Full text of G.20 Sales Finance Companies : July 30, 1945

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM

t

July 30, 1945
R&S sfo - 5

SA.LF.S FINANCE COKP~IES

JUNE 1945

The number ot used paeeenger ·care tiaanoed by eaiee fiaanoe companies wae 10 per oent
larger in June than in the preoeding aonth while the dollar volUM ot paper p.urchaeed rose 14 per
oent. The ll per oent decline in number of Mw paasenpr oars tiaanced during JUII8 wae accompanied
by a lllll&ll decrease in dollar amount ot paper acquired. Fiaancing· ot II8W cCIIIiiercial vehicles, in
June was substantially above that in Jfay, w1 th gains ot 26 ,per cent in number and 16 per cent in
dollar volU1118 ot acquirements. The number ot und c0111111ercial vehicles finanef!d rose lo per cent
during June and the value ot paper acquired increased
8 .per cent.
.

.

Retail automotive paper outstanding at sales finance companies on JUII8 30 wae 2, per cent
larger than at the end ot the preceding month but the index, shown in the chart below, remained
unchanged at 14.
Retail Automotive Fiaancing by Sales Finance Companies
Outstanding Balances at Bnd ot Month, December 31, 1939 • 100
INDEX

INDEX

.....

200

r----------r----------~--------,---------~----------,200

150

100
50
0
1941

1942

1943

1944

Wholesale autcmotive outstandings held by sales finance companies decliMd further during
June and at the end of the aonth were 4 per cent below the amount held on May 31. Acquirements ot
paper arising trCllll wholesale salu ot new passenger and cCIIIIII8rcial vehicles in JUII8 were as per cent
larger than in the preceding 11onth, while the dollar volume ot wholesale transactions in used
pasaenpr and commercial vehicles decreased 18 per cent.
The volume ot retail diversified tiiWlcing in June was 13 per cent above that in the
preceding aonth and balances outstanding wre up 5 per cent. Paper arising f5.J"-..ol:lllii!OIIw&:....:
furniture, radios, and musical instrUMnts amounted to 6 per cent leas than acqui~
in lofa
while the volume baaed on sales ot retrigeratora and other household appliance
c Md nearly
14 per cent during the 11onth. Residenti-al repair and modernisation paper acquired in June showed
·an increase of 14 per cent over the preceding month.
f

~~
WT7
e,.;... P

Wholesale automotive paper acquired during JUII8 amounted to about 42 per cent of the
balances outstanding at the end of the month. Retail autClllloti ve paper purchased was 19 per cent ~toDd
other retail oonsUIII8r paper aoquired 14 per cent of the respective balances outstanding on June 30.
The volume of industrial, camMrcial, and tara equipaent paper acquired was equivalent to only 5 per
cent of the balances outstanding at the end of June.
·
·

Note 1 June data, baaed on returns frCllll 176 aaiea finance oompaiiiea, .are ocapiled in tiut
·same manner aa those shown in earli.er reports. Aggregates represent C?nly the totals tor' the reporting companies and, since the reporti:ag sample 1a not identical from month to month, they ate
not comparable w1 th totals of preceding aontha.



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SALES FINANCE COIIPANIIS .
' .<

. ·._
.
.-·_ .
.
'table 1.--.Automothe and. Dhersitied Financing by Sales Fi:il.&.noe Companie.a
Indexes of Outstanding Balances& December 31, 1939 • lOO !j .it

.

'

..

.

-y··

~

Retail
automotive

Wholesale
automotive

Wholesale
other
than
automoti w

Retail
other
conswners'
goods

Inclustrial,
commercial,
and f-arm
equipment

100

100

100

100

100

100

1940 ••••••••••••••••••

136

132

169

140

129

131

1941 ••••••••••••••••••

162

149

17&

260

148

14'1

194-2 ••••••••••••••••••

63

3'1

112

40

'16

81

1943 ••..••••••••••••••

20

13

40

8

30

2'1

1944 ••••••••••••••••••

18

16

24

11

26

26

24
24
24
26.
26
26
26

32

End of month
and year

1939 ••. ..•..••••••••••

Total
all
sales
financing

.

194t- June •••••••••••
July~···•••••••

Aucuat •••••••••
September •• ••••
October ••••••••
lowaber •••••••
Deoember •••••••

1946 - JIIDU&I')' • • • • • •- • •

February •••••••
lla:roh. ••••••••••
April ...........
Jla.y •• •••••••.•••

June •••••••••••

19
19
19
19
19
18
18
18
18
18
18
18
18

.

-

-

..

16

M

11

16

18
16
16
16
16

29
26
26
24
23
24

10
10
12
10
10
11

16
14
14
14
14
14

26
26
26
26
26
24

14
16
18
1'1
16
16

'

26
26
26
2'1
28
-29

33

2'1
2'1
2'1
26
23
2'1
26
30
32

28
2'1

\

Indexes as of December 31 for the years of 1939, 1940, and 1941 are baaed on figures reported by
sales finance companies on a, au.,plementary report form which accompanied the regular monthly report fol'lll for January 1942. Succeeding indexes are derived by calculating the percentage
chan~!l of the out.standing ba],anqes r~ported by sales finance companies for each month from
those 'reported by the same ct!llllpan'ies for the preceding month, and by linking these percentages
to the indexes for the precedtng,m~nth.
I

Table 2.-.;.Relathe Importance of Loans Made by Sales Finance C~panies
~ring
J a 1946
and Outstanding Balances at End of Month

Paper acquired
during month

\

Class of' paper
_Amount

balances,
end oi' month

Out~tanding

Percentage
of total

Amount

Percentage
of total

Total, all classes of paper ~··••••••

182,664,696

100

1295,964,064

100

Total loans ••. ....•••..•..•••.....••
Smalt.(personal) loans •••••-••••• , ,
Buaine=se· loans • • ·•..• • ................

38,013,64'1

ol6

31

29,64'1;611

36

90!804:!668
46,916,.148
44,829,420

Total s_alea financing ·~ ••••••••••••

44,561,04:8

64

205,149,486

69

a.ass.OM

10

16
15

Included in thh classification are only those firms whioh, in add! tion to their sales financing


operations, reported loan activitie••


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Page 3

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SALES FINANCE COIIPANIIS

•

.-.

Table 3.--Automotiw and Diversified Financing by; Sales Finance Companies
January 1942 • 100 3{
lMt

ITEJ4

l

. ~. o..

•

.p
g,

.p

rZ 8

••

!

j

•

~

If

... :.. ·i' J
•

i

RETAIL AUTOMOTIVE
Total number or cars financed •••• ~ ••••••••••••••••• 39 39 3'1 30 32
Total volume of paper acquired••••••••••••••••••••• 51 51 48 -&0 -&2

t

i·~-

1

I~
'~

!
:,..._

:

I

.

!I
J:

19t5

New passenger oars ••••••••••••• Number ••••••••••••

9

Paper acquired ••••

lS

New commercial cara ••••••••.•••• Number • •••••••••••
Paper acquired ••••

6
8

6
8

" " "
6

6

5

s a
6

"

2

s

s

.so
38

2

11

M

39 -&6
2·

" ""

2

s

9 16 18 so 2'1 22 so 22 18 26 28 so 38
lS 16 20 2-& 22 19 26 21 1'1 2-& 24 26 so

Used passenger cars •••••••••••• :Number •••••••••••• 46 -&6 -&2 M S6 32 2'1 26
Paper acquired •••• 62 64 69 -&8 61 -&6 S'T 36

2'1 S6 as M S'T
3'1 -&8 -&6 -&6 6S

Used commercial oars ••••••••••• ~umber •••••••••••• 12 11 12 16 16 u 22 17 15 19 18 18 20
Paper acquired •••• 26 2-& 2S :n M 28 46 36 so .a 35 37 n
WHOLESALE AUTOMOTIVE
(Paper acquired)

i

'

Total volume of paper acquired ••••••.••••••••••••••
(pas~enger

16 10 12

and commercial) ••••••••••••••

5

Used oars (passenger and oollllll8roie.l) •••••••••••••

"'

!few oars

DIVERSIFIED FINANCING
('Paper acquired)

12

Total retail, other consumers'

goods••••••••··~··

,.,

F'urni ture. radios, musi oal instruments ••••••••• 21

-&5

56 66

12

1-&

'.

~

46

-

~9

""58

4:5
59

21 22 23 29 23 2-&
"

Refrigerators and other household appliances •••

12

5
5
"
"
"
"
-&0 51 -52 6'1 66 65

Total diversified.financing •••••••••••••••••••••••• 3'1 35 -&3 u

.....

29 26 u 24 32
S'T S3 Sl Sl n

16 16 18 16 15 15
,6
71

"63

1'1 11 18 13 1'1 1-&

'

Total wholesale, except automotive •••••••••••••••
Industrial,

oon~ercial,

and

fa~

58

"

equipment ••••••• 68

38

5

5

'1

'TO

68

56

4:9 51 51 58

-&8 65 63 66

1-&

'75

2'7 19 26 26 28 2'1

.·'

1'1 16 22

Residential building repairs and modernization. 29 118 14:2 131 136 133 114 99
Miscellaneous retail •••••• , ••••••••••••.•••••••

6
"
'13 80

2-&

as

28

9t 114 ~29 151 11.'12

61 99 116 113 139 .0'1 112 15-& 14:3 ~'19 13'1 ~?1
3

"

3

63 62 -&8

5

" 36

68

6

13

39

M

.,

10

8

55 206 ~22

9

9

63 60

lndexes are derived by calculating the percentage changes in the number of oars financed or the
volume of paper acquired by sales finance companies during eaoh month from the number of oars
financed or the volume of paper acquired by the same companies during the preceding month, and by
linking these percentages to the indexes tor the preceding month. The indexes tor "Total retail
automotive," "Total wholesale automotive," and "Total retail, other consumers' goode" are based on
all figures reported tor these items regardless of whether or not bre~downs could be supplied.



I

.

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SAID FIHAJICB ·CCJIPAliiES

Table 4,--Automoti~
Paper Acquired During

Financing u,y Sales Finanoe Companies
and Balances Outstanding at End of Jlonth

~d Di~rsified

JUlie

1M6

Volume of paper aoqu'ired
durirag JUDe 1M6
Clan of paper

By companies

By all
oompanies
reportirag

reporting
outstandi:J
balances a

Outstanding
balances
JUlie

so,

194.6 ~

Ratio paper
eoquired to
outstandi,;,
.blllanoea b

Total wholesale- other than automoti~ •••
Total retell - other consumers' goods.,,,,
Industrial, commercial, and fa~ equipment

t22,706,815S
16,9'1'1,690
1580,899
8,080,6.'11
261,819

t22,205,604.
16,M6,070
M8,802
7,8'115,019
26151104.

tllT ,0'18,840
158,086,4.04.
l,Oll,9M
66,200,9158
4.18401808

19
4.2
M
14.
6

Total sales financing •••••••••••

t4.'1,158'1,1512

....8,4.215,4.99

t216,21'1,'184

21

Total retai 1 autCIIloti ve •...•••• , ••.•••••.••
£otal whole sale automotive • • ·• .•••..•••••••

'

!( Data are baaed on figures from sales finance companies able to report both their paper acquired and

y

their outstanding balances.
.
·
Ratios obtained u,y dividing paper acquired (column 2) by outstanding balances (column 3).
Table

6.--~umber

ot cars Financed and Volume of Paper Acquired.
JUDe 1M6

u,y Sales Fi11anoe Companies During
!!lumber of oare

ClaBI of paper
Number

Total retai 1 automot1 w • ••••.•••••••••••

M,604.

Bww passenger oar••••••••••••••••••••

128

Jew commercial cars ••••••••••••••••••

Paper acquired
Dollar
volume

Percentage
of total

Peroentege
of total

100

100

~

'161

161,168
9221807
17,816,8lf
8150,889

1
6
90

152,4.62
1,269

M

•••••••••••••

19,092

100

tl15,882,4.'19

100

New oars (passenger and commercial) ••
Used oars (passenger and commercial).

9,1570

4.9
61

8,24.8,296
1 ,4.M,l84o

4.8

9, '122

Uaed passenger care ••••••••••••••••••
Used commercial oars •••••••••••••••••

Totel wholesale

automoti~

'

"

M

!/ Da~a

y

are based on reports from sales finanoe companies providing a breakdown of their retail and
wholesale automotive financing, These amounts are less than those reported in table 4. due to the
exclusion of some data for which breakdowns were not available.
Le11 than one halt of 011.1 per oent.

Table 6,--Volume of Diversified Sales Financing During J\11111

19f6

Dollar vol'lllll8
ot paper acquired

Cla11 of paper
Retail -.other consumers• goodea
Furniture, radios, pianoe, and other mueioal inetrumenta ••
Refrigerators and other household applianoea,,,,,,,,,,,,,,
Residential building repair• and modernisation ••••••••••••
Miaoellaneoua retail ••••••••••••••••••••••••••••••••••••••
Total retail- other oonaumera• good••••••••••••••••••••••••••
Total wholesale - other than automotl w •••.•..••.•..•..••• ...•.
Industrial, oOIIIDIIroial, and tarm equiplll8nt.,,,.,.,,, •.•,, •• ,,.,

Total diversified tinanoing, •• ,,,,,,,,,,,,,,,.

•

84.8,1510
296,4.84.
&,160,900
1,862,011

t7,M8,T06
180,899
281,819
.8,689,2215

Percentage
ot total
10

"

80
19

!/

915

"s

financing ot other consumers' goods,

'

...
.~

'~

100

!( Data are baaed on reports fraa sales tinanoe companies providing a breakdown of their retail
This amount is less than that reported in table 4 due to the
were not available.

 exclusion of some date tor whioh breakd011Jll
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