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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,
'