East Dundee pumps more cash into free gas incentive
The federal government's Cash for Clunkers program may be sputtering on empty, but East Dundee's gas card incentive for car buyers is getting a refill.
After a successful trial through the month of the July, the village is extending the program offering free gas to customers who buy a new or used vehicle from one of East Dundee's nine dealerships.
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 to use at the village's two gas stations - Shell, 160 Dundee Ave., or Citgo, 421 E. Main St.
Those looking for a new ride now have until Sept. 30 to capitalize on the incentive.
Village Administrator Frank Koehler at Monday's village board meeting estimated that $1.5 million in motor vehicles were sold, resulting in sales tax revenues of $15,000 that will go into the village's general fund.
"With it being as challenging as it is right now, to the extent that we can bring people to the local dealers the program has been successful," Koehler said. "We are giving the dealers an opportunity to keep going and keep their lights on."
In a good year, Koehler said, the 1 percent tax on car sales produces about $350,000 for the village. Koehler added it has been a few years since the dealerships have done that well.
In all, the village spent about $7,000 on gas cards and advertising using funds from a special taxing district in which the dealers are located.
Though exact sales figures were unavailable, Saturn of Dundee general sales manager Roger Clegg said the program created a buzz in the store.
"We would bring it up to people in the beginning of the sales process and people liked it," Clegg said. "It certainly did help and it's definitely a win-win."
East Dundee boasts three new car dealers - Al Piemonte Chevrolet, Spring Hill Ford and Saturn of Dundee - and six used car dealers - Dundee Motors, Healy Auto Sales, Miro Motors, Main Street Motors, Luxor Motor Cars and Superior Car Credit Inc.