View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Y Y V S A ^

BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
G.20

:

V

:

v

v

.

.

:

:

:

;

'

F

e

b

r

u

a

r

y

12, 1951

SALES FINANCE COMPANIES
December 1950
Retail financing—The volume of retail automotive financing declined during the month
of December as reported by a sample of Sales Finance Companies. There was a 5 per cent drop in
the total dollar amount of paper acquired, as shown in the table below. The slight gain of 1 per
cent in the volume of new passenger car paper acquired was offset by substantial declines in the
volume of used passenger car and commercial vehicle paper acquired.
Outstanding balances of retail automotive paper held at the end of December declined 1 per
cent from the level of a month earlier.
Total retail financing of goods other than automobiles rose considerably during the month.
The 11 per cent decline in credit for residential building repair and modernization paper was more
than offset by a sharp rise in the paper covering such items as refrigerators, household appliances,
furniture, radios, and musical instruments.
Outstanding balances for goods other than automobiles were 3 per cent below that reported
at the end of November.
Retail Financing by Sales Finance Companies
Class of r e t a i l paper

Automotive:

Total r e t a i l

Passenger cars:

Percentage change, November 1950 t o December 1950
.Number
Volume of paper
Outstanding balances,
of cars
acquired during month
end of m o n t h

-10

New
Used

- 3
-12

C o m m e r c i a l cars: N e w
Used

-20
-19

Other consumer goods:

Total

Furniture, r a d i o s , m u s i c a l instruments
Refrigerators and other household appliances
Residential building repair and modernization
Miscellaneous r e t a i l

- 1
| %
- 7
-19
-16
+ 6

- 3

+12
+ 9
-11
+ 3

Wholesale financing—The total dealer financing of new and used vehicles declined during
December, while outstanding balances based on these transactions continued to rise.
The dollar volume of other wholesale financing rose 1 per cent during December and outstanding balances were 8 per cent higher than at the November month-end.

NOTE.—December data, based on returns from 116 sales finance companies, are compiled
in the same manner as those shown in earlier reports. Aggregates represent only the totals for
the reporting companies and, since the reporting sample is not identical from month to month,
they are not comparable with totals of preceding months.




Page 2
SALES FINANCE COMPANIES

Table 1.—Automotive and Diversified Financing by Sales Finance Companies
Indexes of Outstanding Balances: December 31, 1939 • 100 a^Z

End of month
and year

Total
all
sales
financing

1939
1910
19U1
1912
191*3
19W*
191*5
191*6
191*7
191*8
191*9
1950

April
May

Wholesale
other
than
automotive

Retail
other
consumers 1
goods

Industrial,
commercial,
and farm
equipment

100
129
11*8
76
30
26
39
105
226
232
187
177

100
131
1U7
6l
27
26
23
59
89
116
107
130

100
132
11*9
37
13
15
18
1*2
88
151
21*9
325

100
169
175
112
1*0
21*
27
90
163
216
296

100
11*0
250
1*0
8
11
38
221*
391*
1*51*
332
516

228

21*9

216

332

187

107

231*
231*
237
21*0

252
258
265
271*
281*
298
311*
322
330
331
328
325

250
223
201*
186
202
228
163
179
192
21*0
280
296

329
398
1*85
537
537
1*99
1*36
h2h
1*22
1*35
1*78
516

180
176
172
172
171*
179
185
189
192
188
182
177

110
109
111
112
117
120
123
121*
127
128
132
130

250

266

271*
282

288
291
291

a/

Wholesale
automotive

100
136
152
53
20
18
22
59
119
171*
228
291

263
July

Retail
automotive

252

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
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 . — R e l a t i v e Importance of Loans Made by Sales Finance Companies
During December 1950 and Outstanding Balances at End of Month

Outstanding balances,
end of month

Paper acquired
during month
Class of paper
Amount

Percentage
of total

Amount

Percentage
of total

#811,996,299

100

I3.57L.615.659

100

66.0L1.906
18,722,37k
17,321,532

8
2
6

171.783.2h0
76,7^8,899
95,03h,3U

5
2
3

745,952,393

92

3,102,832,419

95

Included in this classification are only those firms which, in addition to their sales financing
operations, reported loan activities.




Page 3
SALES FINANCE COMPANIES

Table 3.—Automotive and Diversified Financing by Sales Finance Companies
Paper Acquired During December 1950 and Balances Outstanding at End of Month

Volume of paper acquired
during December 1 9 5 0
Class of paper

By all
companies
reporting

Total wholesale - other than automotive...
Total retail - other consumers' goods
Industrial, commercial, and farm equipment

a/
b/

By companies
reporting
outstanding
balances a/

Outstanding
balances

December 31,
1950 a /

Ratio paper
acquired to
outstanding
balances b/

5221,012,771
L9l,513,k93
13,821,897
19,258,263
8,909,765

$219,663,298
1+90,214,992
13,202,831
17,437,250
8,819,957

C2,583,010,524
462,468,471
38,691,281
269,012,477
97,373,144

9
106
3k
6
9

$754,519,192

5749,338,328

33,450,555,897

22

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 4 . — N u m b e r of'Cars Financed and Volume of Paper Acquired
by Sales Finance Companies During December 1950

Paper

Number of cars
Class of paper

Kew cars (passenger and commercial)..
Used cars (passenger and commercial).

acquired

Number

Percentage
of total

Dollar
volume

Percentage
of total

221.501

100

S214.193.816 a /

100

81,908
10,123
119,392
9,781

37
5
54
h

305,282

100

277,571
27,708

91
9

108,865,192
14,212,862
84,321,803
6,793,959
2485.=;21.Ill a /
458,155,652
27,365,459

51
7
39
3
100
91
6

a/ Data are based on reports from sales finance companies 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 some data for which breakdowns were not available.

Table 5.—Volume of Diversified Sales Financing During December 1950

Class of paper

of

Retail - other consumers' goods:
Furniture, radios, pianos, and other musical instruments.
Refrigerators and other household appliances
Residential building repairs and modernisation
Miscellaneous retail
Total retail - other consumers' goods,.,.„.,
Total wholesale - other than automotive..0..
Industrial, commercial, and farm equipment,<
Total diversified financing.

Dollar volume
paper acquired

6,027,910
a,53o,6ai
2,288,719
5.129,211
as,276,481 a/
13,824,897
8,909,765
341,011,143

Data are based on reports from sales finance companies providing a breakdown of their retail
17 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 available.