Full text of G.20 Sales Finance Companies : December 7, 1959

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BOARD OF GOVEENOES OF THE FEDERAL RESERVE SYSTEM
0.20

December 7, 1959
SALES FINANCE COMPANIES *
/

October 1959

"•
" E e t a i l ' p a s s e n g e r car i n s t a l m e n t paper held "by s a l e s
f i n a n c e "companies i n c r e a s e d $78 m i l l i o n during October to an e s timated $7,406 m i l l i o n a t the end of the month. The expansion
compares with decreases of $124 m i l l i o n and $20 m i l l i o n during
t h e same month of 1958 and 1957 r e s p e c t i v e l y . Other consumer
goods paper r o s e $27 m i l l i o n and p e r s o n a l loans expanded by $ l 4
m i l l i o n . T o t a l o u t s t a n d i n g consumer i n s t a l m e n t paper a t s a l e s
f i n a n c e companies reached $10 b i l l i o n a t the end of October.
S a l e s f i n a n c e companies during October acquired 162
thousand r e t a i l c o n t r a c t s on new passenger c a r s and 215 thousand
on used passenger cars f o r a t o t a l d o l l a r volume of $668 m i l l i o n .
Over 70 thousand more r e t a i l automotive c o n t r a c t s were purchased
during t h e month as compared with a year ago.
Wholesale automotive paper o u t s t a n d i n g inc re ase d $14-9
m i l l i o n during October. This compares with a d e c l i n e of $91 m i l l i o n f o r t h e same month l a s t y e a r . A l l o t h e r types of busine ss
c r e d i t i n c r e a s e d during the month.
Outstanding C r e d i t Held by S a l e s Finance Companies
( i n m i l l i o n s of d o l l a r s )
1

-

Type of c r e d i t
Consumer i n s t a l m e n t c r e d i t
R e t a i l automotive (passenger cars)
Other consumer goods paper
Repair and"modernization loans
Personal loans
Business c r e d i t l /
R e t a i l automotive (commercial v e h i c l e s )
Wholesale automotive
Wholesale o t h e r than automotive
Other b u s i n e s s c r e d i t

Oct. 31,
1959

I n c r e a s e o r decrease during:
Year ended
Oct.
Oct.
Oct. 31. 1959
1958
1959

10.071

+122

-ll4

+1,294

7-406
l'788
33
844

+ 78
+ 27
+ 3
+ 14

-124
+ 9
- 1
+ 2

+
+
+
+

929
228
14
1&3

2,954

+187

+ 66

+

945

586
1,283
139
946

+ 14
+149
+ 4
+ 20

- 2
- 91
+ 3
+ 24

+ 109
+ 627
+ %4o
+ 169

"* E s t i m a t e s f o r August and September have been r e v i s e d to r e f l e c t the i n corporation of data f o r Hawaii. Revised data appear on page 4 of t h i s r e l e a s e .
"1/ Excludes some c r e d i t extended to business ? such as t h a t extended by
factoring subsidiaries.



- ,2 • -

Gr.20

C r e d i t Extended "by S a l e s Finance Companies
( i n m i l l i o n s of d o l l a r s )

Type of c r e d i t

Oct.
1 9 5 9

IS

Consumer i n s t a l m e n t c r e d i t
R e t a i l . a u t o m o t i v e (passenger cars)
New
Used

2 3

+ 2 3 5

+

1 8

+ 1 8 4

+

2 2

+ 1 6 0

2 4 1

-

4

1 8 5

-

4
1 1 6

Business c r e d i t l /
R e t a i l automotive (commercial v e h i c l e s ) New
Used

Wholesale o t h e r than automotive
Other b u s i n e s s c r e d i t 1 /

+

1 2 7

Other consumer goods paper
Repair and modernization loans
P e r s o n a l loans

Wholesale automotive paper
New (passenger and commercial)
Used (passenger and commercial)

Change from:
Month
Year
ago
ago

3
0

+

8

+

2 4

+ 26
- 1
+ 26

+ 7 9 4
5

T i g

+
.

+ 7 2 7

+

5

+

0

+

1 3

1 2 0

87
5 1

158

l

+ 6 9 3

1 . 2 0 7
1

1 7

TW

+

+S75

6

+'

-

3

+

8

+

2

+

8

1 8

l / Excludes some c r e d i t extended to b u s i n e s s f such as t h a t
extended "by f a c t o r i n g s u b s i d i a r i e s .




0,20

-3 Number of Motor Vehicles Financed "by S a l e s Finance Companies
( i n thousands)

Type of v e h i c l e

Oct.
1959

Total f i n a n c e d by r e t a i l
New passenger
Used passenger
New commercial
Used commercial

U08
lS2
215
19
12

Total f i n a n c e d a t wholesale
New (passenger and commercial)
Used (passenger and commercial)

W6

526
80

Change from:
Month
Year
ago
ago
0
T S

+
-

8
3
1

+301
+299
+ 2

+ 78
+35

+ Ik

+
-

7
1

+281
+2^5
+ 16

Credit S a l e s of New Passenger Cars as a Per Cent
of Total Number Sold a t E e t a i l l /
Credit S a l e s
'
1959 - October
September
1958 - October

Per Cent
62
8^r
yl+r

l / Based oh new car i n s t a l m e n t c o n t r a c t s acquired by banks
Bales f i n a n c e companies 'f o t h e r f i n a n c i a l i n s t i t u t i o n s and automobile d e a l e r s . Data f o r p r i o r months may- be o b t a i n e d by w r i t i n g
to t h e D i v i s i o n of Research and S t a t i s t i c s Board of Governors of
t h e F e d e r a l Reserve System ; Washington 2 5 ? ' d . C.
r / Eatiiratea from January 1958 through September 1959 have
been r e v i s e d s l i g h t l y as a r e s u l t of r e v i s i o n of some of t h e components used i n p r e p a r i n g the e s t i m a t e s . Revised data appear on
page k of t h i s r e l e a s e .




- 4 -

G.20

Revised Estimates f o r S a l e s Finance Companies
August 1959
Vehicles
financed
( i n thousands)

Credit
Outstanding,
extended
end of month
( i n m i l l i o n s of d o l l a r s )

Type of c r e d i t
Consumer i n s t a l m e n t c r e d i t
R e t a i l automotive (passenger cars)
New
Used

$•806
7'240

Business c r e d i t '
Wholesale automotive paper
New (passenger and commercial)
Used (passenger and commercial)

3,250
.1,658,

"

988
700

XX

m

263

XX.

1114
-

XX
XX

Total v e h i c l e s f i n a n c e d a t r e t a i l

XX

405
167*
238

'

XX

XX

M ,

*

772
83

•

% %

.

m .

319
79

432

' :

September 1959
Outstanding, 1 C r e d i t
extended
end of month
( i n m i l l i o n s .of d o l l a r s ) •

Type of c r e d i t
Consumer i n s t a l m e n t c r e d i t
R e t a i l automotive (passenger cars)
New
Used

950
650
405
245

9.949

Business c r e d i t
Wholesale automotive paper
New (passenger and commercial)
Used (passenger arid commercial)

2,767
1/134

7,328
XX
XX

682

XX

379
156
223
:

XX

336
81

225
147
78

XX

408

JtiJ

XX

.

XX

Total v e h i c l e s f i n a n c e d a t r e t a i l

Vehicles
: ..financed
( i n thousands)

XX

Revised E s t i m a t e s of Credit S a l e s of New Passenger Cars
as a. Per Cent of Total Nufiiber Sold
—
Feb.

Mar.

Apr.

63

60

56

61

56

1
1959 ! 55
I
1

58

57

60

56

1958




July

Aug.

Sept.

63

71

73

81

60

75

68

85

May June

Jan.

Oct i .Nov.
74

55

Dec,

Year

56

63