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#1739129 - 09/07/12 07:24 PM Used car dealer- cash deposits
RMH Offline
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Joined: Sep 2010
Posts: 6
We have a used car dealership whose cash deposits make up 28% of their total deposits. We do not see this much cash from our other car dealer accounts. The cash deposits do not appear to be structured.

Does that amount of cash deposits seem normal for this type of business? Any feedback is appreciated. Thanks in advance.

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#1739158 - 09/07/12 07:59 PM Re: Used car dealer- cash deposits RMH
NotDoneYet Offline
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NotDoneYet
Joined: Jul 2010
Posts: 482
PA
It would be normal in my area because people like to pay cash for everything. You would need to compare to similar customers to determine if it's normal for your region.

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#1739161 - 09/07/12 08:00 PM Re: Used car dealer- cash deposits RMH
E.E.G.B Offline
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E.E.G.B
Joined: Jul 2002
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the sandy shore
Is it a 'tote-the-note' place? Where they finance the purchase and get paid weekly, perhaps in cash, by the buyer? Those tend to have higher cash intake.
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#1739165 - 09/07/12 08:05 PM Re: Used car dealer- cash deposits RMH
Cape Codder Offline
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Joined: Jul 2011
Posts: 413
It's not unusual for used car dealers to cater to cash. It usually depends on the quality of their inventory. Quicker turnover for the dealership and better deal for the buyer. If the amount/frequency of currency deposits appears excessive You may want to have the account officer visit the dealership to obtain more information regarding their sales volumes.
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#1742327 - 09/19/12 08:06 PM Re: Used car dealer- cash deposits RMH
BSALadies Offline
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BSALadies
Joined: May 2012
Posts: 39
We have quite a few used car dealers and almost all of them have a higher cash intake. For our area that is normal. When we are looking at cash activity for our car dealers we tend to look at the area that they are in and compare their cash to our other customers in the same line of business.
Also, if we have questions or concerns we can normally have the branch manager or our market managers inquire with the customers about their activity.

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