Full text of G.20 Sales Finance Companies : April 30, 1946

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BOARD Of GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
G.20

April

30, 15t46

SALIS nNAM:B COJIP.ARIIS
KARCH 1946

Retail tinanoing.--Th• volume ot automotive and other retail financing increased sharply
in lfaroh, and outstand1iigoalanoes on both ola.sses or paper showad a further gradual rile.
The inoreaee ot 31 per cent in total retail automotive fizl.anciJ;g, shown in the t•ble be-.
low, reflected gains in the volume ot all classes or retail automotive paper acquired. lew
passenger oar financing, llbioh has been on the upswing since last lfoV8!1lber, rose sharply in MarOb.
Bew passenger oar paper acquired accounted tor about 13 per o•nt of the lfaroh dollar vol~ ot
retail automotive financing. 1
The rile ot 23 per cent in retail financing ot consumers' goods other than ,.utoJROti ve
resulted froa marked increases in all classes ot paper except. that arising fro. miscellaneous
retail sales.

Cla.. ot retail inatalaent paper
AutaaotiTe:

Total retail

Passenger can a
Commercial oarsa

Jrew
Used.
Bew
Used

other consumers' goodsa

+
+

9

5

lI
I

Total retaill-------1

Furniture• radios, liUsioal instl'UIIIeDts
Refrigerators and other household applianoea
Residential building repair and modernisatiOn
Miscellaneous· retail

I
I

·~·

+11

+23
+23
+17
+37
+37

-4

.•••, .
...

Wholesale tinano!ng.-·The volume ot wholesale automotive financing during lfaroh was substantially above that of a month earlier, as a result of increases in both new and used o•r pap-r.
Wholesale financing other than automotive was also considerably larger than the volume ot the
preceding month •

•

Bote• Lroh d&ta, baaed cm returns rr* 160 sales tlnanoe c&apiDiea, are oomplJed in
same manner u those aho'IID in earlier reports. Aggregates repJ'fll~t only the totals tor the ·
reporting companies and, since the reporting sample 1e not identical troa month to
they
are not comparable with totals ot preceding months.
~e




••th,

Page 2
SAI.BS FIIWICS COMPA~IIS

Table 1.--Automotbe and Diwrdtied Fir~anoing by Salea Fir~ance Com,.niea
Indexes ot Outstanding Balance a a December 31, 1939 • 100 !f
Wholesale
other
than
- autcmotiw

Retail
other

Industrial,
commercial,
-and farm
equipment

End ot month
and year

Total
all
aalea
financing

1939 ••••.•.•••••••••••

100

100

100

100

100

100

1940 ••••••••••••••••••

136

132

169
\

140

129

131

1941 ••••••••••••••••••

152

llS

175

250

148

147

1942 .••••••••••••••••••

53

31

112

40

76

61

194-3 •••••••••••• ••••••.

20

13

8

30

27

1944 ••••••••••••••••••

18

15

40
24

11

26

26

19JI,5• •••••••••••••••••

22

18

27

38

39

23

1945- laroh ••••••••••

18
18
18
18
18
18
18
19
21

14
14
14
14
15
15
15
16
17
18

26

18
17
16
16
16
19
21
28
32

26

30

27
28

32
2827
27
25

April ••••••••••
lilLy'••••••••••••

June •••••••••••
JulJ•••••••••••
August •••••••••
September ••••••
October ••••••••
Honmber•• •••••
December•••••••

Retail
automotiw

22

Wholesale
automotive

25
25

24
20

18
17
18

24

38

- 27

ccnaUJ~~ara 1

goods

'

29

30

31

"
35

31
39

24
24
24

23

28
18
25
41
~
27
19
~·
~2
20
llarah.
Indexes as of December 31 tor the years ot -1939, 1940, and 1941 are baaed on figures reported by
aalea tirllance companies on a supplementary report tonn which accompanied the regular montllly report form for January 1942. Succeeding indexes are deri wd by calculating the percentage
changes ot the cutatand111g balances reported by aalea finance companiea for each month f'rom
thoae reported by the aame companies tor the preceding month, and by linking theae percentages
to t~e indexes tor the precedi!lg month.
-

19b6- January••••••••
February •••••••

23

~

~~

'~

Table 2.--Relathe Importance ot Leana 14ade by 'Sales Finance Companies
During
and Outatanding Balances at End d 1.\onth
Outstanding balanoea,
end oi' month

Paper acquired
during month
Claaa of paper

Percentage
of total

Amount

Amount

Percentage
of total

!/••••••••

tl45. 720.611

100

1404,286,023

100

.Total loans ••. ....•••..••.•• • •. ·· •. ·••
Small (personal) loans ••••••••••••
Buaineaa loan•••••••••••••••••••••

~8.98~·i3~
11,127, 5'
27,857•682

27

25

19

99!906!236
50,640,610
49,265.626

!/• ••.••••••• ;

106,735,276

13

304,379,787

75

Total, all c1aaaea of paper

Total aal~s ·financing

6

1'

12

I

!(

Included in this claaaifioation a ... only those firma which, in addJtion to their sales financing

operations, reported loan aoti vi tie a.


I

~
I

I

Page 3
SALES FIMANCE COMPANIIS

Table 3.--Automotive and Diversified Financing ~~Sales Finance Companies
January 1942 • 100 !f

19l46

1945
ITEM

...• ...•
:1 1(

i !

•

to.

......

110

~

~

•

~

•

•

l 8 I

•

0

!

•

~

•

i

•

~·

RETAIL AUTOWTIVE

32

Total number of oars financed ••••••••••••••••••••••
Total volume of paper aoquire4•••••••••••••••••••••

41

New passenger oars ••••••••••••• Number •••••• ~ •••••

e

~

Paper acquired ••••

3q 3q 33 36
q6 ~ 50

s~ s~ . 45

~ ~

Used passenger cars •••••••••••• Number ••••••••••••
Paper acquired, •••

35
48

~ew

oars (passenger and commercial) ••••••••••••••

Used oars (passenger and coii1Dl8rcie.l) •••••••••••••

'

31 38 36
53 54 50
19 lE 18 20 19 19
40 3~ 31 41 39 39

l~ ~

~ 42 40 54
59 57 60 58 76

41

I

~ 9 18
~ 11 19

~

56

~

38 90
39 93

148 83 61 57 62
104 65 49 q6 51

37 43 41 39
54 62 61 58
31

~f

~q

65

~

39 50
60 73

45 41 40 42
88 81 82 100

'

WHOLESALE AUTOMOTIVE
(paper acquired)
Total volume of paper acquired •••••••••••••••••••••

3 ·~
~ 3
5
'40 56 7q
·~~ 38
30 30 43 56

f

New oommercial oars •••••••••••• Number •••••••• ~ ••• Paper acquired ••.••

Used commercial cars •• • •••••••• }lumber •••••,•••••••
Paper acquired ••••

-2

~

15 15 12 14 15 lS 32 30 32 q6 52
6 ~ 5 7 5 5 6 10 22 21 22 35 40
80 7C 68 56 47 62 56 61 71 64 71 74 90
18

1~

DIVERSIFIED FINANCING
(Paper acquired)
Total diversified financing ••••••••••••••••••••••••

49 51 51 58 53 62 63

~

75 69 81 82

10~

93 92 117
103 101 109 109 134

2~

28 29 29 26 30

55 6

6l:

F'urni ture • radios • musical instruments., •••••• •

26

2E 27 26 26

Refrigerators and other household appliances •••

22

Total retail. other

con~umers'

goods •••••••••••••

Residential building repairs and modernization. 1~
Miscellaneous retail •••••••••••••••••••••••••••

143

Total wholesale. except automotive •••••••••••••••

10

Industrial. oonmercial, and farm equipment •••••••

1206

!/

2~

~

82

82

33 33 31 28 3q 4~ 62 69 76 71 98
12'; 15 172 159 173 158 21C 216 197 20q 197 271
~

17~

E
12~

13~

~

5~

171 143

~

312 37E

9 11 11 10

~

~11

286 352 383 368

26 26 34 31 50

50 39 47 43 9C 57 84 164 129 216

Indexes are derived by calculating the percentage changes in the n~ber of care financed or the
volume of paper acquired by sales finance companies during each month from the number of care
financed or the volume of paper acquired by the same companies during the preceding montt, and by
linking these percentages to the indexes for the preceding month. The indexes for "Total retail
automotive •" "Total wholesale automotive," and "Total retail, other coneumera• goods" are baaed on
all figures reported for these items regardless of whether or not breakdowns could be aupplied,




Pap.
SALIS FIIWICB CXIQ'AIIIBS

Table t,--Aut01110the aacl. Diftraifiecl. Financins by Salee Finaace Cca.paniee
Paper Acquired Durins llarch 1946 aad Balaacee OUtetanding at End of Jlonth
Vol.ume of paper acquired
during llarch 1946
Clau of paper

By all
companies
reporting

Total retail autamoti,. •• , ••••••••••••••••
Total Wholeeale automotive., ••••••••••••• ~
Total wboleeale- other thaa automotive •• ,
Total retail- ether coneumere• goode •••••
Indu1trial, oammercial, and farD equipment
'
Total 1alee financing •••••••••••

.

!/
~

B;y companiee

reporting
outetandi~

OUtstanding
balaacee
lfaroh ~
1946-

Ratio paper
acquired to
out standi;,
belanoes b

balances a

1,114,349

tl61,771,246
6o,l66,177
3,906,423
84,877,628
5,433el81

41
15
21

tl09,208,229

t316,154,655

35

t38,523,745
56,898,230
1,661,917
13,000,873
1,141, 764

t37,580,456
56,587,737
1,599,369

tll1,226,529

12,326,298

23

94

llata are 'baeed en figure• ·frcm salee finaace companies able to report both their paper acquired and
their out1tanding balance••
Ratio• obtained by dividing paper acquired (column 2) by outstaading balances (column 3),
Table 5.--~ber of care Finaaged and Volume 'or Paper Acquired
by Salu Fi11aace Ccmpallies During llarch 1946
l!lumber of care
Clau of paper

Paper acquired

!lumber

Percentage
of total

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

52,010

100

·~1.81;1.~72

Jww paeaen,er oar••••••••••••••••••••
»ew oommeroial oar•••••••••••••••••••
Uae4 paeeencer oar•••••••••••••••••••
Uae4 Oamm8roial oars, ••••••••••••••••

4,969
1,432
43,06o
2,529

9
3
83
5

3,984,198
1,729,069
24,147.321
1,990. 784

Total whole eale automotive •••••• ·••••• , •

59,284

100

New oar• (paeaenger and commercial) ••
Ueed care (paeeenger and commercial),

~.523

75
25

14,761

Percentage
of total

Dollar
volume
al

t49, 723,209 a/
37,514.421
12,208,788

100
13
5
76
6
100
75
25

!/ Data

are baeed on reporte from ealee finance oompl\lliss providing a breakdown of their retail and
whole1ale automotive financing. These amounts are leu than those reported in table 4 due to the
. exolueion of some data for which breakdowns were not available.

Table 6,--Volume of ,Diversified Sales Financing During Karch 1946

Clau of paper
Retail - other ooneumer1 1 goodea
Furniture, racl.loa, planoe, and other musical instruDents ••
Refrigerators and other household appliances, •••••••••••••
Re•idential building repaire and modernization ••••••••••••
•iaoell~oua retail ••••••••••••••••••••••••••••••••••••••

Dollar volWIIIII'
of paper eo9,u1red
•

tl2,921,510
1,661,917
1,141, 764

Total divereified finanoing •••••••••••••••••••

tl5,725,191

!f

6

861,520
788,406
8,208,861
3,062,723

Total retail - other oonaumere' good••••••••••••••••••••••••••
fotal wholeaale - other than automot1 w •• • ••• , •••••.•••.••••.••
Industrial, commercial, and fana equipgent •• ;,, •••••••••••••••

Peroentage
of total

5

52
19

!I

82
11

7
100

Data are bas•d on r•port• fr0111 ealea finance companies providing a breakdown of their retail
financing of other oonsU~Dere' goods. Th11 amount is leu than that reported in table 4 du• to the
 exoluaiGD of 1ome data for which breakdawoe -.re not available,