Full text of G.20 Sales Finance Companies : April 11, 1952

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7

77CP

BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
G.20

April 11, 1952
SALES FINANCE COMPANIES
FEBRUARY 1 # 2

Retail financing—The volume of retail automotive paper acquired during February was 3 per cent
below the preceding month*s volume, according to sales finance company reports on February operations • A
10 per cent drop in purchases of new passenger car paper continued a decline in monthly acquisitions of this
type of paper which has been uninterrupted since last August. Purchases of used passenger car paper, however,
increased 4 per cent during the month# In the commercial car segment, the financing of new vehicles decreased
3 per cent in February, while used car financing was unchanged. Outstanding balances of retail automotive
paper continued the rather steady downward movement of the previous four months, and at the end of February
were 1 per cent below the level of January 31.
The financing of other consumer goods by sales finance companies also declined during February. A
decrease of 9 per cent in total purchases of paper of these goods reflected declines in all segments of this
class of paper® Outstanding balances on this type of paper declined 2 per cent during February, about the
same rate as in the preceding month.
Retail Financing by Sales Finance Companies

Class of retail paper
Automotive:

Percentage change, January 1952 to February 19^2
Number
Volume of paper
Outstanding balances
of cars acquired during month
end of month

Total retail

Passenger cars:

- 1

New
Used

-13
+ 2

-10
+ u

Commercial cars: New
Used

- 5
- 2

- 3
0

Other consumer goods:

Total

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

- 2
-19
- 3
- 8
- 5

+hA v n i a u t o m o t i v e
paper acquired during February was substantially above
the volume of the preceding month. Wholesale automotive balances outstanding increased moderately during
*t/ii@ month •
Purchases of wholesale paper other than automotive increased very sharply during February,
rise in volume was accompanied by a large increase in outstanding balances of this type of paper.

The

NOTE.—February data, based on returns from 10b sales finance companies, are compiled 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
01 preceding months •




Page 2
SALES FINANCE COMPANIES

Table 1.—Automotive and Diversified Financing by Sales Finance Companies
Indexes of Outstanding Balances; 19U7-19U9 average = 100 a /

End of month
and year

Total
all
sales
financing

68
92
103
36

1939
19U0
19U1
19U2
1913
19UU

Ik

12
15

191*5
191*6
191*7
191*8
191*9
195 0
1951

81
118
155
198
202

1951-February.,
March....,
April....
May
June......
July.....
August...
September
Octobero.
November.
December.

19l*
197
200
202
205
202
203
203
203
203
202

1952- January..
February.

196

1*0

196

Retail
automotive

Wholesale
automotive

^

Wholesale
other
than
automotive

Retail
other
consumers'
goods

Industrial,
commercial,
and farm
equipment

2k
3k

k9
6k

100
131
1U7
61
27
r 23
23
59
89
116
107
130
151

Ik

55
92
96
61
22
13
15

21*8
21*8

89
138
118
162
197

61
10
2
3
9
55
r 97
111
81
126
120

209
219
221
203
185
178
186
196
197

186
222
231
220
202
181
156
1U7
139
130
120

82
79
77
76

75

13U
125
136
138
lUo
1U3
1U6
1U9
1U9
150
151

116
136

73
72

156
160

76
101
11U
28
10
11

k9

32
67
115
190

m

238
21*1
21*5
21*8

253
256
251*
251
21*8

21*3
21*0

rl8l

189

73
38
15
13
19
52
112
rllU
92
87
75

Ik

72
73

Ik
Ik
Ik

y

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. Indexes have been converted to a 19U7-19U9 base from
the December 31, 1939 base previously used. Back figures by months are available upon request,
r—Revised.
Table 2.—Relative Importance of Loans Made by Sales Finance Companies
During February 1952 and Outstanding Balances at End of Month

Outstanding balances,
end of month

Paper acquired
during month
Class of paper

Percentage
of total

Amount

Percentage
of total

$81*6,921,719

100

$3,625,261*, 937

100

Total loans
Small (personal) loans.
Business loans

81,988,929
27,316,596
51*,672,333

10
3
7

266,520,333
150,323,986
116,196,31*7

7
U
3

Total sales financing e/.

761*, 932,790

90

3,358,7W*,601*

93

Total, all classes of paper a /

±nciuaea. jlu vjiao
j. v
»
~
operations, reported loan activities.




Amount

Page 3
SALES FINANCE COMPANIES

Table 3.--automotive and Diversified Financing by Sales Finance Companies
Paper Acquired During February 1952 and Balances Outstanding at End of Month

Volume of paper acquired
during February 1952
Class of paper

By all
companies
reporting

Total retail automotive
Total wholesale automotive .
Total wholesale - other than automotive..,
Total retail - other consumers1 goods
Industrial, commercial, and farm equipment
Total sales financing

b/

By companies
reporting
outstanding
balances a/

Outstanding
balances
February 29,
1952 a/

Ratio paper
ecquired to
outstanding
balances \>/

$298,107,052
U25,117,61*8
l6,905,kl0
23,739,506
12,987,35k

$295,550,803
li22,52lt,662
16,37k,323
21,899,106
12,767,68k

$2,k89,kkk,9k5
5kk,6l3,957
kl,k69,kl7
217,666,688
119,338,293

12
78
39
10
11

$776,856,970

$769,116,578

$3,kl2,533,300

23

their outstanding balances.
Ratios obtained by dividing paper acquired (column 2) by outstanding balances (column 3).
Table 4.—Number of Cars Financed and Volume of Paper Acquired
by Sales Finance Companies During February 19£2

Number of cars

Paper

acquired

Class of paper
Number

Percentage
of total

Total retai 1 automotive

239,2k5

100

New passenger cars
New commercial cars

67,919
10,038
Ik8,2k7
I3,0kl

28
li
62
6

.......

2k3,2k8

100

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

189,165
5k,083

78
22

Used commercial o a r s . . . . . . . . . . . . .
Total wholesale automotive

Dollar
volume

$25k,797,775 a/
103,2k3,833
I5,96l,k75
125,k02,688
10,189,779
$1(19,279.725 a/
366,658,699
52,621,026

Percentage
of total

100
la
6

h9
h
mo

87
13

f / Data are based on reports from sales finance companies 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 During February 19f>2

Class of paper

of

Retail - other consumers* goods:
Furniture, radios, pianos, and other musical instruments..
Refrigerators and other household appliances..............
Residential building repairs and modernisation.
Miscellaneous retail
Total retail - other consumers' goods
Total wholesale - other than automotive.
Industrial, commercial, and farm equipment
Total diversified financing

.

Dollar volume
paper acquired

Percentage
of total

$ 6,k03,789
6,kk9,7kl
2,712,k6k
6.898.2k3

12
13
5
13

$22,k6k,237 a/
I6,905,kl0
12,987,35k

1*3
32
25

$52,357,001

100

J 7 D a t a 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 some data for which breakdowns were not available.