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 totel 108.1U2 100 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 4,032,898 100 New passenger care ••••••••••••••••••• New commercial cars •••••••••••••••••• Used passenger cars •••••••••••••••••• Used c~~roial cars ••••••••••••••••• Total wholesale automotive ••••••••••••• --· Dollar "Volume Total retail automotive •••••••••••••••• ... Percentage of total 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.
