East Dundee will put gas in your new car tank

East Dundee is working with local car dealers on an incentive program that will give some drivers relief at the pump while boosting the local economy.

For the month of July, the village will issue gas cards to customers who purchase a new or used vehicle from an East Dundee auto dealer, Village Administrator Frank Koehler said.

Buyers of a new vehicle will net a $100 gas card, while those who buy a used car for at least $5,000 will score a $50 gas card.

"We have been talking about this for a number of months, ways to promote motor vehicle sales in the village," Koehler said. "This will benefit the car dealers, gas stations and the village."

Koehler said a 1 percent sales tax rate produces about $350,000 in revenue annually for the village.

That means, for a $25,000 vehicle, the village receives $250 in revenue.

Though the gift cards would cut into the village's tax collections, Koehler said the goal is to encourage people to support local businesses.

"Car sales are critical," Koehler said. "If we can help them out, help them keep up their volume, keep selling cars and keep jobs in the village, in that sense, the fact that it is revenue-neutral is fine."

Libertyville has launched a program that offers car buyers $100 in gift vouchers to use at other local businesses.

East Dundee Village President Jerry Bartels said given the economic climate, the village needs to get creative.

"It is not going to be a revenue generator. We will see some revenue, but most of the revenue the village receives will be used for the program," Bartels said. "We are willing to give up a little bit of revenue to promote the businesses in town."

East Dundee village boasts three new car dealers - Al Piemonte Chevrolet, Spring Hill Ford and Saturn of Dundee, and six used car dealers - Dundee Motors, Miro Motors, Main Street Motors, Luxor Motor Cars and Superior Car Credit Inc.

Each dealership is eligible for the gas card program.

"We're trying to get citizens to buy locally and support dealerships that are in their own backyard," said Mary McHugh, director of community and consumer relations for Saturn of Dundee. "I don't know how much business it will generate, but it will focus the public's attention to the grass roots efforts to support local business, and hopefully it will spread to other businesses as well."