Full text of G.20 Sales Finance Companies : February 11, 1947
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BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM f'ebruary 11, 194-7 G.20 SALES FINANCE COiotP.ANIFS DECEJ.iBER 1946 Retail finanoing.--The volume of retail financing by sales finance companies advanced sharply in December after declining scaewhat during the preceding month. Automoti w paper acquired increased 22 per cent and diversified financing rose 7 per cent above respective November levels. Outstanding balances on both olaues of paper continued to increase. The gain in total retail automobile financing, shown in the table below, resulted from increases in all types of cars financed except new commercial vehicles. N- car financing, after a small decline in !lovember, rose 37 per cent, and accounted for about 44 per cent of the dollar volume of retail automotive paper acquired during the current month. The 7 per cent rise in diversitied.finanoing reflected sizable gains in the volume of paper based upon sales of furniture and radios, refrigerators and other household appli~ces, and miscellaneous retail sales. The volume of paper a~uired for residentie.l repair and.,modernization reaained at the November level. Retail Fimncing by Sales Finance Companiea Claaa of retail inatalment paper Automotive: +17 Total retail New Used Passenger oar a: C011111111rcial cars: New Used Other consumers' goods: Percentage change, llfovember 1946 to December 1946 :Number Volume of paper OUtatan~~g balances, of cars acquired duri~ month end of month +29 +22 +37 +16 +21 -24 -14 +12 + 9 Total retail Furniture, radios, musical instruments Refrigerators and other household appliances Residential building repair and modernization Miscellaneous retail Wholesale - + 7 +42 +34 0 +12 +-9 ... ... ... ... +8 -... ... ... ... finanoi~.--The December volume of wholesale autODLOti ve financing was about of a month earlier, reflecting marked gains in the financing of both new and used vehicles. Other wholesale financing increased about one-fourth over the November volume. Balances outstanding on autQnoti ve and other 1¥holesale financing showed further substantial gains. 19 per cent larger than tha Ratio of !i{per acquired to balances outstanding.--The ratio of paper acquired during the month to balances o standing at the end of the month advanced 3 percentage points to 41 !or December. · Note .--neceilibir data, baaed on returns from 167 aaies finance companies, are compiled in the same manner as those shown in earlier reporte. Aggregates repreeent only the totals for the :reporting compallies and, since the reporting sample is not identical fran month to month, they are not comparable with totals of preceding months. Page 2 SALIS FIIIAJiCB COIIPAIIIIS Table 1.--AutOIIIOthe and· Dherdtied Financing by Salea Finance com;aniea Inde:xea of Outstanding Balanoeu December 31, 1939 • 100 !f Wholeaale other than autcmotiw Retail other cona\llllerl 1 goode Industrial, c-rcial, and fllJ'III equipment 100 100 100 100 132 169 140 129 Ull 162 lU 175 260 168 1" 1942 •••••••••••••••••• ~ IT 112 •o 76 61 1943 •••.•••••••••••••• 20 13 40 8 ao 27 194-t • •••••••••••••••••, 18 16 H 11 26 26 1916 • •••••• •·•·• ••••.•••• 22 18 27 38 a9 2a 19t& •••••••••••••••••• 59 u SIO 2M 59 19l6- JllBUilr,r ••••• ~ •• february ••••••• llarob •••••••••• April •••••••••• 23 26 26 29 al 18 19 20 22 H 26 28 ao aa . 105 n 21i 27 a2 aa H 38 S8 End· ot aonth and year Total all aalea financing 1939 ••••.••••••••••••• 100 100 1940 •••••••••••••••••• lll6 1941•················· ...7············ Jtme ••••••••••• Retail autCliiiOtiw aa ....... .A1J1118t ••••••••• ~~,..~····· a1 u lepte.ber •••••• " o&9 o&9 li6 IIi 37 40 o&8 66 67 66 78 10 u ~ I'O"Naber •• ••••• m.--.r ....... 28 as as as 69 Ootober ••••••• ~ Wholeaale automotiw S8 68 71 81 91 106 126 lo&e 1'17 224 " '6 51 6'1 62 69 76 82 90 97 105 " '6 o&9 67 n Inde-• aa of Decelllber 31 for the ,eara of 19a9, lMO, and l&tl are baaed on figurea reported by aalea fillance oa.panle1 OD a aupplementar,r report fora which accompanied the regullr aonthly report form tor Jan\lllr,r 1942. Suo-cling inde:xea are deriwd by oaloulating the percentage cbangea of the outatancling balancea reported by aale1 fillllDoe caapaniea for each r.onth from thoae reported by the allll8 cc:apan1ea for the preoecling IIOilth, and by liDking theae percentage• w the inde:xea tor the p:reoe4ing aonth. Table 2.-Relatiw Iaportance of Loaua Jlacl8 by Salea Finance CCI&paniea Duriuc De0811ber 1K6 and Outstanding llalancea at. End ot llonth Paper acquired duriJ~C - t h Claaa of pe.per Outstanding balanoea, end of month Amount P'eroentage of total Amount Percentage of total !/•••••••• taa1 166 7oa 100 t826.762kOU 100 Total loans .......................... Saall (peraonal) loans •••••••••••• Buaineaa loana •••••••••••••••••••• 66,2a9,,69 19,a04,687 31i,9M,872 17 6 1§ 11 lJ!il,lti."t T•,lil7,S60 TT,627,1U !(. ••........• 276.916. 2"" sa 6Tt,617 ,670 82 Total, all claaaes of paper Total aalea financing !( 9 9 Included in this olaaaification are only those firma which, in addltion to their salea financing opera tiona, reported loan aoti vi ties. Table 1.·-t~lw azul D1wra1t1e4 F1-o1q by Sal.. F1111M08 ec.puiea Paper Aoqu1re4 Dur1q Daoeaber 11146 u4 Balanoea Outatu41ns at ID4 ot llollth Vol- ot paper aoqu1re4 durlns Daoelllber 11146 t~ I Cla.. ot paper I By all Olllllp&Dlel report1q Outatu41q llaluoea :Dhnber Sl, 1M6~ By oa.pulea report lac == Batlo paper aoqu1re4 to out•~ balllDNI Total wholeaala automot1~ •••••••••••••••• Total wboleaalo • otblr than autlllll0t1w ••• Total retail - other oonaumore• soo4a ••••• Induatr1el, oama~rcial, azul tara equ1pmaDt • '76,'799,'712 1'72,281,8'1'7 8,9M,'766 28,M8,768 llM& 1ne • '76,812,85J 1'71,8U,l66 8,1168,883 t6,669,8'71 11 SM 1 688 1118,818,030 U2,817 ,886 18,Ul,ll8 189,683,10. 9 1 681 1 &90 22 120 62 14 16 Total aalea r1nanoinc••••••••••• I2M,O.O,MO t282!511!82l l6t1,US,928 n total retail !/ ]!/ au~a.oti~•·••••••••••••••••• Data are baoed on f1prea frca .alea f1JjUOI cCDpanlea able. to report both their paper aoqu1nd azul thftr outat81141t~C balUOII • Ratios obtained by divldinc paper acquired (oolUIIIIl 2) by outatud1ng .balllDNI (oolUIIIIl 3), Table 6 ....Jn.bar ot C..r1 Pinan014 an4 VolUM ot Paper .Aoquirecl bJ Saloe F1Dan01 Ccapulea Durlt~C Da..._r 1948 Jlilalber ot oara Cla. . ot paper ltullbor Paper nouu PerMDta~ ot total 16 6 66 28,'788,811 8 ,1-6(). 030 28,1'74,111 2,811i,l99 fl&& 1 &12 1 948 ~ . 100 • 8&,1180!1118 Jew pa•••ncer oart ••••••••••••••••••• 29,0'71 4,118 tJ•d c-ro1al oa;ra •••• • ••.• ,. ......... Ja••~~ oar••••••••••••••••••• "·'"' 1,&12 • Total wboleaale automotive ••••••••••••• 1401301 100 leW oara (paseemger and ccmaeroial) •• 118.9Sl 21,1'72 86 u... • Uaed oars (paa1en~r &nd oam.eroial). .,.' 100 100 oar•·· ......... •••••••• • ot tot.l ~ 81,910 e~reial Per•~ttap "ol- total retail autoaot1.- •••••••••••••••• _. aoqt¥1ra4 18 134,1&6,429 20,..6,819 • ., . a !/ Data are based on report• trfiiiJ aalae i'J.IWIOI COIIIpMiea providing a breakdcnm or their retail and wboleaale autanothe flnucins. Theae aaounta ara lou than those reponed in table 3 dul to th4f exolud.cm ot 101118 data tor which braakdowlla wro not aveilable. ' Claaa ot papel' Retail - otllar OODII~r•' sood•a Furniture, radloa, piano1, and other aualoal lut~nta •• Refriserators and other houeebold appll&noea •••••••••••••• Reeidential building repair• and modarnlaation •••••••••••• Jiaoellaneoua retail •••••••••••••••••••••••••••••••••••••• Total retail- other oonaumera• goOd•••••••••••••••••••••••••• Total •holesale- other than automot1~•••••••••••·~··•••••••• Industrial, commercial, and farm equipaant ••••••••••••••••• ,,, Total diversified tinanclns•••, .............. , !/ Dollar vol- ot paper al!liulred Peroantase ot total • • 1,422,419 2,0.1,60. 15,2M,ll9 81 918 1 21'7 6 46 12&,8'76,1'79 ~ 8,9M,'766 l.M5,6'18 '18 20 4 21 100 Data are ba10d on report• tr01a sales tinanoe COIIIp8Diea prov1d1n& a breakdown of their retail financing or other cons\llllere' goode. Thil 1111ount h le11 than that reported in table 3 due to the ezclulion of 10110 data for which breakdowns wre not aftilable, '