DETROIT — Car dealerships are benefiting from tax breaks and government funds to help them improve their facilities, according to autonews.com.

Local and state governments benefit from the tax revenue and jobs generated by dealerships, and the dealerships are able to spend money on improvements. However, “the deals require upfront investment by dealers in time and legal fees, and they often come with strings,” said the article.

According to Jim Appleton, president of the New Jersey Coalition of Automotive Retailers and chairman of the Automotive Trade Association Executives, the government involvement might not be worth it.

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“The typical dealer wants less government involvement in their business, not more,” he noted in the article. “While free money is nice, most money attached to the government comes with strings and might not be worth the aggravation.”

A dealership in a rural community saved about $50,000 in taxes when it won approval on a deal from its county, reported the release. The savings may allow co-owner Nick Nortz to add another technician and add an extra service lift.

According to the article, dealers do not take part in more of these breaks because they do not know about them. Nortz said in the article that the arrangements are something dealers have to ask for.

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