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FEDERAL RESERVE BANK O F DALLAS Dallas, Texas, August 7, 1943 To the Registrant addressed : PROVISIONS OF REGULATION W REGARDING USED AUTOMOBILES It has come to our attention that some lenders and sellers, who are regis tered under Regulation W, may have a misunderstanding regarding the amount of credit which may be granted in connection with the purchase of a used automobile. Regulation W provides that credit extended in connection with the pur chase of a used automobile shall not exceed two-thirds of the cash price or two-thirds of the “ appraisal guide value,” whichever is lower. This applies to credit extended by a seller or by a lender, and a Registrant may not pur chase notes which do not comply with the Regulation. In some instances, it appears that more credit is being granted than is permitted by the Regula tion because sellers and lenders are not using appraisal guides in calculating the amount of credit that may be extended. There is shown on the reverse side of this letter a list of appraisal guides which have been designated by the Board of Governors of the Federal Reserve System for use in this district, together with the names and addresses of the publishers. This bank does not furnish appraisal guides. Yours very truly, R. R. GILBERT President F09VICTORY This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) LIST OF APPRAISAL GUIDES DESIGNATED FOR USE IN THE ELEVENTH FEDERAL RESERVE DISTRICT, AS INDICATED KELLEY BLUE BOOK Published by Kelley Kar Co., 1221 S. Figueroa St., Los Angeles, Calif. ARIZONA OFFICIAL BLUE BOOK NEW AND USED CAR GUIDE Published by National Used Car Market Report, Inc., 1315 S. Michigan, Chicago “A ” and “ B” Editions Entire United States except the states of Arizona, California, Idaho, Nevada, Oregon, Utah, and Washington. RED BOOK NATIONAL USED CAR MARKET REPORT Published by National Used Car Market Report, Inc., 1315 S. Michigan, Chicago Entire United States except the states of Arizona, California, Idaho, Nevada, Oregon, Utah, and Washington. OFFICIAL AUTOMOBILE GUIDE— Price Edition Published by Recording & Statistical Corp., 102 Maiden Lane, New York, N. Y. Entire United States except the states of Arizona, California, Idaho, Nevada, Oregon, Utah, and Washington. N.A.D.A. OFFICIAL USED CAR GUIDE Published by National Automobile Dealers Ass’n., 210 S. 7th St., St. Louis, Mo. District “EF” Edition LOUISIANA Following county in TEXAS— Bowie BLUE BOOK NATIONAL USED CAR MARKET REPORT— Executive Edition Published by National Used Car Market Report, Inc., 1315 S. Michigan, Chicago “ Retail sales values” for Zone No. 2 LOUISIANA District “ J” Edition “ Retail sales values” for Zone No. 4 OKLAHOMA TEXAS (except Bowie County and the 6 counties for which District “ K” edi tion is designated) District “ K” Edition NEW MEXICO Following 6 counties in TEXAS: Brewster, Culberson, El Paso, Hudspeth, Jeff Davis, and Presidio District “ L” Edition ARIZONA TEXAS (except the 6 counties for which “ Retail sales values” for Zone No. 5 are designated) “ Retail sales values” for Zone No. 5 NEW MEXICO Following 6 counties in TE XAS: Brewster, Culberson, El Paso, Hudspeth, Jeff Davis, and Presidio “ Retail sales values” for Zone No. 6 ARIZONA For 1934 and older models of automobiles the maximum credit value is 66 2/3% of the cash purchase price. In calculating the credit value of a used automobile Regulation W does not permit the extension of additional credit on account of accessories such as radios, heaters, etc., but does permit additional credit for automobiles with overdrive or automatic transmission as extra equipment.
@FedFRASER