Just to provide closure on this thread, I ended up buying a 2012 Ford S-Max.
The tax savings for olim saved me around 21k shekel.
Bought it from the Ford dealer in Talpiot after checking out around 5+ other options.
And no, you're not treated like a king when you buy a car. In some dealerships, I actually had to try to get their attention as they were ignoring me. I found that Toyota seemed to be the most interested in selling me a car, maybe because the agent helping me was Anglo. (Of course, he was no longer working there 2 weeks later, so maybe he was going against Israeli law.)
If you have any questions about the process, feel free to pm me.