Out of all the popular cities in Israel, Eilat is the cheapest city to rent a car in at just $8/day. Renting a car in Eilat is 39% cheaper than renting one in Tel Aviv where the per day rate is around $13. Other fairly inexpensive cities in Israel to get a rental car in are: Jerusalem ($10/day), Haifa ($11/day), and Tel Aviv ($13/day). While these cities typically have cheaper prices than the rest of the country, travelers looking to rent a car in Tel Aviv should expect to spend around $13/day on their transportation. The most popular city to rent a car in Israel is Tel Aviv.