Full text of G.20 Sales Finance Companies : August 12, 1948

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
G.20

August 12, 1948
SALES J'I!Wa: COMPANIES
JUNE 1948

Retail finaDCing • .....sales fiDance companies reported a marked gain in .the volU1118 of
automotive financing during June. OUtstanding balances on this class of paper rose 4 per cent.
Financing of other ool18WII8rs 1 goods showed a decline for the second successive month, and outstanding balances on these goods remained at about the same level as of the preceeding month.
Total retail automotive paper acquired in June was 11 per cent above that of Ma7·
FinanciDg of all classes of vehicles increased, and in terms of the number of cars financed
the largest increase was in nev passenger car financing •.
Retail financing of consUIII8rs' goods other than automotive declined 10 per cent from
the Ma7 volume. Inorqses in paper based on instalment sales of furniture aDd appliances were
more than offset b,y a sharp drop in credit for residential repairs and modernization.
Retail Financing bT Sales FiDance Companiea

Class of retail instalment paper
Automotive:

Total retail

.Number

ot car

u

:1:1!

Passenger cars:

New
Used

+14
+5

+15
+7

COllllll8roial cars:

Nev _
Used

+7
+9

+6
+15

other conawaers 1 goocla:

Total

Furniture, rad1o11 1 muaioal instrumenta
Retriger&torll aDd other household appliance•
Residential building repair &Dd modernization
Miilcel.l.ueoua. retail

in~'
4ec~se

Jl~eaale

·

in

:!12
+l4
+7
-26
0

tJ.III!Jl2#M·-...The vol1.111!8 o_f wholesale automotive financing wa_s up subatantial:cya comparable gain. On goods other than automotive a
in outet4nd1ng biU&DCea waa reported.

oqta~Jis ~e11 ll!howed
vol~ of .-per acquired and

o1'

paper aggu&fed to h!!Jannes outst&nding.-The turnover rate ot total retail
ot paper purchased during the month to bal,anoea
outstanding at the end of the month increased b,y 1 percentage poitlt to .32 fo:r J~ •
Ratio

and wholesale pape;r as indicated b,y tl1e ratio

. Note.-...;..JUJie data~ ~sed on returns troia 136 sales t'inance companies, ~ c~iled in
the SllllllJ mannfl' as those shown in earlier reports. Aggregates represent on:cy- the tot&le tor
the re:pcn'ting companies and, since the reporting sample is not identical from month to month,
they are not comparable with totals of preceding month"·




Page 2
SALES · FilWICE COIIPANiiS

Table 1.--Aut01110tive and Dhersified Financing by Sales Finance Companies
Indexes of Outstancline; Balancesa December 31, 1939 • 100 ~

End of month
and year

Total
all
sales
financing

Retail
automotive

Wholesale
other
than
autcmotiw

Wholesale
automotive

Retail
other
consumers•
goode

Industrial,
c01111118rcial,
and farm
equipment

1939 •••..•..••••••••••

100

100

100

100

100

100

1940 ••••••••••••••••••

]J6

1.32

169

140

129

131

1941 ••••••••••••••••••

152

149

175

250

148

147

1942 •••••••.•• •.•••••••

53

37

112

40

'76

61

1943 ••..••••••••••••••

20

40

8

30

Z1

1944 ••••••••••••••••••

18

13
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-JUDe •••••••••••••
J~·············
August •••••••••••

IY1
91
94
100
105

66

lll

69

109
103

.346

336

157
168

333

180

71
74
IY1

September ••••••••
October ••••••••••
Hovember •••••••••

lll

Deoeaber•••••••••

119

1948-Januar,r••••••••••

123

Februar.y •••••••••

127

March ••••••••••••
April••••••••••••

134
139
141
147

M&7··············
June •.•••••••••••
~

72

75
79
83
88

122
124

138
163

.321
310
359
394

92

167
171
1'75
159

426
445
458
517
495
462

96
105
113

119
123

143

165

192
2o6
218
226
229
230
2.32
240
250
251

86

92
89
89
92
94

98

lll

118
121

Indexes as of .December 31 for the years of 1939, 1940, and 1941 are baaed 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 deri wd by calculating the percentage
changes of-the outstanding balances reported by aalea 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.--Relathe Importance of Loaua llade by Sales Fi.nance Companie•
and Outstanding Balances at End c:£ Month
During June 1948
Outstanding balancee,
end of month

Paper acquired
during month
Clan of paper
Amount

Percentage
of total

Total, all classes of paper ~··••••••

$577,193,221

100

$1,789,666,156

100

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

472080!799
12,952,614
34,128,185

8
2
6

175,081,105
72,263,1'77
102,817,928

10
4
6

Total sales firt&ncing ~· •••••••••••

530,112,422

92

1,614,585,051

90

~

Amount

Percentage
of total

Included in thi& clauification are only those firms which, in addition to their sales financing
operations, reported loan activities.




Page 3
SALIS FIIWICB COIIPANIBS

Table 3.-~utomoti~ and Di~rsified Financing by Salel Finance Campanie1
Paper Acquired Durint June 1948
and Balances Outstanding at End of llont.h
Volume of paper acquired
during June 1948
Claae of Jl!lper

By all
companies
reporting

By

companies
reporting

outetandi~J

Ratio paper
1oquired to
out standi~
balances b

Outstanding
balance a
June .30,

1948

!I

balances a

Total wholesale • other than automotive •••
Total retail- other consumers• goods •••••
Industrial, commercial, and fa~ equipment

$165,969,178
.324,882,99.3
12,591,065
.31,.347,729
10,064!4.32

$16.3,.39.3,017
.322, 741,987
12,582,607
.31,266,.3.37
10,019,60.3

$904,572,544
255,086,109
.34,894,82.3
.382, 578 •.365
86,892,216

18
127
.36
8
12

·Total eal:es financing •••••••••••

$544,855,.397

$540,Cl0.3,551

$1,664,024,057

.32

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

!( Data are based on figures from sales firtanoe companies able to report both their paper acquired and

5I

their outstanding balances.
Ratios obtained by dividing paper acquired (column 2) by outstanding balances (column 3).
Table 4 .--!lumber of ..C..rs Financed and Volume of Paper Acquired
by Sales Finance Companies buring June 1948
Number of care
Clan of paper

Paper

·Number

Percentage
of total

Total retail automoti!8••••••••••••••••

1.35,90.3

100

~142,5.37 ,9f17

New passenger care •••••••••••••••••••
Used passenger cars ••••••••••••••••••
Used c01111r.ercial cars •••••••••••••••••

.36,18.3
11,927
80,526
7,267

27
9
59
5

50,09.3. 980
18,000,681
68,099,07.3
6,.344,17.3

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

20224.39

100

~97 1 586,501

New oars (passenger and commercial) ••
Used oars (passenger and commercial).

176,954
25,485

87
1.3

267,955,267
29,6.31,2.34

}Jew commercial cars •••.•.• , .... , •.• ,,.

!(

Dollar
volume

acquired
Percentage
of total

M

100
.35
1.3
48
4

!I

100
90

10

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 1948

Clan of paper
Retail - other consumers• goode:
Furniture, radios, pianos, and other musical instruments ••
Refrigerators and other household appliances ••••••••••••••
Residential building repairs and modernization ••••••••••••
Miscellaneous retail, ••..••••• ,. •••.,, •• •.•• , ••.••••..•• ••

Total retail - other consumers' goods •••••••••••••••••••••••• •

Total wholesale- other then automotive•••••••••••••••••••••••
Industrial. commercial. and farm equipment ••••••••••••••••••••
Total diversified financing .................. ,

of

Dollar volume
paper acquired

Percentage
of total

$ 1,.302,8.30
7,976,9.34
10,707 '709
102764,596

15
20
20

$.30,752,069 !I
12,591,065
10,064,4.32

57
24
19

$5.3,407,566

100

2

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 breakdowns were not available.