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Cardone Proposes Bill to Assist Auto Dealer

AUTO DEALERS CRITICAL TO YOUR CITY’S TAX REVENUE
by Grant Cardone

Retail auto dealers are critical and vital to the survival of your city, county, and state tax revenues. This country’s economy is ultimately more dependent upon the survival of your local auto dealer than even the much publicized auto manufacturers. Without dealers buying and selling product no plan to assist the manufactures will be successful.

Auto dealers generate the much needed revenue to city, county and state budgets with some municipalities receiving as much as 30% of all tax revenue from the tax revenue generated from auto sales. Newspaper, TV and radio advertising are dependent upon the dollars auto dealers spend in order to fill their papers and ad time.

Auto dealers represent main street-middle class America providing over one million managerial, mechanics, technicians and sales positions. These jobs range from minimum wage to very high paying management salaries including bonuses and commissions providing for incomes at the middle-class level that would not be otherwise available.

In 2008, 128 car dealerships closed in the state of California while registrations of new cars and light trucks declined 23%. The much depended upon tax revenue dropped as much as 30% in some of those cities.

If car dealers are unable to purchase new cars from the manufacturers the factories will reduce output, entire industries dependent upon manufactures will fail, more jobs will be lost and more importantly, cities dependent upon that tax revenue will bleed red ink. This will negatively impact those services we all take for granted such as schools, hospitals, police and fire departments, teachers salaries, water systems, utilities and more.

Auto dealers are some of the best and most basic examples of the entrepreneurial spirit in this country and as they succeed or fail so does middle class America and the infrastructure of the cities we live.

‘The Car-Done Bill’ proposes that Auto Dealers with be provided immediate but temporary federal tax credits for any and all new or used car purchases for the entire year of 2009. Consumers would also be provided with temporary tax credits up to 15,000. These incentives would create a tremendous and practical stimulus, pumping much needed tax dollars into the city and state coffers without costing the American taxpayer a dime. This is not a bail out this is a stimulus. Remember without the tax revenues municipalities around the country will further strain the Federal Government because when communities run out of money they go to the state and when the state runs out they go to the Federal Government. The financial viability of the city and state you live in depend on the financial health of your local retail car dealers.

(This article has been viewed by over one million people. Click here to get a copy the link to this article so you can forward it to your auto dealers and your state representatives so that auto dealers are properly represented in Washington.)

Also,
CLICK HERE TO See Grant Fight for Auto Dealers on Fox TV

Grant Cardone, Author of Sell to Survive
(Mr. Cardone is NOT an Auto Dealer but a Concerned Citizen)

Views: 64

Tags: auto, bailout, cardone, credit, dealers, grant, tax, to

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Dealer
Comment by Stew Pedasso on February 16, 2009 at 10:19pm
You're proposed solution is logical and I understand your thinking. The problem is the banking system among the world's biggest players has been broken for awhile now. The last huge gallon of gas price increase sucked consumer spending dry, forcing every other dependant business commerce or industry into very hard times, which triggered the banks to cry uncle and declare for desperate help via Government aid.
I don't believe tax credits for sales will help dealerships much in this crisis, I tend to favor a tailored loan, or a structered federal government bailout due to the circumstances we're under.
Comment by Grant Cardone on February 7, 2009 at 3:08pm
Right on Sara, the reality you dont need factories without dealers and consumers and lenders!
thanks for your comment

Dealer
Comment by Sarah Lee Marks on February 7, 2009 at 2:40pm
I am NOT happy about the robbery of my tax dollars to factory executives (Nardelli) that don't get it. I would much rather see the dealerships and consumers come together to move the units with assistance in finance, tax credits for fuel efficiency etc. The manufacturers need to smarten up and listen tot he dealer and consumer driving the car before it goes over the cliff. www.everythingscars.wordpress.com
sarah lee
mycarlady.com
Comment by Joseph B Antley; JB ANTLEY on February 6, 2009 at 7:22am
Bravo! The bailout money needs must be used to create and sustain private sector jobs and stimulate the economy. As you said on Fox, it doesnt matter how much money the Big 3 are given if there are no dealers and no buyers purchasing the products.
Keep up the good work, Grant!
Comment by Bob Sherman on February 6, 2009 at 5:13am
Grant,

I am with you

Like Randall, I would have preferred that the Gov't place 50 billion dollars of tax credits to people to buy cars. That would approximate a $25,000 tax credit for about 2 million people. The idea would be to provide a tax credit to people who are driving older vehicles, and have them buy a new car!
Some would prefer these be for GM, Ford and Chrysler only, but I think it should open for all manufacturers. Consumers would have 12 months to take advantage of the tax credit. If they don't use theirs within a 12 month period, then their tax credit would go the next person waiting! This way, dealers are selling cars, sales people are making comissions, factories are building cars, vendors are supplying parts, and a whole lot of people are still receiving paychecks from working! This would bring immediate stimulation to the economy, instead of providing money to some of the useless groups in the bill working its way thru the government at this point!
Comment by Mark Dubis on February 6, 2009 at 4:39am
Those of us in the industry for any period of time know how vital local dealers are to this country. Dealers have been under-appreciated and under-valued for what they provide to our country and our communities. I am with you all the way, Grant, lets see how we can "Git-R-Done."

I am a long time "Chevy-Guy" and to show my support I posted the blog site, ILoveMyChevy.net where folks can post about their favorite chevy dealer and Chevy story. We all need to show much more support for this industry and the great folks who make it happen.
Comment by Randall Prince on February 5, 2009 at 11:55pm
Grant,

I like how you think. Whereas many in the auto industry are asking for money from the Government simply for existing, taking money from the average citizen (punishing them for doing well) and giving it to a business poorly positioned due to the current environment, getting government OUT OF THE WAY and allowing them the best chance of survival is the ONLY way the USA can still stay true to the morals and ideals of our forefathers and still be doing everything we can to help businesses in distress. By imposing draconian penalties, the Government has done everything possible to cripple a successful business.

I want to help auto manufactures and dealers, but not by selling my children out via "stimulus" packages that will only put our country further into debt. I want the free market to work like it should. This is a great time for the citizens of the US to reclaim power from the bureaucrats in Washington who have played fast and loose too long with our money.

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