California town giving away $500 gift cards to buy cars
While the city is spending $800,000 in public money to fund (including advertising) the program, it won't only serve the dealers. In the past, the city received 20% of its revenue from dealers, and recently that figure is down to 15%. Sales taxes from the sale of cars and trucks also make up 30% of the city's $45 million city fund, which pays for necessary services like police and fire. The taxes paid on the 800 vehicles will pay off a significant portion of the $800,000. Spurring sales at the dealerships will also help save tax-paying jobs, further bolstering the city's finance.
The $500 gift certificates makes Tracy, California a hot spot for car sales. It also illustrates just how important dealerships are to small cities and towns across the US. Thanks for the tip, Jon!
[Source: Tracy Press]
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