65C - RESIDENT VEHICLE INCENTIVE PROG

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Santa Ana Resident Vehicle Incentive Program January 15, 2019 Page 2 Sales In 2017, Santa Ana residents purchased 1,688 of 6,220 (27%) new vehicles, leased 687 of 8,348 (8%) vehicles, and purchased 597 of 5,382 (11%) used vehicles from the franchised Santa Ana auto dealers who are members of OCADA. The concern from the franchised Santa Ana auto dealers is that the recently voter approved sales tax increase would drive sales away from Santa Ana auto dealers. It is in the best interest of the City of Santa Ana and the dealers to retain and increase sales levels at their dealerships. An increase in the number of vehicles purchased at franchised Santa Ana auto dealerships by Santa Ana residents bolsters the local economy and would also provide opportunity and encouragement for an expansion of the number of auto dealerships located within the City. This also would have a positive effect on the number of jobs created and available locally, resulting in a net benefit to the community at large. Program Terms The OCADA has outlined the parameters of their requested program represented below. Totals for the number of new, leased and used autos sold are estimated at 25% above last year's totals. OCADA Pro ram Terms Term Min 2 Years with two 1- ear extensions Rebate Amount New Cars $500 Rebate Amount Leased Cars $500 Rebate Amount Used Cars() $500 Effective Monday, April 1, 2019 Structure Resident Choice: Dealer reimbursed for rebate or City issues check to resident Rebate Budget $1,700,000 City Administration Budget $25,000 Dealer Marketing Budget $25,000 per dealer $250,000 TOTAL BUDGET $1,975,000 Participating Dealers • Audi South Coast • Crevier BMW Crevier Mini Freeway Honda • Guaranty Chevrolet Lincoln South Coast Subaru Orange Coast • Tom's Truck Center Volkswagen South Coast • Volvo of Orange County (1) Minimum Used Car Purchase price of $15,000 65C-2