If we knew of a place where you can get a car cheaper than anywhere else, you'd want us to tell you, right? Well, the small town of Tracy, CA is that place. The municipality is giving away 800 $500 gift certificates to any one of the city's car dealerships and the dealers apparently love the program. Sales in the region are down 50% versus previous years, and a Volkswagen store has already closed, and a Cadillac/Pontiac/GMC store is set to follow suit at the end of this month.

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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