Full text of G.20 Sales Finance Companies : December 11, 1947

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM

•

December 11, 1947

G.20

..

SALES FINANCE COKPANI!S

OCTOBER 1947

•

Retail financing.--Sales finance companies reported marked gains in the retail volume of
both autocotive and diversified financing in October. Outstanding balances on the two classes of
paper continued to increase during the month.
The rise of 9 per cent in total retail automotive paper acquired shown in the table below
reflected increases in the financine of all tJ~es of vehicles except used passenger cars. New
vehicle financing in October was up about one-fourth over the level of the preceding month.
Diversified financing increased 13 per cent over·the September volume, as a result of gains
in all classes of paper. Repair and modernization paper rose one-fifth above the level of a month
earlier,
Retail Financing by Sales Finance Companies
Class of retail instalment paper
Automotive:

Total retail

Passenger cars:
ColiBilercial cars:
Other consumers• goods:

Percentage change, September 1947 to October 1947
Number
Volume of paper
Outstanding balances,
of cars
acquired during month
end of month

.!....2

:_2

.!....2

New

+21

+24

Used

- 3

- 1

New
Used

+25
+4

+25
+ 7

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

ill

D

Total

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

+6
+3
+20
+2

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

Wholesale financing.--The October volume of wholesale automotive financing was about
12 per cent above that of September, New car financing increased 15 per cent but used car financing
declined by 8 per cent, Automotive outstanding balances expanded further during the month and
nonautomotive balances continued to decline.
Ratio of paper acquired to balances outstanding.--The ratio of paper acquired during the
month to balances outstanding at the end of the month increased three percentage points to 40 for
October.

•

Note.--october data, based on returns from lSO 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

FINA~CE COMPA~IES

Table I.--Automotive and Diversified Financing by Sales Finance Companies
Indexes of Outstanding Balances1 December 31, 1939 • 100

!/

End of month
and year

Total
all
sales
financing

Retail
automotive

Wholesale
automotive

Wholesale
other
than
automotive

Retail
other
consumers'
goods

Industrial,
commercial,
and farm
equipment

1939 •••..•..••••••••••

100

lOO

100

100

100

100

1940 ••••••••••••••••••

1.36

132

169

140

129

131

1941 ••••••••••••••••••

152

149

175

250

148

147

1942 ..................

53

37

112

40

76

61

1943 •••.••••••••.•••••

20

13

40

8

30

27

1944 ..................

18

15

24

11

26

26

1945 ••••••••••••••••••

22

18

27

38

39

23

1946 ••••••••••••••••••

59

42

90

224

105

59

I

~I

1946- October ••••••••
November •••••••

December •••••••

1947- January ••••••••
February.......
March ..........
April ..........

49
53
59

.36
38
42

62
68

45
48
53
58
62
66
69
72
15
79

73

78
82
87

May ............

June •••••••••••
July ...........
August .........
September ••••• ,
October ........

91

94
100
105
Indexes as of December 31

66
78
90

146
177
224

90
97
105

49
51
59

95

252
110
60
287
116
61
111
325
124
68
110
136
341
67
1ai
351
145
70
111
346
157
71
109
168
336
74
103
180
333
87
122
86
321
192
124
2ai
310
92
for the years of 1939, 1940, and 1941 are based on figures reported by
lOS

salsa 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 October 1947 and Outstanding Balances at End of Month

Peper acquired
during month
Class of paper

Out6tandi ng balances •
end of month

Amount

Percentage
of total

Amount

Percentage
of total

!f........

$535 679 649

100

n 397 o58 095

100

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

55,302,9t4
17,827,8 1
37,475,153

10
3
7

112,877,8:27.
92,h59,420
83,08,417

13
7
6

!f............

480,376,655

90

1,221,180,258

87

Total, all classes of paper

Total sales financing

!/

Included in this classificatlon are only those firms which, 1n add1 tion to their sales financing
operations, reported loan activities,




·I

1

Page 3
SALES FINANCE COMPANIES

Table 3.-~utomoti~ and Di~rsified Financing b7 Sale• Finance Compan1el
Paper Acquired During October 1947 and Balances Outstanding at End of Jlonth
Volume of paper acquired
during October 1947
Class of paper

"

By all
companie1
reporting

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

Total wholesale -other than automotive •••
Total retail -other consumers• goods •••••
Industrial. commercial, and fare equipment

i•

1,;

Total

!/

2J

sa~es

financing •••••••••••

Table

$125,900,514
307,599,240
8,613,528
50,755,949
1,491,777

$123,761,919
305,577,048
8,608,593
50,049,603
1,429,611

$ 653,523,428

200,240,108
23,517,676
371,800,467
14,700,182

20
155
35
14
10

$494,361,008

$489,426,774

$1,263,781,861

40

of ~ar1 Financed and Volume of Paper Acquired
by Sales Finance Companies During October 1947
Number of car•

Clan of paper
!lumber

..

1947 ~

4.--~umber

,

I

reporting
outetand1!J
balances a

Data are baaed on figures from sales finance companies able to report both their paper acquired and
their outstanding balances.
Ratios obtli.ined by dividing paper acquired (column 2) by outstanding balances (column 3).

..

~·

Ratio paper
acquired to
outstandi,;,
balances b

Outstanding
balances
October 31 1

By companies

Paper acquired

Percentage
of total

Dollar
volume

Percentage
of total

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

116,803

100

$lo6~2122530 y

100

New paaaen~r oara •••••••••••••••••••
New commercial cars ••••••••••••••••••
Used commercial oars •••••••••••••••••

35,813
9,085
66,086
5,1119

31
8
56
5

43,516,634
13,o60,294
45,126,997
4,508,605

41
12
43
4

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

214,358

100

$2Bl,o63,382

New oars (paseenger and commercial),,
Used cars (passenger and commercial).

187,642
26,716

88
12

252,462,964
28,600,418

Uaed paaaenger oara ••••••••••••••••••

Y

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 leas than those reported in table 3 due to the
exclusion of same data for which breakdowns were not available,

"

Table 5,--Volume of Diversified Sales Financing During October 1947

Clau of paper
Retail - other consumers• goodsa
Furniture, radios, pianos, and other musical instruments ••
Refrigerator• and other household appliances, •••••••••••••
Residential building repairs and modernization,,,,,,,,,,,,
Miscellaneous retail, •••••••••••••••••••••••••••••••••••••
Total retail- other oo.nsumers• goods •••••••••••••••••••••••••
Total wholesale- other than automoti~•••••••••••••••••••••••

Industrial, commercial, and

fa~

equipment, •••••••••••••••••••

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

of

Dollar volume
paper acquired

Percentage
of total

$ 1,930,523
4,782,h52
31,396,539
12,031,743

52
20

$50,141,257 a/
8·,613,5211 1,491,777

83
14
3

$60,246,562

3
8

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 same data for which breakdowns were not available.