Full text of G.20 Sales Finance Companies : December 12, 1946

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
December 12, 1946

G.20
SALES FINANCE COKPANIES

OCTOBER

I

I

1946

Retail financin~.--The volume of retail financing by sales finance companies during October
was considerably 18rger t an in the preceding month and end-of-m~nth outstanding balances continued to
increase. The 14 per cent gain in dollar volume of retail automotive ·paper acquired was accompanied
by a further rise in the amount outstanding. Oth4tr retail instalment paper acquired durir..g October
was approximately 19 per cent larger than the volume of a month earlier and the amount outstanding
rose 10 per cent.

I

I•

The increase in total retail automotive financing, shown in the table below, reflected gains
in all automotive transactions, particularly in commercial vehicles. New passenger car financing increased only 6 per ~nt in October, or at a much slower rate than in other recent months.
The sharp rise in retail financing of consumers• goods other than automotive resulted from
substantial increases in all classes of paper. The largest per~Je&tae;e gains o courred in paper based
on sales of refrigerators and other household appliances, and on sales of miscellaneous merchandise.
Retail Financing by Sales Finance Companies

Class of retail instalment paper
Automotive 1

Percenta,;e chan~~ September 1946 to October 1946
Outstanding balances,
Number
Volume of paper
of oars
acquired during month
end of month

Total retail

Passenger oars•·
Cc.mercial oars•

New
Used
New
Used

Other consumers• goods a Total retail
lo'urniture, radios, musical instruments
Refrigerators and other household appliances
Residential building repair and modernization
Miscellaneous retail

+13
-+6

+14
--

-+ 9

+13

+6
+13

+56
+16

+61
+14

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

+19
--

+10
--

+10
+36
+13
+28

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

i'ilholesale financing.--The October volume of wholesale automotive financitlf was about or.efifth larger than that of September reflecting marked gains in the financing of hot!: new and used
vehicles. other wholesale finanoinr was also well above the volume of the preceding month.
Ratio of paper acquired to balances cutstanding.--The ratio of pa~r purchased during the
month to balances oUtstanding at the end of the month increased 3 percentage points to 42 for
October.
Ratios were somewhat higher for all classes of paper.
Note.--October data, based on returns from 159 sales finance companies, are compiled in
the same manner as t.hose shown in earlier reports. Aggregates represent only the totals for the reporting companies and, since the reporting sample is not identical fran month to month, tt:ey are not
comparable with totals of preceding months.




Page 2
SALES FINANCE COJ4PA}jiES

Table 1.--Aut01110tive and Diversified Financing by Sales Firuonce Companies
Indexes of Cutstandinr, Balancesa December 31, 1939 • 100 ~

End of month
and year

Total
all
sales
financing

Retail
automotive

Wholesale
automotive

Wholesale
other
than
automotive

Retail
other
conswners'
goods

.Industrial,
commercial,
and farm
equipment

1939 •....•..•.••.••..•

100

100

100

100

100

100

1940 ••••••••••••••••••

136

132

169

140

129

131

1941 ••••••••••••••••••

162

149

176

260

148

147

1942 ••••••..••••••••••

53

37

112

40

76

61

1943 • ••.•••.••...•••.•

20

13

40

8

30

27

1944 ••••••••••••••••••

18

15

24

11

26

26

1946 •..•••••••••••.•••

22

18

27

38

39

23

1945 - October ••••••••
November •••••••

19
21

December •••••••

22

16
17
18

18
24
27

28
32
38

35
37
39

24
24
23

1946 - January ...•••••
February •••••••
March ••••••••••
April ••••••••••

23
25
26
29
31
33
37.
41
44
49

18
19
20
22
24
26
28
30
33
36

28
36
36
35
37
40
48
65
57
66

41

25
27
32
36
"36
38
38

M•Y••••••••••••
Juna •••••••••••

July •••..••••••
August •••••••••
September ••••••
October ••••••••

44

49
66
68

71

81
91
106
125
146

44

46
51
57
62
69
75
82
90

44

46
49

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
chan~& of the outstandi~g balances reported by sales finance companies for each month from
those reported by the same companies for the preceding month, and by linkint; these percentages
to tte indexes for the preceding month.

Table 2 .--Relative Importance of Loaus 14ade by Sales Finance Companies
During October 1946 and Outstanding Balances at End of' Month
Outstanding balances,
end oi' month

Paper acquired
during month
Class of paper
Amount

Percentage
of total

Amount

Percentage
of total

Total, all classes of paper ~··••••••

~283.683.639

100

$690.549.114

100

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

46.697.707
13,1S0,864
33,1506,843

17
5
12

133.287.1:!6~

19

66.173,140
67,114,723

10

Total sales financing ~··········••

236,885,932

83

657.261.251

81

9

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



e.

Page 3
SAlES FINANCE COMPANIES

Table 3.-~utamoti.- and DiYersified Financing by Sales Finance Campaniea
Paper Acquired During October 1946 and Balances Outstanding at End of Month
VoliiDIB of paper acquired
during October 1946
Clan of paper

By

By companies

all

reporting

compani~s

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

!I

outstandi~J

reporting

Outstandinr;
balances
October 31,
1946

Ratio paper
acquired to
out standi;,
balances b

balances a
t>

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

'64,790,888
145,083,086
4,697,283
28,567,160
1,515,909

64,070,974
144.731,762
4,644,469
27,299,709
11317.638

tl290,003,614
104,277,967
10,723,313
163,625,452
71981.675

22
139
43
17
17

Total sales financing •••••••••••

$244,654,326

t242,064,552

i576,612 ,021

42

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

Data are based on figures from sales finance companies able to report both their paper acquired and
their outstanding balances,
Ratios obtained by dividing paper acquired (column 2) by outstanding balances (column 3),
Table

of ..care Financed and Volume of Paper Acquired
by Sales Finance Companies During October 1946

4.--~umber

Number of oars
Clan of paper
!lumber

Paper

Percentage
of total

Dollar
voliiDIB

Percentage
of total

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

76,554

100

• 56.351,268

New passenger cars •••••••••••••••••••

Used camu•roial oars •••••••••••••••••

23,545
5,925
43,720
3,364

31
8
57
4

21,864,250
7,192. 778
24,889,8J.8
2,404,422

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

128.548

100

$131,163,534

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

ll2,488
16,060

88
12

117,511,916
13,651,618

llew cOIIIIDBrcial oars, •• , , • , ••• , ..... , •
Used passenger oars ••••••••••••••••••

acquired

!I

100
39
13
44
4

!I

100
90
10

!f Data

are based on reports from sales finance oompRnies 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 same data for which breakdowns were not available.

Table 5.--Volume of Diversified Sales Financing During October 1946

Clau of paper
Retail - other consumers' goodes
Furniture, radios, pianos, and other mueical inetr\IDIBnta••
Refrigerator• and other household appliances ••••••••••••••
Residential building repairs and moderni&ation, •••••••••••

of

Dollar volume
paper acquired

Miscellaneous retail •••..•••. , •.•• ,.,.,, •.•• ,,,, •........•

• 1,357. 746
1,-557,293
16,049,648
8 756 055

Total retail - other oonenlJr.ers• goods •••••••••••••••••••••••••
Total wholesale- other than automoti~•••••••••••••••••••••••
Industrial, commercial, and far.m equipment••••••••••••••••••••

$27.720,742
4,697,283
1,615,909

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

!(

~33,933,934

Percentage
of total

4
5

47
26

!I

82
14
4

100

Data are based on reports from Gales 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 a,.ilable.