Full text of G.20 Sales Finance Companies : April 12, 1951
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VYwv*-O BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM G.20 April 12, 1951 SALES FINANCE COMPANIES February 1951 Retail financing—Automobile and other retail instalment paper acquired in February was somewhat lower in volume than in January, according to the reporting sales finance companies. Outstanding balances held by these companies continued to decline for both classes of paper. The 11 per cent decrease in the automobile sector, as shown in the table below, reflected declines in the financing of all types of vehicles, the largest drop being in the financing of new passenger cars# level. Retail financing of goods other than automotive was down 12 per cent from the January Reduced volume was reported in all classes of paper purchased during the month. Retail Financing by Sales Finance Companies Class of retail paper Percentage change, January 1951 to February 1951 Outstanding balances Volume of paper Number end of month acquired during month of cars -10 -11 New Used -20 - 7 -18 - 5 Commercial cars: New Used -20 -11 -16 -13 Automotive: Total retail Passenger cars: Other consumer goods: Total Furniture, radios, musical instruments Refrigerators and other household appliances Residential building repair and modernization Miscellaneous retail -12 - 2 zJ. - 8 - 8 -25 -11 Wholesale financing—Wholesale automobile paper purchased in February declined moderately during the month, reflecting primarily declines in the wholesale financing of new vehicles. Outstanding balances of wholesale automotive paper rose by a small percentage. Wholesale financing of goods other than automobiles was also down for February, and outstanding balances on this class of paper continued to rise at a substantial rate. NOTE.—February data, based on returns from 116 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 of preceding months. Page 2 SALES FINANCE COMPANIES Table 1 .—Automotive and Diversified Financing by Sales Finance Companies Indexes of Outstanding Balancess December 31, 1939 « 100 a / End of month and year Total all sales financing Retail automotive Wholesale other than automotive Wholesale automotive 1939 100 100 100 19lil 192*2 191*3 191*1* 191*5 191*6 191*7 191*8 191*9 1950 i § 132 11*9 37 13 15 169 175 112 191*0 53 20 18 22 59 119 1950-February. March.... ,234 237 22*0 250 263 266 April.... May...... June..... July..... l*o ho 2k 18 8 11 27 90 163 U2 258 223 265 20k 2% 202 228 27k 186 298 31k 163 179 192 39 105 176 172 172 August... September October.. November. December. 27h 322 291 291 330 331 328 325 296 516 1951-January.. February. 287 286 320 291 61*8 315 282 288 26 398 1*85 537 537 1*99 1*36 216 296 325 100 129 U|8 76 30 38 221* 391* 15* *1 332 516 252 Hi 291 100 1U0 250 Retail other consumers' goods 1*21* 1*22 1*35 2U0 280 1*78 306 759 226 232 187 177 Ilk 179 3 192 188 182 177 171 166 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 Loans Made by Sales Finance Companies During February 1951 and Outstanding Balances at End of Month Class of paper Paper acquired during month Amount Outstanding balances, end of month Percentage of total Amount Percentage of total $765,197,226 100 $3,1*77,179,873 100 66,936,390 17,181,372 19,155,018 9 2 7 187,71*5,313 87,966,811 99,778,502 5 2 3 698,260,836 91 3,289,1*31*,560 95 Included in this classification are only those firms which, in addition to their sales financing operations, reported loan activities. Page 3 SALES FINANCE COMPANIES Table 3.-.-Automotive and Diversified Financing by Sales Finance Companies Paper Acquired During February 1951 and Balances Outstanding at End of Month Volume of paper acquired during February 1951 Class of paper By all companies reporting By companies reporting outstanding, balances a/ Outstanding balance February 28, 1951 a/ Ratio paper acquired to outstanding balances ty $210,21*8,299 117,551,992 22,292,026 Total wholesale - other than automotive... 1 18,782,169 Total retail - other consumers goods..... 8,958,286 Industrie!, commercial, and farm equipment $208,916,812 416,033,188 21,200,530 17,362,575 8,821,26b $2,1*59,041,153 471,516,589 56,611,679 251,284,417 99,848,153 9 95 37 7 9 8707,832,772 $702,337,369 $3,338,301,991 21 a./ Data are based on figures from sales finance companies able to report both their paper acquired and their outstanding balances. b/ 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 1951 Paper Number of cars Class of paper acquired Dollar volume Percentage of total Number 212,958 100 $202,681,234 V 65,931* 9,557 127,658 9,809 31 hh 60 5 88,946,865 14,130,271 92,574,913 7,029,185 277,788 New cars (passenger and commercial).. Used cars (passenger and commercial). Percentage of total 100 $440,887,268 V 100 245,806 31,982 88 12 h 407,922,744 32,964,524 100 7 1*6 3 93 7 a/ 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 1951 Class of paper Retail - other consumers1 goods: Furniture, radios, pianos, and other musical instruments.. of Dollar volume paper acquired Percentage of total $ 5,1*98,390 4,988,613 1,645,723 5,570,393 11 10 3 12 $17,703,119 a/ 22,292,026 8,958,286 he $48,953,431 36 18 100 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 some data for which breakdowns were not available#
