Full text of G.20 Sales Finance Companies : April 2, 1948

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM

!

'.,»

G.20

April. 2, 1948
SALES FINANCE CO:MPANIES

FEBRUARY 1948

,._

'-

.

Retail financing.--The February volume of total auto100bil.e :financing showed little
change .from that o:f January while other retail :financing registered a sharp decline. Although
the volume o:f new paper acquired did not increase in February, outstanding balances on both autoJOOtive and other retail instalment :financing continued to expand slightly.
The increased unit volume o:f financing o:f used passenger cars and of new and used commercial vehicles offset the 10 per cent drop in the number of new passenger cars financed in
February. Production :for domestic use of new passenger cars was also down 10 per cent in
February.
The decline of l5 per cent in the :financing of consumers• goods other than automotive
reflected decreases in all classes o:f paper except that arising from sales o:f re.frigerators and
other household appliances. The largest percentage drop was in the :financing of residential
repair and modernization activity.
Retail Financing by Sal.es Finance Companies

Class of retail instalment_paper
Automotive:

Total retail

Percentage chanlte. January 19 !t8 to February 1948
Number
Volume of paper
outstanding balances,
o:f cars
aqquired during month
end of month

.!..£

=..J:

Passenger cars:

New
Used

-10
+ 9

-12
+ 9

Coumercial cars:

New
Used

+ 7
+ 2

+
+

Other consumers • goods:

Total

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

±..1!

...
...

4
7

...
...

~

.!...!

-12
+ 2
-20
-13

...
...
...
...

Wholesale :financing.-wholesale transactions in 100tor vehicles were down but transactions in nonautomotive goods were up in February compared with the January volume. outstanding
balances on these two types of financing continued to eJq>and.
Ratio of paper acquired to balance outstanding.--The ratio of paper purchased during
the month to balances outstanding at the end of the month decreased 4 percentage points to 30 for
February •

....
Note. February data, based on returns .from 134 sales finance companies, are compiled
in the same manner as those shown in earlier reports. Aggregates represent only the totals tor
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 Balances: December 31, 1939 • 100 ~
Wholesale
other
than
automotive

Retail
other
consumers'
goods

Industrial,
commercial,
and farm
equipment

100

100

100

100

132

169

140

129

131

152

149

175

250

148

147

1942 ••••••••••••••••••

53

37

112

40

76

61

1943 •••.••••••••••••••

20

13

40

8

30

27

1944 ••••••••••••••••••

18

15

24

11

26

26

1945 ..................

22

18

27

38

39

23

1946 ••••••••••••••••••

59

42

90

224

105

59

1947 ..................

119

88

163

394

226

89

1947-February •••••••••

68
73
78
82
87
91
94
100
105
111
119

48

105
111
110
106
111
109
103
122
124
138
163

287
325
341
351
346
336
333
321
310

116
124
136
145
157
168
180
192
206
218
226

61
68
67
70
71
74
87
86
92
89
89

End of month
and year

Total
all
sales
financing

1939 •••..•••••••••••••

100

100

1940, •••••••••••••••••

136

1941 ..................

March ••••••••••••
April ••••••••••••
:Uay ••• • • • • • • • ....
Jllile • ••••••••••••
July .............

August ...........
September ••••••••
October ••••••••••
November •••••••••
December •••••••••

Retail
automotive

Wholesale
automotive

53

58
62
66
69
72

15

79
83
88

359
394

229
92
167
426
92
1948-January ••••••••••
123
230
February •••••••••
171
94
127
96
445
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 Loaus Made by Sales Finance Companies
During February 1948 and Outstanding Balances at End of Month
Outstanding balances,
end of month

Peper acquired
during month
Class of paper
Amount

Percentage
of total

Amount

Percentage
of total

Total, all classes of paper ~·······•

$484,642,270

100

$1.643.936.049

100

Total loans .........................
Small (personal) loans •••••.•••• ,,
Business loans •••.••••••••••••••••

43z4llzo86
11,900,314
31,510,772

9

2
7

17222122567
65,731,186
106,484,381

Total sales financing~ ............

441,231,184

91

1,471,720,482

10
__
4____
6

90
----

Included in this classification are only those firms which, in addition to their sales financing
operations, reported loan activities,



Page 3
SAU:S FIHAICB COIIPAIIIBS

Table 3.-~vtODDti~ and Di~rsified Financing by Sales Finance Companies
Paper Acquired During February 1948 and Balances Outstanding at End ot Month
Volume of paper acquired
during February 1948
Clan of paper

By all
campaniea
reporting

..

reporting
outatandi!J
balances a

$130,753,380
276,020,609
11,846,533
Total wholesale- other than automotive.,,
26,978,149
Total retail- other consumers• goods •••••
8,393,726
Industrial, commercial, and farg equipment

$128,851,108
274,467,954
11,831,822
26,869,471
8,240,813

$453,992,397

$450,261,168

Total ret&il automotive •••••••••••••••••••
Total wholesale automotive ••••••••••••••••

I-t·

By campanies

Total

sa~es

financing •••••••••••

Outstandinr;
ba.lances
February 29,

1948!/

•

Ratio paper
acquired to
outstandi,;,
belancea b

775,696,487
270,929,936
33,506,086
365,812,1!,l
70,346,950

17
101
35
7
12

$1,516,291,600

30

!t'

Data are based on figures from sales finance companies able to report both their paper ac~uired and
their outstanding balances.
~ Ratios obtained by dividing paper acquired (column 2) by outstandine balances (column 3),

I

Table 4 ,--llumber of -Care Financed and Volume of Paper Acquired
by Sales Finance Companies During February 1948

'~

Nwnber of cars
Class of paper

...

--·

Paper

acquired

Nwnber

Percentage
of total

Dollar
"Volume

Percentage
of totel

Total retail automotive ••••••••••••••••

108.1U2

100

100

New passenger care •••••••••••••••••••
New commercial cars ••••••••••••••••••
Used passenger cars ••••••••••••••••••
Used c~~roial cars •••••••••••••••••

37,404
8,211
58,528
4,336

34
8
54
4

&19!1.682.228 !I
48,086,601
12,110,381
45,460,048
4,032,898

Total wholesale automotive •••••••••••••

178,819

100

J2!!2 1812 1 0UO Y

100

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

154,180
24,639

14

~

86

222,991,308
26,820,732

44

11
Ill
4
89
11

Data are basad on reports from sales finance compRnies providin~ a breakdown of their retail and
wholesale automotive financing. These amounts are leas than those reported in table 3 due to the
exclusion of some date for which breakdowns ware not available,

' >
,r

Table 5.--Voluma of Diversified Ealea Financing During February 1948

Cla88 of paper

..

Dollar

vol\1!1111

ot paper acquired

Retail - other consumers• goodaa
Furniture, radios, pianos, and other musical instruments,,
Refrigerators and other household appliances, •••••••••••••
Residential building repairs and modernization ••••••••••••

3

10
26

18

Miscellaneous retail., ••• , •••• , ••• , •• ,., •••••••.••...•• ,,,

Total retail - other ·oonswr~rs' goods ••• •••• ••••••••• , ••••• •••
TOtal wholesale - other than automoti~··•••••••••••••••••••••

Industrial. commercial, and far.m equipment ••••••••••••••••••••

Total diversified financing •••••••••••••••••• ,

Percentage
of total

$26,510,755 !I
11,846,533
8,393,726
$46,751,014

57

25
18
100

Data are based on reports from sales finance companies providing a breakdown of their retail
financing or other consumers' goods. This amount i1 less than that reported in table 3 due to the
exclusion of some data for which breakdowns were not anilable.