Local Auto Dealerships and Your Community

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Local Auto Dealerships and Your Community

Greetings from the Hemet Car Guy

Besides the new-car smell, there are many reasons people love buying new automobiles. The excitement of new technology and the contribution to family and work for several years. It all adds up to a significant investment for nearly 50,000 Americans each day who come home with a new or almost vehicle.

The untold story, though, is that the buyer at a dealership is effectively supporting a significant local business- The vehicle is a rolling symbol of economic prosperity and investment in ourselves and our communities.

Economics

Hundreds of people are directly employed by dealerships in your area, results in millions of dollars in employee compensation including what’s generated in personal tax revenues that support local, state and federal budgets. The Gosch Auto Group has been in the Valley since 1964. And others have joined our valley like the Pedder Auto Group and other new car franchises not to mention the Independent Car dealerships like VIP Autos, all together bring a lot of money to our community.

Sales at just new-car dealerships account for 15% of all retail sales in the U.S.; accordingly, new-car dealerships generate 15% of all U.S. sales tax revenue, according to research by the National Automobile Dealers Association (NADA), establishing the bright, shining car lot as a symbolic beacon of budget dollars to be appropriated to items including education, police and fire departments, infrastructure projects and beyond. The car dealership is a haven for employment and a tax base for local governments across the country.

Additionally, the franchised dealership network is one of countless small businesses that are often family-owned and -operated; 92% of them are privately owned, according to NADA. But beyond the jobs the auto dealer network provides, there are few industries that contribute to the economy so directly.

The car dealership represents value to governments, employees—and also to the consumer.

Dedicated to Community

Car dealerships are uniquely prominent and easily recognizable in their communities. They’re also beacons behind the scenes, thanks to their significant support of communities and charitable programs.

Their contributions are generous. A survey made to the dealerships showed that they donated or lent out approximately $4.5 million worth of vehicles for charitable causes. Thousands donate time to the National Automobile Dealers Charitable Foundation, which supports schools, hospitals, emergency disaster relief, Canine Companions for Independence (including a program to help wounded veterans) and other community-based initiatives. And dealers are giving cash as well: Nearly 50% of dealers gave more than $25,000 to nonprofit and charitable causes with 13% giving in excess of $100,000.

“Franchised new-car dealers are among the largest supporters of community-based programs and charitable organizations in most towns across the country,” says NADA President Peter Welch. “New-car dealers support their local communities in many ways—from creating well-paying jobs and generating significant revenue in taxes to providing other economic benefits.”

Ultimately, these efforts and the economic base supported by the dealer network go a long way toward strengthening local communities, and by extension the national economy. With that in mind, car buyers will do quite well by continuing to relish that whole new-car experience. It’s better for us in more ways than you might think.

Thank you for your support.

Good Driving!

The Hemet Car Guy

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