Full text of G.20 Sales Finance Companies : January 15, 1947

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•

BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
January 16, 19U

G.20
SAI.ES FINANCE COMPANIES

NOVEMBER 1946
Retail financing.--The volume of automotive and other retail financing during November was
less than in the preceding month, although outstanding balances on both classes of paper continued
to increase. Declines of 3 per cent in automotive paper and of 8 per cent in diversified retail
paper acquired were accompanied by increases of 8 per cent in respective end-of-month outstanding
balances.
The decline in total retail automotive financing, shown in the table below, reflected
decreases in all types of cars financed except used commercial vehicles. The reduction of new oar
financing parallels the November decline in automobile production.
The decrease in diversified financing resulted from a seasonal decline in residential
repair and modernization paper, and a sharp reduction in the volume of miscelle~eous retail paper.
Furniture paper and paper based on sales of refrigerators and other household appliances showed gains
compared with the October volume.
Retail Financing by Sales Finance Companies

Class of retail instalment paper
Automotive:

Total retail

Passenger cars:
Commercial oars:

Other consumers' goods:

Percentage change October 1946 to November 1946
Volume of paper
Outstanding balances,
Number
acquired duriDg month end of month
of cars
- 6
--

- 3
--

New
Used

- 6
- 7

- 6

New
Used

- 4

- 1

- 2

+

Total retail

Furniture, radios, musical instruments
Refrigerators and other household appliances
Residential building repair and modernization
Miscellaneous retail

+ 8

1

...
...
...
...

- 8
--

+ 8
--

- 4

+ 7
+ 4

- 6

-21

...
...
...
...

Wholesale financin,.--The November volume of wholesale automotive financing was somewhat
less than that of October relecting a 4 per cent drop in the financing of new vehicles. Other
wholesale paper acquired rose about 14 per cent above the Ootober volume. Outstanding balances on
both classes of paper continued to ~.ncrease during the month.
~R~a~t~i~o~o~f~pa~~~~~~~~~~~~~~~~~~·~_--Paper purchased during November averaged

about 38 per cent of
to about 42 per cent.

month.

In October this ratio was equal

Note.--l;ovember data, based on returns from 168 sales finance companies, are canpUed in
the same manner as those shown in earlier reports. Aggregates represent only the totals for the
reporting companies and, since the reporting sample is not identical from month to month• they are
not comparable with totals of preceding months.




Page 2
SALES FINANCE COMPANIES

Table I.--Automotive and Diversified Financing by Sales Finance Companies
Indexes of Outstanding Balances: December 31, 1939 • 100 ~

Wholesale
automotive

Wholesale
other
than
automotive

100

100

100

100

100

136

132

16,9

140

129

131

1941 •••••••...•••..•••

152

149

175

260

148

147

1942 ••••••••••••••••••

53

37

112

40

76

61

1943 •••.••••••••.•••••

20

13

40

8

30

27

1944 ••••••••••••••••••

18

15

24

11

26

26

1945 ••••••••••••••••••

22

18

27

38

39

2'5

1945 -

November •••••••
December •••••••

21
22

17
18

24
27

32
38

37
39

24
23

1946 - January ••••••••
February •••••••

23
25
26
29
31
33
37
41
44
49
63

18
19
20
22
24
26
28
30
33
36
38

28
36
36
35
37
40
48
55
67
66
78

44
49
56
68
71
81
91
106
126
146
177

41
44
46
51
57
62
69
76
82
90
97

25
27
32
35
36

End of month
and year

Total
all
sales
financing

1939 •••..•••••••••••••

100

1940 •.••••..•...•.••••

Retail
automotive

Retail
other
consumers'
goods

Industrial,
cormnercial,
and farm
equipment

'

March ••••••••••

April ••••••••••
)lay ••••••••••••
June •••••••••••

July •••••••••••
August •••••••••
September,.,,,,
October •.••••••

November •••••••

38

38
44
46
49
57

Indexes as of December 31 for the years of 1939, 1940, and 1941 are based on figures reported by
sales finance companies on a supplementary report form which accompanied the regular monthly report form for January 1942. Succeeding indexes are derived by calculating the percentage
changes of the outstanding balances reported by sales finance companies for each month from
those reported by the same companies for the preceding month, and by linking these percentages
to the indexes for the preceding month,

Table 2.--Relative Importance of Loeus Made by Sales Finance Companies
During November 1946 and Outstanding Balances at End of Month
Paper acquired
during month
Class of paper
lunount
Total, all classes of paper

!f....... , ..1£86

Percentage
of total

Outstanding balances,
end of month
Amount

Percentage
of total

258 913

100

S761 803 167

100

Total loans •......•••..•..•.••. • ..••
Small (personal) loans, .........•.
Business loans ••••••••••••••••••••

53,078,4!:13
14,037,945
39,040,548

19
5
14

l4!1,i68,2'l'l
74, 7tH,519
74.706,758

20
10

!f.. , .........

233,180,420

81

612,334,880

80

Total sales financing

10

Included in this classification are only those firms which, in addition to their sales financing

 operations, reported loan activities,


Page 3
SAIBS FIIWICB C<IIPA!liBS

Table 3.-~utomoti~ and Di~rsified Finanol~ b,y Sales Finanoe Companies
Paper Acquired During November lKS and Balanoes Outetcmding at End of Month

r·

Volume of paper acquired
during November l9l6
Clan of

p~tper

By companies

Outstanding
balances
Jlowmber 30,
1946

Ratio paper
acquired to
outetandi,;,
bab.ncee b

By all
campania•
reporting

balances a

62,834,369
144,488,648
6,611,138
26,994,965
1.921.191

$ 62,1U,469
144,123,603
6,4'16,8'16
24,1158,923
1.829.996

$311,590,478
123,326,861
13,006,346
1'16 ,2'16 ,214
11.263.712

20
llT
42
14
20

Total sales financing ••••••••••• $240.'160.201

$238.502.'16'1

$633.452.610

38

Total retail automotive •••••••••••••••••••
Total wholesale automotive ••••••••••••••••
Total wholesale - other than automotive,,,
Total retail - other consumers• goode •••••
Industrial, commerc~al, and fare equipment

•

reporting
outetandi~J

!I

Data are based on figures from sales finance companies able to report both their paper ac~uired and
their outstanding balances.
Ratios obtained by dividing paper acquired (column 2) by outstanding balances (column 3),
Table

of -Cars Financed and Volume of Paper Acquired
by Sales Finance Companies During Jov'ember l9l6

4.--~umber

Number of care
Class of paper
Number

Paper

Percentage
of total

acquired

Dollar
volume

Percentage
of tot&l

484

100

t 63.'139.696!1

oars •••••••••••••••••

22,434
6,'106
40,086
3,268

31
8
66
6

21,018, '106
'1,091,229
23,230,896
2,::198,866

Total wholesale automotive •••••••••••••

123.864

100

ll30 1 418.a2d

100

cars (passenger and commercial),,

104, '189
19,066

85
16

113,45'1,6'14
16,961,250

87
13

Total retail automotive ••••••••••••••••
New passenger care •••••••••••••••••••
}lew commercial cars ..................
Used passenger oars ••••••••••••••••••

Used

l~ew

camu~rcial

Used cars (passenger and commercial).

'11

100
39
"13

43
5

!( Data are based on reports from sales finance compru1ies providing a breakdown of their retail and
wholesale automotive financing, These amounts are less than those reported in table 3 due to the
exclusion of some data for which breakdowns were not available.

Table 5.--Volume of Diversified Sales Financing DuringNovember 1946

Class of paper

of

Retail - other consumers' good111
Furniture, radios, pianos, and other musical instruments ••
Refrigerators and other household appliances ••••••••••••••
Residential building repairs and moderni~ation ••••••••••••
Miscellaneous retail •••....••.•.•••••••.••.•••..•........•

Dollar volume
paper acquired

$25,123 ,193
6,511,138
1,921,191

Total diversified financing •••••••••••••••••••

.32,666,622

•••••••••••••••••••~•

4
6
47

• 1,328,651
1,634,043
16,348,706
6,8ll,89l

Total wholesale- other than automotive •••••••••••••••••••••••
Industrial, commercial, and fa~ equipment ••••••••••••.•••••••

Total retail- other consumers• goods ••••

Percentage
of total

21

!I

77
17
6

100

I

Data are based on reports from sales finance companies providing a breakdown of their retail
financing of other consumers' goods, This amount is less than that reported in table 3 due to the
exclusion of same data for which breakdowns were not available,