected to exceed 120,000 units in the future, financing options tailored for EVs present a lucrative opportunity. Financial institutions can capitalize on this trend by offering specialized loans and leasing agreements that cater to environmentally conscious consumers, thereby enhancing their market share in the evolving automotive landscape.
  • Expansion of Digital Financing Platforms:The increasing adoption of digital platforms for car financing is transforming the market. In the future, it is estimated that over 65% of consumers will prefer online financing solutions. Companies that invest in user-friendly digital interfaces and streamlined application processes can attract tech-savvy customers, positioning themselves favorably in a competitive market.

Scope of the Report

SegmentSub-Segments
By Type

Personal Car Leasing

Commercial Vehicle Leasing

Fleet Leasing

Operating Lease

Finance Lease

Short-term Rentals

Others

By End-User

Individual Consumers

Small and Medium Enterprises

Large Corporations

Government Agencies

By Vehicle Type

Sedans

SUVs

Trucks

Vans

Electric Vehicles

Hybrid Vehicles

Others

By Financing Type

Lease Financing

Loan Financing

Hire Purchase

Others

By Duration

Short-term Leasing

Long-term Leasing

Flexible Leasing

By Payment Structure

Fixed Payments

Variable Payments

Balloon Payments

By Distribution Channel

Direct Sales

Online Platforms

Dealerships

Brokers

Others

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Bank of Israel, Ministry of Finance)

Automobile Manufacturers

Leasing Companies

Financial Institutions (e.g., Banks, Credit Unions)

Insurance Companies

Automotive Dealerships

Fleet Management Companies

Players Mentioned in the Report:

Leasys Israel

AutoLease

Bank Hapoalim

Leumi Card

Mizrahi Tefahot Bank

Isracard

Cal Auto

Hertz Israel

Avis Israel

Car2Go

Gett

DriveNow

Shlomo Sixt

Budget Israel

Car Finance Israel

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Israel Car Finance & Leasing Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Israel Car Finance & Leasing Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Israel Car Finance & Leasing Market Analysis

3.1 Growth Drivers

3.1.1 Increasing demand for personal vehicles
3.1.2 Rise in disposable income
3.1.3 Expansion of financing options
3.1.4 Government incentives for electric vehicles

3.2 Market Challenges

3.2.1 High interest rates
3.2.2 Regulatory compliance complexities
3.2.3 Economic fluctuations
3.2.4 Limited consumer awareness

3.3 Market Opportunities

3.3.1 Growth in electric vehicle financing
3.3.2 Expansion of digital financing platforms
3.3.3 Partnerships with automotive manufacturers
3.3.4 Increasing demand for fleet leasing

3.4 Market Trends

3.4.1 Shift towards online financing solutions
3.4.2 Rise of subscription-based car services
3.4.3 Focus on sustainability and green financing
3.4.4 Integration of technology in leasing processes

3.5 Government Regulation

3.5.1 Emission standards for vehicles
3.5.2 Tax incentives for electric vehicles
3.5.3 Consumer protection laws
3.5.4 Licensing requirements for finance companies

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Israel Car Finance & Leasing Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Israel Car Finance & Leasing Market Segmentation

8.1 By Type

8.1.1 Personal Car Leasing
8.1.2 Commercial Vehicle Leasing
8.1.3 Fleet Leasing
8.1.4 Operating Lease
8.1.5 Finance Lease
8.1.6 Short-term Rentals
8.1.7 Others

8.2 By End-User

8.2.1 Individual Consumers
8.2.2 Small and Medium Enterprises
8.2.3 Large Corporations
8.2.4 Government Agencies

8.3 By Vehicle Type

8.3.1 Sedans
8.3.2 SUVs
8.3.3 Trucks
8.3.4 Vans
8.3.5 Electric Vehicles
8.3.6 Hybrid Vehicles
8.3.7 Others

8.4 By Financing Type

8.4.1 Lease Financing
8.4.2 Loan Financing
8.4.3 Hire Purchase
8.4.4 Others

8.5 By Duration

8.5.1 Short-term Leasing
8.5.2 Long-term Leasing
8.5.3 Flexible Leasing

8.6 By Payment Structure

8.6.1 Fixed Payments
8.6.2 Variable Payments
8.6.3 Balloon Payments

8.7 By Distribution Channel

8.7.1 Direct Sales
8.7.2 Online Platforms
8.7.3 Dealerships
8.7.4 Brokers
8.7.5 Others

9. Israel Car Finance & Leasing Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue Growth Rate
9.2.4 Customer Acquisition Cost
9.2.5 Market Penetration Rate
9.2.6 Customer Retention Rate
9.2.7 Pricing Strategy
9.2.8 Average Lease Duration
9.2.9 Fleet Utilization Rate
9.2.10 Net Promoter Score (NPS)

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Leasys Israel
9.5.2 AutoLease
9.5.3 Bank Hapoalim
9.5.4 Leumi Card
9.5.5 Mizrahi Tefahot Bank
9.5.6 Isracard
9.5.7 Cal Auto
9.5.8 Hertz Israel
9.5.9 Avis Israel
9.5.10 Car2Go
9.5.11 Gett
9.5.12 DriveNow
9.5.13 Shlomo Sixt
9.5.14 Budget Israel
9.5.15 Car Finance Israel

10. Israel Car Finance & Leasing Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Budget Allocation Trends
10.1.2 Preferred Financing Options
10.1.3 Decision-Making Processes
10.1.4 Supplier Selection Criteria

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment Priorities
10.2.2 Financing Preferences
10.2.3 Long-term Contracts

10.3 Pain Point Analysis by End-User Category

10.3.1 Cost Management Issues
10.3.2 Service Quality Concerns
10.3.3 Flexibility in Leasing Terms

10.4 User Readiness for Adoption

10.4.1 Awareness of Financing Options
10.4.2 Technology Adoption Levels
10.4.3 Training and Support Needs

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Performance Metrics
10.5.2 Customer Feedback Mechanisms
10.5.3 Opportunities for Upselling

11. Israel Car Finance & Leasing Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Value Proposition Development

1.3 Revenue Streams Analysis

1.4 Cost Structure Evaluation

1.5 Key Partnerships Exploration

1.6 Customer Segmentation

1.7 Channels of Distribution


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs

2.3 Target Market Identification

2.4 Communication Strategies

2.5 Digital Marketing Approaches


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-ups

3.3 Online Distribution Channels

3.4 Partnerships with Dealerships


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands Analysis

4.3 Competitor Pricing Strategies


5. Unmet Demand & Latent Needs

5.1 Category Gaps Identification

5.2 Consumer Segments Analysis

5.3 Emerging Trends Exploration


6. Customer Relationship

6.1 Loyalty Programs Development

6.2 After-sales Service Enhancements

6.3 Customer Engagement Strategies


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains

7.3 Customer-Centric Approaches


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Initiatives

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix Considerations
9.1.2 Pricing Band Strategies
9.1.3 Packaging Options

9.2 Export Entry Strategy

9.2.1 Target Countries Identification
9.2.2 Compliance Roadmap Development

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model Evaluation


11. Capital and Timeline Estimation

11.1 Capital Requirements Analysis

11.2 Timelines for Implementation


12. Control vs Risk Trade-Off

12.1 Ownership Considerations

12.2 Partnerships Evaluation


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability Strategies


14. Potential Partner List

14.1 Distributors Identification

14.2 Joint Ventures Exploration

14.3 Acquisition Targets Analysis


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning
15.2.2 Activity Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports from the Israel Central Bureau of Statistics
  • Review of financial statements and annual reports from leading car finance and leasing companies
  • Examination of market trends and consumer behavior studies published by automotive associations

Primary Research

  • Interviews with financial analysts specializing in automotive finance
  • Surveys conducted with car leasing companies to gather insights on market dynamics
  • Focus groups with consumers to understand preferences in car financing options

Validation & Triangulation

  • Cross-validation of data through multiple industry sources and reports
  • Triangulation of findings from primary interviews with secondary data insights
  • Sanity checks performed by consulting with industry experts and stakeholders

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total market size based on national automotive sales data
  • Segmentation of the market by financing type: loans vs. leasing
  • Incorporation of macroeconomic indicators such as GDP growth and consumer credit availability

Bottom-up Modeling

  • Collection of data on average transaction values from leading car dealerships
  • Analysis of financing terms and conditions offered by major banks and financial institutions
  • Volume estimates based on historical data of car registrations and financing approvals

Forecasting & Scenario Analysis

  • Development of predictive models using historical growth rates and economic forecasts
  • Scenario analysis based on potential regulatory changes affecting car financing
  • Assessment of consumer sentiment and its impact on future financing trends

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Car Leasing Companies100Leasing Managers, Financial Analysts
Banking Institutions Offering Auto Loans80Loan Officers, Risk Assessment Managers
Consumers Engaged in Car Financing150Recent Car Buyers, Leaseholders
Automotive Dealerships70Sales Managers, Finance Managers
Industry Experts and Analysts50Market Researchers, Economic Analysts

Frequently Asked Questions

What is the current value of the Israel Car Finance & Leasing Market?

The Israel Car Finance & Leasing Market is valued at approximately USD 3.5 billion, reflecting a significant growth driven by increasing consumer demand for flexible financing options and the rise of electric vehicles.

What factors are driving growth in the Israel Car Finance & Leasing Market?

Which cities are the main contributors to the Israel Car Finance & Leasing Market?

What types of leasing options are available in the Israel Car Finance & Leasing Market?

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Japan Automotive Loans Market

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Oman Mobility as a Service Market

South Korea Automotive Aftermarket Market

Kuwait Sustainable Transportation Financing Market

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