Now, in the depths of a recession, the city wants to preserve that investment, throw a lifeline to the struggling auto dealers and their workers, and offer a stimulus that benefits the rest of the town, too.
It’s the Shop Inside the Triangle program, approved last night by the City Council and rolled out today for the community.
The city of Tracy will spend money — $100,000 to market the program and $400,000 on 800 gift cards for new car buyers that can be used at any retail or dining establishment in town.
Then the city will make money — say, $200,000 in sales tax for $20 million in car sales, and $4,000 in sales tax for the $500 gift cards — making the estimated net fiscal impact of the shop-local program almost $300,000 ($100,000 for marketing plus $400,000 for gift cards minus $204,000 equals $296,000).
The numbers make sense, but there’s more to it.
Helping Tracy’s auto dealers stay in business will keep more people working at the dealerships. Marketing this shop-local campaign will propel more shoppers to the Tracy Auto Mall, just off Naglee Road north of Interstate 205, where, regardless of the city’s efforts, there will likely be eight dealerships by June, instead of nine.
For those who buy new cars, there will be something extra in return, to spend at other Tracy businesses. Then those retailers and restaurants can offer deals to gift-card-holders to further encourage sales.
The new shop-local program is a part of a larger plan to stimulate the local economy, in a city that has the capital to carry it out — and it’s a great idea. We’re all for it.
For more info, visit www.ci.tracy.ca.us.
Everyone has an opinion even if it goes against the grain of others thinking. What makes you so self righteous that others can't have an opinion.
If you think you've hit a nerve you should think again. I think I've done my job in annoying you and you had to respond.
Glad you had a nice weekend. I know I did.
I can see in your 3rd paragraph that you're getting a little hot under the collar. Maybe you should get a cold drink and cool off.
Have a good Tuesday.
Scientifically, it is also true in many other comparable cities. Car sales are one of the biggest sources of revenue. Second largest source of revenue.
Glad I could hit a nerve! I could hear you seething as you typed your response.
Sorry but I had a life this weekend...time for family and Mom!
Also, it shows how little you know when you say ""Unless any of our "auto mall" dealerships can offer you a better price, better financing, etc, Sacramento will almost always be a better place to purchase a new car"". To consider your point of view, if you strip away your "conditions" and assume for a moment that the price IS the same and the financing IS the just as good, etc. then why do you spew the lunacy that Sacramento would be a better place to purchase ANY car than here in Tracy? For that matter any other product! Fool.
P.S. I don't have a clue who Killerbee is but if you read the last line of his/her statement it's pretty obviously a stab at humor.
SJ
The primary focus of the program is to help business?
The gift cards seem like a nice perk too.
wink wink... hint hint, please please...
This sounds like a stipulation in receiving the gift card, to use it within the city, so the money did go to City revenue.. as long as that stipulation was in place?
Good morning!
It's been almost 12 hrs since my last post and I didn't want to disappoint you guys.
I've been told that my posting is actually to annoy the feeble minded and I see it's working.
I heard you were the significant other to scottjohnson. From your comments it appears that you must sit next to each other.
If you would have asked, I could have told you that I purchased my cars new. When you begin to assume, well, you know...you start to sound like scottjohnson.
And, you're going to have to read the articles much better. The articles don't mention anything about "giving" you a car like you commented... "Hell, give me a new car and I'll spend that money,". I'm afraid you're going to have to purchase. I'd tell you to make a mental note but I see you're out of paper.
Actually smart *ss I purchased my last car at Tracy Chevrolet.
Unless any of our "auto mall" dealerships can offer you a better price, better financing, etc, Sacramento will almost always be a better place to purchase a new car. If you think that $500 will entice anyone to purchase a car that can be had for less somewhere else then I say go ahead and buy it.
Johnson, I don't blog ALL day but when I am on my computer I check the Tracy Press site. As far as getting a salary raise or a job...been there, done that, and retired. Now if you didn't check to see if I blog ALL DAY maybe you'd get more work done or get a raise.
Maybe if you didn't blog ALL DAY you could do do better at work and possibly get a raise. If you don't work...Get a job.
There are still a lot of people buying cars just not as many as a couple of years ago and I'm sure that the numbers of cars sold will go up again and it sounds like the City doesn't want to lose their biggest tax generators.
Also, how would one of the "numerous" Sacramento auto malls compete with the $500 give-a-way? The City is paying for it and not our auto dealers which gives our dealers a $500 advantage over Sacramento or anyone else for that matter.
I bet that this will help them sell a lot more cars and yes it does look enticing.
SJ
P.S. You probably never buy a car locally anyway, do you?
The majority of people today can't afford a new car so don't feel bad. We have 3 cars, all paid for, so why should I go out and buy another car only to have monthly payments? The $500 incentive to buy just isn't there for me.
This is a desperate plan on the part of city hall.
If people looking for a new car can afford to buy, then they certainly don't need an extra $500 in their pocket.
If they live out of town, ie: Sacramento, there are numerous auto malls up that way that can certainly compete with the $500 give-a-way to make purchasing up there worth their while.
If people can't afford to buy a new car but think that getting $500 extra in their pockets all they're going to do is put themselves in a financial bind when the monthly payments begin.
Unless you're fortunate enough to pay cash for a new car, just remember that the majority will be making monthly payments. To be able to get their monthly payments low they're going to have to take out a 72 month car loan with who-knows-what for an interest rate.
Does that $500 look that enticing now?
In another article in the Press, the amount being paid for a consultant is "no more than $200,000" to make a flag and banners.
Who in today's economy can afford to buy a new car? So you come to Tracy, buy a car, take your receipt to City Hall to receive your $500 gift card. You spend it in one month for groceries for your family of four. The next month you have your first of 72 payments of over $500 for your new car. That same month you receive your premium for car insurance which is sky-high because it's a new car. The following year you receive from DMV your first bill for registration which should be around $300.
Sorry Tracy Press....this reader doesn't agree with you or the city.