Full text of G.20 Sales Finance Companies : August 10, 1950
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BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM August 10, 1950 G.20 SALES FINANCE COJIPANIES June 1950 Retail financing.--The volume of retail instalment paper purchased by reporting sales finance companies was moderately higher in June than in May. Outstanding balances on automobile transactions continued to expand while balances on other consumer goods remained at about the same level. Automobile paper acquired in June was 12 percent creater than a month earlier, as indicated in the table below. Financing of all types of vehicles increased, with the largest percentage rise reported in the financing of new passenger cars. Paper purchased on other consUI!ler goods showed a small gain in June. All classes of paper in this category increased except that based on sales of ft~niture, radios, and musical instruments. Retail ~inancing Class of retail insta1ment paper Automotive: Total retail Passenger cars: Commercial cars: by Sales Finance Companies Percentage change, May 1950 to June 19SO Number I Volume of p:1per Outstanding balances, of cars acquired during month end of month +10 +12 New Used +13 7 +11 + + 7 New Used +10 + 8 + 9 +10 Other consumer goods: Total Furniture, radios, musical instruments Refrigerators and other household appliances Residential building repair and modernization Miscellaneous retail .:...2. 0 -19 8 + + + 5 8 Wholesale financing.-~Vholesale automotive paper acquired rose substantially in June, and outstanding balances for this type of credit rose in the same prnportion. Other wholesale financing declined during the month in both paper purchased and outstanding balances. Ratio of paper acquired to balances outstanding.--The turnover rate of receivables as measured hy the ratio of paper purchased during the month to outsbmding balances at the end of the month rose 2 percentage points to 32 in June. Note.:::June data, based on returns from J~3 sales f~nance companies, are compiled in the same manner as those shown in earlier reports. Aggregates represent only the totals for the reporting compar.ies 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 I.--Automotive and Diversiried Financing by Sales Finance Companies Indexes or Outstanding Balances: December 31, 1939 • loO !( Wholesale other than automotive Retail other consumers• goods Industrial, commercial, and rarm equipment 100 140 250 40 8 11 38 224 394 100 129 148 76 332 105 226 232 187 100 131 147 61 27 26 23 59 89 116 107 225 227 2)+2 279 294 267 216 479 430 417 400 371 361 332 203 203 202 199 195 190 187 111 111 111 110 111 110 107 250 223 204 186 202 228 329 39R h85 537 537 499 180 176 172 172 174 174 110 109 111 112 117 120 End or month and year Total all sales nnancing 1939 .................. 1940•••••••••••••••••• 1941 •••••••••••••••••• 1942 .................. 1943 •••••••••••••••••• 1944 •••••••••••••••••• 1945 .................. 1946 •••••••••••••••••• 1947 •••••••••••••••••• 1948 .................. 1949 •••••••••••••••••• 100 136 152 53 20 18 22 59 119 174 228 100 132 149 37 13 15 18 42 88 151 249 100 169 175 112 40 24 27 19h9-June ••••••••••••• July ••••••••••••• 198 203 214 225 232 233 228 197 206 219 228 237 2h5 2h9 234 234 237 240 250 263 252 258 265 274 284 299 Au~ust ••••••••• ,. September •••••••• October •••••••••• November ••••••••• DecP.mber ••••••••• 1950-January •••••••••• February ••••••••• March••••o••••••• April •••••••••••• May •••••••••••••• June ••••••••••••• Retail automotive Wholesale automotive 90 163 252 216 454 30 26 39 Indexes as or December 31 ror the years or 1939, 1940, and 1941 are based on rigures reported by sales rinance companies on a supplementary report rorm which accompanied the regular monthly report form for January 1942, Succeeding indexes are derived by calculating the percentage changes or the outstanding belances reported by sales rinance companies for each month from those reported by the same companies ror t!1e preceding month, and by linking these percentages to the indexes for the preceding month, Table 2 .--Relative Importance or Loaus Made by Sales Finance Companies and Outstanding Balances at End of Month During June 1950 Outstanding balances, end of month Paper acquired durin month Class of paper Amount Percentage of total Amount Total loans •••••••••••••••• , ••••••• , Small (personal) loans, ••••••••••• Business loans •••.•••••••••••••••• Total sales financing !/•••••••••••• !( Percentage or total 2 3 985,919,522 95 3,082,263,744 95 Included in this classification are only those firms which, in addition to their sales financing operations, reported loan activities. Page 3 SAIBS FIJIAJCB C<IIPAIIIBS Table 3.-~utomoti~ and D1~rsified Financing by Sale• FiD&Doe Camp&Diee Paper Acquired During June 1950 and Balanoea Outstanding at End ot llonth Volume of paper acquired during J,me 1950 Class of pttper By all companies reporting Total retail automotive ••••••••••••••••••• $365,412,068 Total wholesale automotive, ••••••••••••••• Total wholesale - other than automotive ••• Total retail- other consumers' goods ••••• Industriel, commercial, and faro equipment 578,663,575 17,746,579 :33,476,031 8,505,732 Total sales financing •••••••••• ~ 1,003 '803 '985 Outatandinr; balances June 30, By companies reporting outstandi!? balances a ~362 ,318,535 1950 !Y Ratio paper acquired to outatandi~ balancee b 576,684,570 17,706,091 33,149,432 8,472,039 $2,388,973,784 357,896,825 37,617,087 269,540,251 90,274,856 15 161 47 $998,330,667 $3,144,302,803 32 12 9 !/ Data are baaed on figures from sales finance companies able to report both their paper acquired and their outstanding balances. ~ Ratios ob~ined by dividing paper acquired (column 2) by outctanding balances (column 3). Table 4 .--}lumber of -Cars Financed and Volume of Paper Acquired by Sales Finance Companies During June 1950 Number of oars Class of paper Number Paper Dollar volume Percentage of total acquired Percentage of totel Total retail automotive •••••••••••••••• 294 1 224 100 ~ 316 1 007 1 701 a/ 100 New passenger oara ••••••••••••••••••• }lew collllll8rcial cars .................. Used passenger oars •••••••••••••••••• Used comu~rcial oars ••••••••••••••••• 113,~74 17,475 150,066 1.3,109 39 6 51 4 171,383,631 22,808,250 113,037,111 8,778,709 54 7 36 3 Total wholesale automotive ••••••••••••• 347 1 456 100 New cars (pas£enger and commeroial),, Used cars (passenger and commercial). 329 ,1.~85 17 '971 95 5 $536,804,788 a/ 519,315,825 17,488,963 100 97 3 !/ 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 June 1950 Class of paper Retail - other consumers• goods1 Furniture, radios, pianos, and other musical instruments •• Refrigerators and other household appliances •••••••••••••• Residential building repairs and moderni&ation •••••••••••• Miscellaneous retail., ••.•••••••••••.•• , •..• , ••.••...•.••• of Dollar volU!Il8 paper acquired Percentage of total 4 $ 2,639,797 32 18,959,128 3 ,l.~h3 ,548 71 640,647 6 13 !Y Total retail- other consumers' goods ••••••••••••••••••••••• ,, Total wholesale - other than automotive ••••••••••••••••••••••• Industrial, commercial, and farm equipment •••••••••••••••••••• $ 32,683, 1:>0 8,5'05,732 5'5' 30 15 Total diversified financing., ••••••••••••••••• s 5'8' 935,431 100 17,7~6,5'79 Data are based on reports from aales 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 breakdown• were not available.
@FedFRASER