Full text of G.20 Sales Finance Companies : August 31, 1945

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM

August 31, 1945
R&S ate - 6

SALES J'INANOJ: COMPANIES
JULY 1945

.

Retail financing. 'fhe volume of retail financing by sales finance companies declined
slightly in July, but end-of-month outstanding balances contin~d to show a gradual rise. The 2 per
cent gain in retail automotive paper acquired was acc0111panied by a corresponding increase over the
aonth-period in the amount outstanding. Outstanding balances on other consumers' goods financed wre
3 per cent larger than at the end of June although the dollar volUJ118 of paper purchased during July
was below that of' the preceding month.
'fhe increase in total retail automotive f'~ancing, shown in the table below, was
attributable to a considerable expansion in both number and dollar value f'or new passenger oars.
Financing of' used passenger oars in July was slightly above the preceding acmth in number of' oars and
paper acquired. The gains in passenger oar financing wre partially offset by declines in the volume
of' paper acquired tor new and used oCIIIDeroial vehicles.

Retail financing of' consumers' goods other than automotive showed a considerable decline in
July. The volume of' furniture paper acquired was down only 1 per cent but paper arising from the sale
~f Tefrigerators and other household appliances wa.s 5 per cent 8lllllller than in the preceding month.
The volume of repair and mcdernization paper acquired also declined in July as is customary at this
time of' the year. 'fhe largest decrease occurred in financing of' miscellaneous retail sales.·
Retail Financing by Sales Finance C0111panies
Class of' retail
instalment papeT
AutaDOti ve a

Total retail

Passenger oars:

-·>

New
Used

ec..ercial cars: Hew
Used
Other consumers• goods:

Percentage change, June l94o to July I§i!i
Volume or paper
outstanding balances,
Number of oars
acquired during month
end of' month
1

!...!

+ 2

+49
+ 2
+ 5
- 5

+26
+ 3
- 1
- 4

Total retail

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

-

- 9
- 1
- 5
- 7

-16

-+ 2
...
...
...
...
+ 3
-...
...
...

...

Wholesale financing. Wholesale automotive financing during July amounted to approxiiiiAtely
f'our-f'if'ths of' the June volume. This decline was attributable to a 29 per cent drop in paper
arising from sales of new passenger and.cammercial vehicles and to a less marked decrease in wholesale
transactions f'or used vehicles. Balances outstanding on all wholesale automotive paper declined
further in July and at the end of' the month wre 16 per cent below those on June 30.
Ratio of' paper acquired to balances outstanding. Retail automotive paper purchased was
19 per cent and other retail consumer paper !2 per cent of the respective balances outstanding at the
end of the 1110nth. The volume of wholesale automotive paper acquired amounted to about 39 per cent or
the balances outstanding at the end of July while industrial, cammercial and farm equipment paper acquired was equivalent to only 4 per cent of: the end-of-month balances.
Note 1 July data, based. on returns fl'CIIIl 179 sales finance cCIIIlpanies, are compiled in the
same manner as those shown in earlier reports. Aggregates represent only the totals f'or the reporting c0111panies 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 1.--Autaaotive and Diversified Financing by Sales.Finance com;anies
Indexes of Outstanding Balances: December :n, 19S9 • 100 ~

Total
all
sales
finanoinr;

End of month
and year

Retail
automotive

Wholesale
a.utanoti ve

Whoiesa.le
other
than
a.utomoti ve

Retail
other
consumers'
goods

Industrial,
commercial,
and farm
equipment

1939 •......••••...•.••

100

100

100

100

100

100

1940 ••••••.••••••.••••

1S6

132

169

140

129

131

1941 ••••••••••••••••••

162

149

115

250

148

147

1942 ••••••••••••••••••

53

31

112

40

76

61

1943 ••..•...••....••.•

20

13

40

8

30

27

1944 •••••••••• ••••••••

18

15

24

11

26

26

1944- July ••••••••••
Augu•t ••••••••
September •••••
October
ITo"Vember
December

19
19
19
19
18
18

16
16
16
16
16
15

29
26
25
24
23
24

10
10
12
10
10
11

24
24
25
25
26
26

33
21
27
27
25
23

1945 - January •••••••
February ••••••
llaroh •••••••••
April

18
18
18
18
18
18
18

15
14
14
14
14
14
15

25
26
26
25
25
24
20

14
15
18
17
16
16
16

26
26
26
27
28
29
30

27
26
30
32
28
27
27

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

.........
Jwe ..........
July ••••••••••

May •••••••.••••

.
Indexes as of December 31 for the years of 1939, 1940, and 1941 are based 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 derived by calculating the percentage
changes of the outstanding balances 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 Loans Made by Sales Finance Companies
During July 1945
and Outstanding Balances at End of Month
Paper acquired
during month
Class of paper
Amount

Outstanding balances,
end of month

Percentage
of total

Amount

Percentage
of total

Total, all classes of paper ~·······•

.70 444.507

100

$285,718.629

100

Total loans ••.•••••••.•••••••••••.••

29.227.619
7,937,359
21,290,260

41
11
30

!U,iBQ,666
46,137,252
35.343,404

28

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

16
12

Total sales finlll!cing ~· •••••••••••

41,216,888

59

204,237,973

72

Included in thh

cla~.Ssification

are only those firms which, in addition to their sales financing


operations, reported loan activities.


Page 3
SALES FINANCE COMPANIES

Table 3.--AutQmotive and Piversitied Financing bY. Sales Finance Companies
.
January 1942 "' 100

iJ

•

ITEM

.,k::1

.

1944

•
+'

.

+'
o·

194:5

•

p

•

. . ....
,c

•

0

!

~

39 37 30 32 '29
51 48 40 42 -37

25
33

24
31

4
6

4
5

3
5

3
4

2
3

3
4

2
4

30 27 22
24 22 19

30
25

22
21

18
17

25
24

28
24

26
36

27 35 33 34
37 48 45 46

!

Ill

e

fl2

0

0

l1li

~

:l

!- I

41

k

~ .;

RETAIL AUTOMOTIVE
Total number of cars financed •.••••••••••••••••••••
Total volume of paper acquired ••••••••••.••••••••••

4
6

24 32
31 41

30 31 34 M
38 39 45 4:6
2
4

2
3

3
4:

New passenger oars •. ••..•••••• •·.Number •.... ......•

6

6

Paper acquired ••••

8

8

New commercial cars •••••••••••• Number ••••••••••••
Paper acquired ••••

15
16

18
20

Used passenger

•••• ••••••• • NUJnber • •••••••••• •

45

Paper acquired ••••

64

42 34
59 48

36 32
61 46

27
37

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

11
24

12
23

16
31

16
34

14
28

22 17
46 36

15 19
30 40

18
35

18 20 19
37 41 39

Tottal volume of paper a_oquired •••••...•......•••.••

10

12

12

12

12

14

16

15

18

16

15

15

12

New cars (passenger and ·commercial) •••••••••••.••

4

5

4:

4

4

5

6

4

6

5

5

7

5

Used cars (passenger and commercial) •••••••••••••

40

51

52

57

55

65

71

73

80

70 68

56

47

35 43

42

45

44

45

44

38

49

51

51

68

53

Total retail, other consumers' goods •••.•..••••••

45

56

66

59

58

69

53

48

55

63

66

75

69

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

21

22 23

29 23

24

27

19

26

26

28

27

26

Refrigerators and other household appliances •••

17

18

17

14

17

16

22

24

33 r33

31

Residential building repairs and modernization. 118 142 131 136 133 114

99

94: 114 129 151 172 159

ca~s

30 38 40
26 30 30·
37 38
63 54

WHOLESALE AUTOMOTIVE
(Paper acquired)

.

DIVERSIFIED FINANCING
(Paper acquired)

Total diversified financing ••••••••••••••••••••••••

Miscellaneous rete.il •••••••••••••••••.•••••••••

61

Total wholesale, except automotive ...............

3

Industrial, conunercial, and farm equipment ••• , •••

63

13

14

99 115 113 139 .207 172 154 143 179 137 171 143
4:

3

4

5

5

13

52 48

68

35

39

54

10

8

9

9

11

55 206 122

53

60

39

7

Indexes are derived by calculating the percentage changes in the number of cars financed or the
volume of paper acquired by sales finance compan~es during each month f'rQm the number of cars
financed or the volume of paper acquired by the same companies during the preceding month, and by
linking these percentages to the indexes for the preceding month. The indexes for "Total retail
automotive," "Total wholesale automotive," and "Tote.l retail, other consumers' goods" are based on
all.figures reported for these items regardless of whether or not breakdowns could be supplied.
~.

*

r - Revised.




\

Page 4
SALES FINAB<Z COMPABIES

Table 4.--Automoti~ and Di~rsified Financing by Sales Finance Companiee
Paper Acquired During
Jul;r . 1945 and Balances Outstanding at End of Month
Volume of paper acquired
during July 1946
Clan of paper

By companiee

By all
companiee
reporting

Outstanding
balances
July 31,
1946

Ratio paper
acquired to
outstandiij
balances b

!I

reporting
outst&.ndi~J

balances a

Total retail automotive •••••••••••••••••••
Total wholesa~e automotive,, ••••••••••••••
Total wholesale- other than automotive •••
Total retail - other consumers' goods •••••
Industrial, commercial, and fare equi~nt

$23,420,676
12,686,290
472,069
7,362,199
178,790

$22,903,716
12,667,446
439,032
6,739,326
1682328

tl20,948, 724
32,761,238
1,060,467
56,089,679
4,371.540

19
39
42
12
4

Total sales financing •••••••••••

$44,118,924

$42,907,847

t216,221,638

20

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

E(

ac~uired

and

their outstanding balances.
Ratios obtained by dividing paper acquired {column.2) by outetanding balances (column 3),
Table

of Cars Financed and Volume of Paper Acquired
by Sales Finance Companies During July 1946

6.--~umber

Number of oars
Clasa of paper

Paper
Dollar
volume

acquired

Number

Percentage
of total

Percentage
of total

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

36,208

100

$19,967 !876

New passenger care •••••••••••••••••••
!Jew commercial cars ••..••.•.•••.••• ·,.
Used passenger cars •••••••• ~ •••••••••
Used commercial cars, •••••••••.••••••

182
811
32,990
1,226

1
2
94
3

184,433
919,621
18,041,688
812,134

1
6
90
4

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

14.671

100

uo. 722,290

lQQ

l~ew cars (passenger and commercial) ••
Used cars {passenger and commercial),

6,264
8,307

43
57

4,329,121
6,393,169

40
60

-·

!I

100

!J 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 4 due to the
exclusion of some data for which breakdowns were not available,

Table 6,--Volume of Diversified Sales Financing During July 1945

.....
Class of paper
Retail - other consumers' goode:
Furniture, radios, pianos, and other musical instruments ••
Refrigerators and other household appliances ••••••••••••••
Residential building repairs and moderni&ation ••••••••••••
Miscellaneous retail••••••••••••••••••••••••••••••••••••••

Dollar volume
of paper acquired

•

832,200
324,026
4, 781,928
1,382,601

Tot&.l wholesale- other than automotive ••••••••••• ~ •••••••••••
Industrial. commercial, and farm equipment ••••••••••••••••••••

t'7,320,655
472,069
178,790

Total diversified financing •••••••••••••••••••

$7,971,514

Total reta.il - other consumers' goods ••••••• ••••••••.••••••••·•

Percentage
of total

11
4
60
17

!I

92
6
2
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 4 due to the
 exclusion of some data for which breakdowns ware not available.


~