Full text of G.20 Sales Finance Companies : August 12, 1949

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, . _......... ...,..,

BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYST~M

_ <''I
August 12, 1949

G.20

JUNE 1949

'
Retail financing.--Reporting sales finance companies acq~ed
a slightly smaller volume of automobile paper in June than in May. These purchases, howe~) exceeded repayments on
existing automobile receivables, and as a result outstanding balances rose .during the month.
Purchases of other retail paper in June were above the May level and for the first time in 12
months outstanding balances showed an increase.
The 2 per cent decline in dollar volume of automobile financing, as shown in the
table below, reflected decreased purchases of paper based on sales of all types of vehicles
except new trucks.
Financing of goods other than automobiles rose 9 per cent above the )fay volume, as
a result of marked increases in nearly all classes of paper. Only a moderate increase was reported in the volume of furniture paper.
Retail Financing by Sales Finance Companies
chan_g_e.J Mal'_ 19~_9 to June 19~9
Volume of paper
Outstanding balances,
acQ.uired during month
end of month

Percenta~~:e

Class of retail instalment paper
Automotive:

Total retail

Passenger cars:
Commercial cars:

New
Used
New
Used

Other consumer goods:

Number
of cars
-1

- 2

-1
-1

- 1
- 3

+2

+ 1

+5

0

Total

Furniture, radios, musical instruments
Refrigerators and other household appliances
Residential building repair and modernization
Miscellaneous retail

!...2
+ 2
+ 9
+11
+ 9

:!2....

...
...
...
...

-+l

...
...
...
...

Wholesale financing.--Reporting companies financed a slightly higher volume of motor
vehicles at wholesale in June than in May and outstanding balances in this category also rose.
Wholesale financing of other goods was somewhat less than that of a month earlier, and outstanding balances continued to decline.
Ratio of paper acguired to balances outstanding.--The ratio of paper purchased during
the month to outstanding balances at the end of the month declined one percentage point to 31
in June.

NOTE.--June data, based on returns from 129 sales finance companies, are compiled in
the same manner as those shown in earlier reports. Aggregates represent only the totals for 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 I.--Automotive and Diversified Financing by Sales Finance Companies
Indexes of Outstanding Balances: December 31, 1939 • 100 !/

End of month
and year

Total
all
sales
financing

1939··················
1940 ••••••••••••••••••
1941 ••••••••••••••••••

100
136
152

1942 •••••••••••••.••••

Retail
automotive

53

20
18
22

100
132
149
37
13
15
18

59

42

Wholesale
automotive

Wholesale
other
than
automotiw

Retail
other
consumers•
goods

Industrial,
commercial,
and farm
equipment

100
140
250
40
8
11
38
224
394
454

100
129
148
76
30
26

39

100
131
147
61
27
26
23

105
226
232

116

121
120
119
119
118
116
116
118
117

100
169
175
112
40
24
27

194J ••••••••••••••••••
1944 ••••••••••••••••••
1945 ••••••••••••••••••
1946 ••••••••••••••••••
1947 ••••••••••••••••••
1948 ••••••••••••••••••

l.l.9
174

88
151

163
252

1948-June .............
July •••••••••••••
August ...........
September ••••••••
October ••••••••••
November •••••••••
December •••••••••

147
151
155
157
163
167
174

123
130
136

462
448

145
148
151

165
164
165
154
191
211
252

418
454

251
250
249
247
243
238
232

1949-January ••••••••••
February •••••••••
March ............
April ••••••••••••

177
18o
184
188
191
198

152
155
164
175
188
197

273
289
281
260
219
225

484
561
571
551
515
479

221
214
207
203
202
203

May ••••••••••••••
June •••••••••••••

!/

90

142

396
362

389

59
89

lll

112
112
111

Indexes as of .December 31 for the years of 1939, 1940, and 1941 are based on figures reported by
aalea 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 belances 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
June 1949 and Outstanding Balances at End of Month
Outstanding balances,
end of month

Paper acquired
during month
Class of. papar
Amount

Percentage
of total

Total, all classes of paper !/••••••••

$755.369.942

100

Total loans .......••.. .....••......•

Small (personal) loans ••••••••••••
Business loans ••••••••••••••••••••

)8.228.201
10,686,826
28,311,375

Total sales financing !/••••••••••••

716,371,741

!(

Amount

Percentage
of total

$2.474.262 144

100

3

4

121.112 • Sl2
76,841,706
Bo,270,813

95

2,317,149,625

94

s1

6
3

Included in this classification are only those firms which, in addition to their sales financing
operations, reported loan activities.




Page 3
SALES FINANCE COliPANIES

Table 3.-~utomoti~ and Di~rsified Financing by Sales Finance Companies
Paper Acquired During June 1949
and Balances Outstanding at End of Month
Volume of paper acquired
during June 1949
Class of paper

By all
companies
reporting

By companies
reporting

Outstanding
balances
June .3g,

Ratio paper
acquired to
out standi;,
balances b

1949 a

outatand1~7

balances a

$262,446,786
414,569,819
14,573,468
Total wholesale -other than automotive •••
31,936,493
Total retail- other consumers' goods •••••
6,408,82.3
Industrial, commercial, and fare equipment

$26o,890,678
413,351,857
14,545,408
.31,634,175
6,379,107

$1,585,385,595
.353,76o,174
36,347,817
315,784,408
83,405,075

16
117
40
10
8

$729,9.35,389

$726,801,225

$2,374,683,069

31

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

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

Total sales financing ••••••••• ,,
~

Date are based on figures from sales finance companies able to report both their paper ao~uired and
their outstanding balances.
~ Ratios ob~ined by dividing paper acquired (column 2) by outstanding balances (column 3),
Table 4,--Number of ~ara Financed and Volume of Paper Acquired
by Sales Finance Companies During June 1949

Number of cera
Class of paper

Paper

acquired

Number

Percentage
of total

Dollar
volume

Percentage
of total

Total retail eutomotive ••••••••••••••••

221,982

100

~J2,82J,U6!f'

100

New passenger care •••••••..••••••••••

New commercial cars ..................
Used passenger cars ••• ,,,,,,,,,,,,,,,
Used c~srcial oars ••••••• ,,.,,,,,,,

74,384
14,732
132,300
10,567

32
6
57
5

109,231,44.3
19,702,0.30
96,624,129
7,335,514

47
8

Total whole sa·le automotive • • , ..••••••••

251z182

100

$388,.342 ,389!1

100

liew cars (passenger and commercial),.
Used cars (passenger and commercial).

233,10.3
18,079

93
7

371,967,615
16,374,774

96
4

~

42

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 1949

Class of paper
Retail - oiher consumers' goods:
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 than automotive •••••••••••••••••••••••
Industrial, commercial, and fa~ equipment ••••••••••••••••••••
Total diversified financing •••••• ,,,,,,,,,,,,,

of

Dollar volume
paper acquired

$ 1, 751,473

Percentage
of total

.3
34

17,510,1.35
.3,4.38,264
8,561,369

16

$31,261,24]..!1
14,573,468
6,408,82.3

28
12

$52,24.3,5.32

7

60

100

Data are based on reports from sales 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,