Full text of G.20 Sales Finance Companies : December 9, 1949

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
December 9, 1949

Go20
SALIS

l!'I~

OOIIPARIEB

OCTOBER 1949
Retail financing.--Total automobile paper acquired in October b,y reporting sales finance
companies was in larger 'VOlume than in september and balances outstanding on automobiles continued
to increase. Financing of goods other than automobiles declined from the September 'VOlume and the
outstanding balances showed a .further drop.
Declines in financing of commercial vehicles ware more than offset b7 a S per cent rise
in instalment paper based on sales of new passenger cars. Financing of used passenger automobiles
in October was at about the same level as in September.
Credit traneactions on goods other than automobiles were down about 8 per cent .from the
September total but there was a sharp rise in the category of paper generall7 covering such items
as .furniture, radios, and musical instruments. It is believed that a substantial portion of the
paper in this category represents sales of television sets.
Retail Financing

Class of retail instalment paper
Automotive:

Total retail

Passenger cars a
Commercial cars:

by

Sales Finance Companies

Percentue cllana, Se~tember -~ 1!12 to october l9h9.
Volume of paper
Number
outstanding balances'
of cars
end or month
acauired duriri£ month

.!.l:

ti

New
Used

+4
+l

+~

New
Used

-6
- 5

- 5

Other consumer goods:

Total

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

.!..1l

-6

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

~

.:..l

0

+38
-20

- 3

-5

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

Wholesale financing.--Dealer financing by reporting companies in october of new and
used vehicles was slightly above the September level and the outstanding accounts tor such credit
rose .further. Wholesale financing of goods other than motor vehicles showed a decline in
volume during the month as well as in balances outstanding.
.
Ratio ot paper acquired to balances outstanding.--The turnover rate of receivables as
measured b,y the ratio ot paper purchased during the month to outstanding balances at the end of
the month decreased 1 percentage point to 29 for october.
NOTE.--october data, based on returns from l2S sales finance companies, are compiled
in the same mAnner as those shown in earlier reports. Aggregates represent only the totals for
the reporting compal'rl.es and, since the reporting sample is not identical from month to month,
they are not comparable with totals of preceding months.




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Page 2
SALES FINANCE COJIPAliiES

Table 1.--Automothe and Diversified Financing by Sales Finance Compttn1es
Indexes of Outstanding Balances: December :51, 1939 • 100 !J

End of month
and year

Total
Retail
all
sales
automotive
financing

1939··················

100
132

Wholesale
other
than
automotive

Retail
other
consumers'
goods

Industrial,
c01111l18rcial,
and farm
equipment

100
169
17S
112
40
24
27
90
163
252

100

100
129
148
76
30
26
lOS
226
232

100
131
147
61
27
26
23
S9
89
116

Wholesale
automotive

1947··················
1948 ••••••••••••••••••

100
1.36
1S2
S3
20
18
22
S9
119
174

1948-0ctober ••••••••••
November •••••••••
December •••••••••

163
167
174

148
151

l4S

191
211
252

389
418
4.54

243
238
232

118
11.6
116

1949-January••••••••••
February•••••••••
March ••••••••••••

177
180
184
188
191
198
203
214
22S
232

152
155
164
175
188
197
2o6
219
228
237

273
289
281
260
219
225
227
242
279
294

484
561

221

118
117

207
203
202
203
203
202
199
195

lll
112

1940••••••••••••••••••
1941 •.•..•••.........•

1942 •••••••••••...•..•
1943··················

1944 •••••••••.•••....•
1945 ..•••••.•..•......

1946 ••••••••••••••••••

April ••••••••••••
May' • •••••••••••••

June •••••••••••••
July •••••••••••••
August •••••••••••
September ••••••••
October ••••••••••

149
37
13

lS

18

42

88
151

1.40
2SO
40
8
11
38
224
394
4.54

511

551
515
479
430
417
400
371

39

214

112
lll

111
111
110
lll

Indexes as of .December 31 for the years of 1939, 1940, and 1941 are based on figures reported by
salaa 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 Loaus Jlade by Sales Finance Companies
During October 1949
and Outstanding Balances at End at Month
Peper acquired
during month
Percentage
Amount
of total

Class of paper

Outstanding balances,
end of month
Amount

Percentage
of total

100

lt2 .86':1.7':17 .1M

100

!/••••••••

AB28.196.aL.1

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

10,293,611
29,524,178

1
4

s

] h8,2Jl,l 09
69,989,0$8
78,228,051

2
3

!/• ••.••.•••••.

8788,378,254

95

$2,715,520,057

95

Total, all classes of paper

Total sales financing

32,8JZ,782

c::

!( Included in thi& classification are only those firms which, in addition to their sales financing
operations, reported loan activities.



Pace3
SALIS FIIIAJICB CXIIPABIBS

Table 3.-~utomoti~ and Di~reified Financing by Salee Finance Campaniee
Paper Acquired During October 1949 and Balancee Outetanding at End of Month
VolUIIII of paper acquired
during October 1949
Clue or paper

By

By all
companies
reporting

companies
reporting

Outstanding
balance•
October 31 1

Ratio paper
eoquired to
outstandi;,
balance• b

outatandi~j

1949 !7

$277,917,585
48.3,641,8.3.3
n,558,75.3
Total wholesale - other than automotive •••
22,488,4.38
Total retail - other consumers• goods •••••
6,189,81.3
Industrial, commercial, and tare equipment

$276,087,952
482,086,o62
ll,549,820
22,242,923
6,177,432

$1,897,923,54.3
462,2.39,089
28,137,809
296,420,203
82l996l4.32

l5
104

Total sales financing ••••••••••• $801,796,422

$798,144,189

$2,767,717,076

29

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

!/
~

balanoea a

4l

8
7

Data are based on figures from sales finance companies able to report both their paper ao~uired and
their outstanding balances.
Ratios obtained by dividing paper acquired (column 2) by outstanding balances (column 3).
Table 4.--llumber of ~ra Financed and Volume ot Paper Acquired
by Sales Finance Companies During October 1949
Number ot oars
Clan or paper

Paper acquired

Number

Percentage
or total

Dollar
volume

Percentage
or total

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

2J8,1;l2

100

SZIJ.8,21!i,22Q Y

JOO

New passenger care •••••••••••••••••••
New commercial cars ••••••••••••••••••
Used commercial oars, ••••••••••••••••

94,768
15,171
ll7 ,987
10,8o6

40
6
49

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

226,2:!.!1

l.OO

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

280,490
15,724

95
5

Used pasaenger care ••••••••••••••••••

1.39,200,0ll
20,278,95.3
81,743,351

5

7,05.3,605

56
8
3.3
.3

~Y.23.J.6Q,316 !I

100

439,558,200
13,602,176

97
3

!( Data

are based on reports from sales finance oompRnies providing a breakdown ot their retail and
wholesale automotive financing. These amounts are less than those reported in table 3 due to the
exclusion of some data tor which breakdowns were not available.

Table 5.--Volume ot Diversified Sales Financing During October 1949

Cla88 ot paper
Retail - other oonsumere• goodsa
Furniture, radios, pianos, and other musical instrumente,,
Refrigerators and other household appliances ••••••••••••••
Residential building repairs and modernization, •••••••••• ,
llliaoellaneous retail,, •••••••.••••••• ,,, ••• , ••••••...•••••

Total retail - other consumers' good••••••••••••••••••••••••••
Total wholesale - other than automoti~•••••••••••••••••••••••
Industrial. commercial, and far,m equipment••••••••••••••••••••

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

ot

Dollar volll!lle
paper acquired

$ 2,847,616
9,253,966
2,800,090
6,279,830

$21,881,502 ~/
ll,558,753
6,182,813
$39 ,6.30,o68

Percentage
of total

7

2.3

7

18

55

29
16
l.OO

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 th4!
exclusion of acme data for which breakdowns were not available,


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