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.