Libertyville auto dealers hope incentives boost business

Car dealers aren't shy about hawking their wares, but working together is another story.

However, the every man for himself business practice is beginning to change in Libertyville - a response to a down market and a push by the village to stimulate its largest sales tax-producer.

"I've been in the car business in Libertyville over 30 years, and this is the first time there is a collaborative effort among dealers," said Glen Bockwinkel, co-owner of Acura of Libertyville. "We've had four meetings in the last two months, and I haven't had four meetings in 30 years."

The village's 13 dealers have begun marketing themselves as the "Libertyville Mile of Cars", a reference to the traditional strip of dealerships that line Milwaukee Avenue. They also plan for the first time to have a collective presence Saturday in the annual Libertyville Days parade.

One spark has been the village's $65,000 investment in an incentive program - believed to be among the first in the Chicago area - that gives those who buy or lease a new car $100 to be used at more than 130 participating local businesses. The village-backed vouchers are distributed by dealers in $25 increments.

The program, which began Monday and runs through Sept. 7, already has generated results. As of Friday morning seven vouchers had been redeemed at village hall.

"I would expect we'll be getting a number of them through the mail in the next week because the dealers tell me they've given out quite a few," said Heather Rowe, the village's economic development coordinator.

"In general conversations with people it sounds like the program is well received, and a few of the dealers said it did make a difference (to customers) to check out the Libertyville dealerships as opposed to another one."

Bockwinkel said he personally dealt with a Vernon Hills customer, who accelerated his new car purchase because of the incentive.

Determining whether the program translates to increased sales will be somewhat difficult, he added. All dealers are down 30 percent to 40 percent and other factors are coming into play.

"What's happening that we can't control is the bankruptcies with GM and Chrysler. Even if we sell cars we may not have the inventory to get back," to previous sales totals, he explained.

Bockwinkel said he has a 20-day inventory of cars as opposed to the usual 60-day supply, for example.

In any case, both the dealers and village have a vested interest in seeing the program work.

"One hundred dollars to somebody today is like $300 two years ago," he said.