Full text of G.20 Sales Finance Companies : April 10, 1953

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM

G.20

A p r i l 1C, 1953
SALES FINANCE COMPANIES
FEBRUARY 1953

R e t a i l f i n a n c i n g — R e t a i l a u t o m o t i v e p a p e r a c q u i r e d by s a l e s f i n a n c e companies i n c r e a s e d 3 p e r c e n t
i n F e b r u a r y , f o l l o w i n g a d e c l i n e of 1h p e r c e n t i n t h e p r e c e d i n g m o n t h . The i n c r e a s e d volume r e f l e c t e d g a i n s
of 1 p e r c e n t i n new p a s s e n g e r c a r p a p e r and 7 p e r c e n t i n u s e d p a s s e n g e r c a r p a p e r ; a c q u i s i t i o n s of commerc i a l c a r p a p e r d e c r e a s e d d u r i n g t h e month. The i n c r e a s e i n t o t a l p u r c h a s e s of r e t a i l a u t o m o t i v e p a p e r was
accompanied by an i n c r e a s e of 3 p e r c e n t i n o u t s t a n d i n g b a l a n c e s d u r i n g F e b r u a r y , Compared w i t h a y e a r
e a r l i e r , o u t s t a n d i n g b a l a n c e s of t h i s t y p e of p a p e r were up a p p r o x i m a t e l y 35 p e r c e n t .
P u r c h a s e s of o t h e r r e t a i l i n s t a l m e n t p a p e r d u r i n g F e b r u a r y were 5 p e r c e n t below t h o s e of t h e p r e c e d i n g month. F u r n i t u r e and t e l e v i s i o n p a p e r a c q u i r e d d e c l i n e d 8 p e r c e n t , and p u r c h a s e s of r e p a i r and
m o d e r n i z a t i o n p a p e r d e c r e a s e d lU p e r c e n t . I n c o n t r a s t , p u r c h a s e s of h o u s e h o l d a p p l i a n c e p a p e r i n c r e a s e d
2 p e r c e n t . Although t o t a l a c q u i s i t i o n s of o t h e r r e t a i l i n s t a l m e n t p a p e r d e c l i n e d d u r i n g F e b r u a r y , b a l a n c e s
o u t s t a n d i n g a t t h e end of t h e month were unchanged from t h e p r e c e d i n g month e n d .
R e t a i l F i n a n c i n g by S a l e s F i n a n c e Companies

C l a s s of r e t a i l p a p e r
Automotive:

Total r e t a i l

P e r c e n t a g e c h a n g e , J a n u a r y 1953 t o F e b r u a r y 1953
O
" u•t s t a n d i n g bba"
alances
Volume of p a p e r
Number
end of month
of c a r s a c q u i r e d d u r i n g month
i l

+ 3

New
Used

+ 9

+ 1
+ 7

Commercial c a r s : New
Used

- 6
+ 1

- U
- 1

Passenger c a r s :

Other consumer goods:

+ 2

+ 3

Total

Furniture, radios, t e l e v i s i o n s e t s , musical instruments
R e f r i g e r a t o r s and o t h e r h o u s e h o l d a p p l i a n c e s
R e s i d e n t i a l b u i l d i n g r e p a i r and m o d e r n i z a t i o n
Miscellaneous r e t a i l

+ 2
-lU
- u

Wholesale f i n a n c i n g — W h o l e s a l e a u t o m o t i v e p a p e r a c q u i r e d by r e p o r t i n g s a l e s f i n a n c e companies i n
F e b r u a r y d e c l i n e d 2 p e r c e n t from J a n u a r y ' s volume, b u t o u t s t a n d i n g b a l a n c e s c o n t i n u e d t o i n c r e a s e . B a l a n c e s
o u t s t a n d i n g a t t h e end of F e b r u a r y were a b o u t 6 p e r c e n t above t h e p r e c e d i n g month end and 15 p e r c e n t above
F e b r u a r y of l a s t y e a r .
P u r c h a s e s of o t h e r w h o l e s a l e p a p e r i n c r e a s e d 15 p e r c e n t i n F e b r u a r y .
c l a s s of p a p e r showed a g a i n of 8 p e r c e n t .

O u t s t a n d i n g b a l a n c e s of t h i s

NOTE:—February d a t a , b a s e d on r e t u r n s from 100 s a l e s f i n a n c e co m p an i es, a r e compiled i n t h e same
manner a s t h o s e shown i n e a r l i e r r e p o r t s . A g g r e g a t e s r e p r e s e n t o n l y t h e t o t a l s f o r t h e r e p o r t i n g companies
and, s i n c e t h e r e p o r t i n g sample i s n o t i d e n t i c a l from month t o month, t h e y a r e n o t comparable w i t h t o t a l s
of p r e c e d i n g m o n t h s .




Page 2
SALES FINANCE COMPANIES

Table 1.—Automotive and D i v e r s i f i e d Financing by S a l e s Finance Companies
Indexes of Outstanding Balances: 191*7-191*9 average = 100 a j

End of month
and year

Total
all
sales
financing

68

1939
1910

Retail
automotive

Wholesale
automotive

55

76
101
111*
28
10
11
H*
32
67
115
190

191*8
19U9
1950
195 1
1952..

92
103
36
11*
12
15
1*0
81
118
155
198
202
21*5

1952-February.
March. . . .
April....
May
June
July
August...
September
October..
November.
December.

196
196
200
206
213
212
210
217
228
236
21*5

253
269
277
278
281
292
301
310

189
199
208
197
181
136
113
11*2
161*
178
192

1953-January..,
February.,

251
258

315
321*

206
218

191*1

1912
19U3

191*1*
191*5

191*6

191*7

*/

92
96
61
22
13
15
1*9
89
138
118
162
197
192

21*8
21*8

310

21*0
238
21*0

Wholesale
other
than
automotive

Retail
other
consumers'
goods

Industrial,
commercial,
and farm
equipment

21*

1*9

100
131
11*7
61
27
23
23
59
89

31*
61
10
2
3
9
55
97
111
81
126
120
111

136

151
152

ia

130
125
119
113
in

no

111

no

120

61*

73
38
15
13
19
52
112
111*
92
87

U

72
71
71
7k
78

116

107
130
151
206

86
89
93
95
99

160
163
168
170
175
183
185
190
199
206
206

99
100

209
210

81*

Indexes as of December 31 f o r the years of 1939, 1940, and 1941 are based on f i g u r e s reported by
s a l e s f i n a n c e companies on a supplementary report form which accompanied the regular monthly r e port form f o r January 1942. Succeeding indexes are derived by c a l c u l a t i n g the percentage
changes of the outstanding balances reported by s a l e s f i n a n c e companies f o r each month from
those reported by the same companies f o r the preceding month, and by l i n k i n g these percentages
t o the indexes f o r the preceding month.

Table 2 . — R e l a t i v e Importance of Loans Made by S a l e s Finance Companies
During F e b r u a r y 1953 and Outstanding Balances a t End of Month

Class of paper

Paper acquired
during month
Amount

T o t a l , a l l c l a s s e s of paper

Business loans

•/

Outstanding b a l a n c e s ,
end of month

Percentage
of t o t a l

Amount

Percentage
of t o t a l

$1,031,968,16k

100

$1,305,193,511

100

75,791,271
21,700,056
51,091,215

7
2
5

290,971.883
184,023,959
106,917,92b

7
h
3

959,176,893

93

L,OIL,221,631

93

Included in t h i s c l a s s i f i c a t i o n are only those firms which, in a d d i t i o n t o t h e i r s a l e s f i n a n c i n g
o p e r a t i o n s , reported loan a c t i v i t i e s .




Page 3
SALES FINANCE COMPANIES

Table 3.--Automotive and D i v e r s i f i e d Financing by S a l e s Finance Companies
Paper Acquired During F e b r u a r y 1953 and Balances Outstanding a t End of Month
Volume of paper acquired
d u r i n g F e b r u a r y 1953
Class of paper

Total w h o l e s a l e - other than a u t o m o t i v e . . .
Total r e t a i l - other consumers 1 g o o d s . . . . .
I n d u s t r i a l , commercial, and farm equipment

a/
b/

Outstanding
balances
F e b r u a r y 28,
1953 a /

R a t i o paper
acquire# t o
outstanding
balances ty

By a l l
companies
reporting

By companies
reporting
outstanding
balances a /

$353,691,k06
558,105,986
13,302,156
29,350,780
16.096,989

$353,1U2,10I1
557,916,135
13,280,071
29,099,02li
16,096,989

$2,980,021,125
575,167,072
37,793,677
316,1*65,912
159,265,531

12
97
35
9
10

$970,550,617

$969,561,323

$1*,068,713,617

2h

Data are based on f i g u r e s from s a l e s f i n a n c e companies able t o report both t h e i r paper acquired and
t h e i r outstanding b a l a n c e s •
R a t i o s obtained by d i v i d i n g paper acquired (column 2) by outstanding balances (column 3 ) .
Table 4.—Number of Cars Financed and Volume of Paper Acquired
by S a l e s Finance Companies During F e b r u a r y 1953

Paper

Number of cars
Class of paper
Number

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

Percentage
of t o t a l

271,188

100

91,291
12,201
153,989
13,707

3U
h
57
5

299,150

100

260,545
38,905

87
13

acquired

Dollar
volume
$31*5,1*1*9,163 a /
165,212,123
18,629,1*51*
150,890,805
10,686,U8l
$551,035,215 a /
515,191,992
38,81*0,223

Percentage
of t o t a l
100
U8
5
hh
3
100
93
7

a / Data are based on reports from s a l e s f i n a n c e companies providing a breakdown of t h e i r r e t a i l and
wholesale automotive f i n a n c i n g . These amounts are l e s s than those reported in t a b l e 3 due t o the
e x c l u s i o n of some data f o r which breakdowns were not a v a i l a b l e .

Table 5 .—Volume of D i v e r s i f i e d S a l e s Financing During F e b r u a r y 1953

Class of paper
R e t a i l - other consumers 1 goods:
F u r n i t u r e , r a d i o s , p i a n o s , and other musical i n s t r u m e n t s . •

of

Dollar volume
paper acquired

Percentage
of t o t a l

$ 8,871,91*0
7,551,1*93
3,293,126
7,331*,1*1*7

16
13
6
13

$27,051,006 a /
13,302,1*56 ~
16,096,989

hs
2h
28

$56,1*50,1*51

100

Data are based on r e p o r t s from s a l e s f i n a n c e companies providing a breakdown of t h e i r r e t a i l
f i n a n c i n g of other consumers* goods. This amount i s l e s s than t h a t reported i n t a b l e 3 due t o the
e x c l u s i o n of some data f o r which breakdowns were not a v a i l a b l e .