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,