Full text of G.20 Sales Finance Companies : December 11, 1951
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BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM q#20 December 11, 1951 SALES FINANCE COMPANIES OCTOBER 1951 R e t a i l f i n a n c i n g — P u r c h a s e s of r e t a i l a u t o m o t i v e p a p e r b y s a l e s f i n a n c e companies i n October remained a l m o s t unchanged f r o m t h e p r e v i o u s month. The one p e r c e n t g a i n i n t o t a l d o l l a r volume r e f l e c t e d i n c r e a s e s i n commercial and u s e d - c a r p a p e r t h a t were a l m o s t e n t i r e l y o f f s e t b y a d e c l i n e i n p u r c h a s e s of new p a s s e n g e r c a r p a p e r » O u t s t a n d i n g b a l a n c e s of r e t a i l a u t o m o t i v e p a p e r a t t h e end of October were one p e r c e n t below t h e end of September, f i r s t month-to-month d e c l i n e s i n c e March. R e t a i l f i n a n c i n g of o t h e r consumer goods i n c r e a s e d by 8 p e r c e n t i n October a f t e r h a v i n g d e c l i n e d somewhat i n t h e p r e v i o u s month. A lU p e r c e n t d e c l i n e i n r e f r i g e r a t o r and o t h e r h o u s e h o l d a p p l i a n c e p a p e r was more t h a n o f f s e t b y t h e s h a r p g a i n s i n o t h e r t y p e s of f i n a n c i n g . O u t s t a n d i n g b a l a n c e s of p a p e r on consumer goods o t h e r t h a n a u t o m o b i l e s were p r a c t i c a l l y unchanged from t h e p r e c e d i n g month. R e t a i l F i n a n c i n g by S a l e s F i n a n c e Companies C l a s s of r e t a i l p a p e r P e r c e n t a g e change, September 1951 t o October 1951 Outstanding balances Volume of p a p e r Number end of month a c q u i r e d d u r i n g month of c a r s + 2 + 1 New Used - 5 + 5 1 + Commercial c a r s : New Used + 6 +lh +10 +1? Automotive: Total r e t a i l Passenger cars: Other consumer goods: Total Furniture, r a d i o s , t e l e v i s i o n s e t s , musical instruments R e f r i g e r a t o r s and o t h e r h o u s e h o l d a p p l i a n c e s R e s i d e n t i a l b u i l d i n g r e p a i r and m o d e r n i z a t i o n Miscellaneous r e t a i l + 8 - 1 0 +32 -lit +31 +10 Wholesale f i n a n c i n g — W h o l e s a l e a u t o m o t i v e p a p e r a c q u i r e d by s a l e s f i n a n c e companies i n c r e a s e d s h a r p l y f r o m September and o u t s t a n d i n g b a l a n c e s of t h i s p a p e r a t t h e month-end were 5 p e r c e n t above t h e l e v e l of t h e p r e v i o u s month. Wholesale f i n a n c i n g of goods o t h e r t h a n a u t o m o b i l e s a l s o r o s e b u t b a l a n c e s o u t s t a n d i n g on t h i s c l a s s of p a p e r d e c l i n e d . NOTE.—October d a t a , b a s e d on r e t u r n s from 109 s a l e s f i n a n c e companies, a r e compiled i n t h e same manner a s t h o s e shown i n e a r l i e r r e p o r t s . Aggregates r e p r e s e n t o n l y t h e t o t a l s f o r t h e r e p o r t i n g companies and, s i n c e t h e r e p o r t i n g sample i s n o t i d e n t i c a l from month t o month, t h e y a r e n o t comparable w i t h t o t a l s of p r e c e d i n g months. Page 2 SALES FINANCE COMPANIES Table 1.—Automotive and D i v e r s i f i e d F i n a n c i n g by S a l e s Finance Companies Indexes of Outstanding B a l a n c e s : December 31, 1939 • 100 a / Total all sales financing End of month and y e a r Retail automotive Wholesale automotive 1939 191*0 192*1 1912 19U3 19hh 191*5 191*6 191*7 191*8 191*9 1950 22 59 119 171 228 291 325 27 90 163 252 216 296 1950-October.. November• December# 288 291 291 331 328 325 280 296 1951-January.• Februarye March.... April.... May June..... July August... September October.. 287 286 290 29k 298 302 298 299 299 299 320 315 312 311 100 $ 53 20 18 100 132 11*9 37 13 15 18 Wholesale other than automotive Retail other consumers' goods 100 li»0 100 129 11*8 76 30 26 39 105 226 100 169 175 112 liO 250 Uo 8 11 38 22U 39U U5U 332 516 i% 2 .177 21*0 1*35 1*78 516 188 182 177 291 306 356 382 1*01 Uo5 372 339 325 31*1 61*8 171 166 161 156 153 150 11*6 11*8 11*9 i5o 21* 1*2 316 321 321* 331 335 332 759 906 91*3 899 821* 737 638 599 568 __ a/ Indexes a s of December 31 f o r t h e y e a r s of 1939, 1940, and 1941 a r e based on f i g u r e s r e p o r t e d by s a l e s f i n a n c e companies on a supplementary r e p o r t form which accompanied t h e r e g u l a r monthly Hep o r t form f o r J a n u a r y 1942, Succeeding i n d e x e s a r e d e r i v e d by c a l c u l a t i n g t h e p e r c e n t a g e changes of t h e o u t s t a n d i n g b a l a n c e s r e p o r t e d by s a l e s f i n a n c e companies f o r each month from t h o s e r e p o r t e d by t h e same companies f o r t h e p r e c e d i n g month, and by l i n k i n g t h e s e p e r c e n t a g e s t o t h e i n d e x e s f o r t h e p r e c e d i n g month, Table 2 . — R e l a t i v e Importance of Loans Made by S a l e s Finance Companies During October 1951 and Outstanding Balances a t End of Month Class of paper Paper acquired during month Percentage of t o t a l Amount Percentage of t o t a l $952,587,851 100 $3,699,925,669 100 87,1*33,352 23,317,1*65 61*, 115,887 9 2 7 21*6,782,632 129,823,280 116,959,352 7 h 3 865,151*,1*99 91 3,1*53,11*3,037 93 Amount T o t a l , a l l c l a s s e s of paper a/% Business loans */ Outstanding b a l a n c e s , end of month I n c l u d e d i n t h i s c l a s s i f i c a t i o n a r e only t h o s e f i r m s w h i c h , i n a d d i t i o n t o t h e i r s a l e s f i n a n c i n g o p e r a t i o n s , r e p o r t e d loan a c t i v i t i e s . Page 3 SALES FINANCE COMPANIES Table 3.--Automotive and D i v e r s i f i e d Financing by Sales Finance Companies Paper Acquired During October 1951 and Balances Outstanding at End of Month Volume of paper acquired during October 1951 Class of paper Total wholesale - other than automotive... Total r e t a i l - other consumers1 goods Industrial, commercial, and farm equipment a/ b/ By a l l companies reporting By companies reporting outstanding balances a / Outstanding balances October 31, 1951 a / Ratio paper acquired t o outstanding balances ty $31*8,792,057 li77,67l*,190 13,702,121 28,898,022 8,802,133 $318,118,625 1*77,523,257 13,679,37k 28,672,951 8,79li,ti52 $2,600,153,273 531,575,639 1*2,1*00,771 222,501,199 111,102,997 13 90 32 13 8 $877,868,523 $876,788,659 $3,507,733,879 25 Data are based on f i g u r e s from sales finance companies able t o report both t h e i r paper acquired and t h e i r outstanding balances. Ratios, obtained by dividing paper acquired (column 2) by outstanding balances (column 3 ) . Table 4.—Number of Cars Financed and Volume of Paper Acquired by Sales Finance Companies During October 1951 Paper Number of cars Number New cars (passenger and commercial).. Used cars (passenger and commercial). Percentage of t o t a l acquired 11 Class of paper 287,21k 100 $299,965,373 v 8k,062 15,795 170,U6l 16,896 29 6 59 6 125,020,887 23,623,109 138,886,01*0 12,1.35,337 282,017 100 239,768 k2,2k9 85 15 $1*71,856,1*51* a / 1*29,730,908 1*2,125,51*6 Percentage of t o t a l 100 h2 8 kS h 100 91 9 a / Data are based on reports from sales finance companies providing a breakdown of their r e t a i l and wholesale automotive financing. These amounts are l e s s than those reported in table 3 due to the exclusion of some data for which breakdowns were not a v a i l a b l e . Table 5.—Volume of Diversified Sales Financing During October 1951 Class of paper Retail - other consumers' goods: Furniture, radios, pianos, and other musical instruments.. of Dollar volume paper acquired Percentage of t o t a l $ 7,1*60,755 8,236,556 U, 261*, 519 7,1*32,608 15 16 9 15 $27,391*,1*38 a / 13,702,121 8,802,133 55 27 18 $1*9,898,692 100 ~a7 Data are based on reports from s a l e s finance companies providing a breakdown of t h e i r r e t a i l financing of other consumers* goods. This amount i s l e s s than that reported i n table 3 due to the exclusion of some data f o r which breakdowns were not a v a i l a b l e .