Full text of G.20 Sales Finance Companies : February 12, 1951
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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 Retail automotive Wholesale other than automotive Wholesale 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 89 116 107 130 100 136 152 53 20 18 22 59 119 171* 228 291 100 169 175 112 1*0 2* 1 27 90 163 216 296 100 11*0 250 10 * 8 11 38 221* 391* 15* *1 332 516 228 21*9 216 332 187 107 231* 231* 237 21*0 April May 100 132 11*9 37 13 15 18 12 * 88 151 21*9 325 252 258 265 271* 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* 127 128 132 130 250 263 266 July 271* 282 288 291 291 a/ 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 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 a/ b/ C2,583,010,524 462,468,471 38,691,281 269,012,477 97,373,144 9 106 3k 6 9 $754,519,192 Total wholesale - other than automotive... Total retail - other consumers' goods Industrial, commercial, and farm equipment $219,663,298 1+90,214,992 13,202,831 17,437,250 8,819,957 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 acquired Number 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 Kew cars (passenger and commercial).. Used cars (passenger and commercial). Percentage of total 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 sales 17 financingbased on reports from goods. finance companies providing a breakdown of their retail to the of other consumers' This amount is less than that reported in table 3 due exclusion of some data for which breakdowns were not available.
