Full text of G.20 Sales Finance Companies : January 1, 1948
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BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM NOVEHBER 1947 SALES FINANCE COMPANIES Retail financing.--sal.es finance companies reported mixed trends in November in the retail volume of financing of various types of vehicles and other goods. Outstanding balances, however, continued to expand during the month. The number of vehicles financed in November was S per cent less than in the preceding month, but the dollar volume of financing rose slightly. This increase in dollar volume and the decline in unit volume shown in the table below, implies a substantial rise in the average amount of financing per unit. Decreased volume was reported in the financing of all types of vehicles except new passenger cars. Used passenger car financing was down for the second consecutive month. . The drop of 11 per cent in the financing by these companies of other consumers' goods re·sulted largely from a reduction in volume of paper based upon residential building repair and modernization. ·All other types of paper increased with the largest percentage rise shown in paper based upon miscellaneous retail sales • Retail Financing by Sales Finance Companies Class of retail instalment paper Automotive: ~ Total retail Passenger cars: Commercial cars: Percentage change October 1947 to November 1947 Volume of paper Outstanding balances, Number of cars acquired during month e!Xl of month ±....1 :!::..2 ... ... New Used +1 +7 -14 -1 New Used -19 -22 -17 -13 ... ... .:J.! ±....2 other consumers' goods: Total Furniture, radios, musical instruments Refrigerators and other household appliances Residential building repair and modernization Miscellaneous retail +1 +4 -20 +19 ... ... ... ... Wholesale financing.--The November volume of wholesale autonotive financing was about 7 per cent less than in October as a consequence of a smaller volume of transactions in both new and used vehicles. Balances outstanding on automotive ~~d other goods rose during the month. Ratio of paper acquired to balances outstanding.-The ratio of paper acquired during November to balances outstanding at the month-end was 35 per cent or a drop of 4 points from that of October • • Note. November data, based on returns from 11.1 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 SALBS FIIWICB COIIPA:NIBS Table 1.--AutCiDOthe and DiwtsUted Fill&ilolng by Sales FiJIIlllce Com;anies Inde:us ot Outstand1na; Balances; December 31, 1939 • 100 !{ End of month and year Total Retail all sales automot1w financing Wholesale automotive Wholesale other than automot1w Retail other consumers• goods Industrial, c01111118rcial, and farm equipment 1'939 •••••••••••••••••• 100 100 100 100 .100 100 1940 •••••••••••••· ••••• 1:36 1:32 169 140 129 1:31 1941 •••••••••••••••••• 152 149 17S 250 148 147 1942 •••••••••••••• •.••• 53 :37 112 40 76 61 1943 •••••••••••••••••• 20 1:3 40 8 :30 27 1944 •••••••• ~ ••••••••• 18 15 24 11 26 26 1945·· ••••.••••••••.•• 22 18 27 .38 .39 2:3 191.6· •••••••••••••••• 59 42 90 224 105 59 1946 -November ••••••• December••••••• 5.3 59 .38 42 78 90 177 224 97 lOS 57 59 1947 - .lulUBl'7••• ;. •••• Febrt.J.8r7••••••• 62 68 7.3 78 82 87 91 94 100 lOS lll 45 48 5.3 58 62 66 69 72 75 79 8:3 95 105 lll 110 106 111 109 10:3 1.22 252 287 .325 :341 :351 .346 .3.36 .3.3.3 :321 :310 .359 110 116 60 61 68 67 70 71 74 87 86 92 )Ja.rch•••••••••• April •••••••••• J.fa.y'•••••••••••• J'UDe ••••••••••• Jul7·· ••••.•••• August ••••••••• September •••••• October•••••••• November ••••••• 124 1:38 124 1:36 145 157 168 180 192 206 218 89 Indexee ae of DeceUiber 31 for the years of 1939, 1940, and 1941 are baeed on figures reported by &alee .finance COUipaniee on a eupple1118ntary report form which accaapa:oied the· regular monthly report form for January 1942. Succeeding indexes are deri wd by calculating the percentage change• o£ the outetanding balancee reported by salee finance companiee for each month f'rlllll those reported by the same compa:oies for the preceding month, and by linking these percentages to the indexes for the preceding·month, Table 2 .--Relatiw Importance of Loans Made by Sales Finance COIIlpaniee During November 1947 and Outstanding Balances a.t End c:£ Month Paper acquired durinr; month Clan of paper Amount Outstanding bala.noee. end of month Percentage of total Amount Percentage of total !f...... •• $472 .369. 204 100 $1.347.946 16.3 100 Total loan& ••••••••••••••••••••••••• 1Q 7 W,81o,77Q 61,146,659 88,664,111 ll Buaineaa loanB •••••••••••••••••••• . !J,7 .~J:90.3MJ. 12,841,845 :34,648,495 !:/• •........ ,. 424,878,864 90 1,198,135,:393 89 Total. all classes• of paper Small (personal) loans •••••••••••• Total aalea finllll cing 3 4 7 Included 1n thia claeeification are only thoee firms•which, in addition to their sales financing operations, reported loan activities. . SALIS FIIWICI CXIIPAIIUS .e fable a.-...a~iw aad D1wraitie4 FiDaDoiq by Sal.. FiMDae Ccapalllea Paper Aoquired Durlq November 1947 ad Baluoea 0Utatan41q at b4 ot Jlonth Vol- ot paper aoquired during November 1947 Cla11 ot paper " By all 0011pamea reportiq By oCIIIplldea reportiq $111,160,786 267,095,997 10,167,120 38,055,980 8,377,029 Total ealea financing ••••••••••• 439,003,846 434,856,912 !/ y 18 132 40 12 13 1,242,142,292 35 . ba - · $113,271,266 268,861,945 10,172,721 .38,209, 724 8,488 2190 616,975,725 202,309,185 25,550,694 3.30,783,006 66,523,682 1947 '"!~,•tan41~ Total retail autcaoti w ......•.•..•.•...•• Total wholeeale automotiYe•••••••••••••••• total wholeaala - other thaD automot1~ ••• Total retail- other oonaumara• gooda •• , •• Induatrial, oommeroial, ad tara equipment !I latio paper aoqulrld to outataadli' bllanoea OUtatu41q baluoea November 30, ;;> Data are baaed on figurea frca aalee finance oCllllpaniea able to report both their paper acquired and their outatuding balancee. Ratioa obtained by dividing paper acquired (oollllllli 2) by outstanding balancea (oollllllll a). Table 4 .-•llulllbar ot Care Financed and Vol- of Paper Acquired by Salea Finance Ccapanlea During November 1947 • lulnbar ot care I"' Cla11 of paper • e I I"' ! ... !lumbar Paper Percentage ot total acquired Dollar '101- Percentage ot total !I 100 Total retail autCEoti w . ...........•••• 92 2740 100 $ 91,924,309 lew paaaen11r oar•••••••••••••••••••• Uaed paaee~r oar•••·••••••••••••••• Uaed commercial oar•••••••••••••••••• 34,096 7,274 47,171 4,199 37 8 51 4 43,135,319 10,548,757 34,737,686 3,502,547 Total wholesale automotive ••••••••••••• 172.2~5 100 241 1159 1672 100 New oars (passenger and commercial) •• 164,287 14,948 92 8 224,471,4.30 16,688,242 93 7 Bew commercial oar••••••••••••••••••• Used care (pasaen~r and oom.eroial). 47 ll 38 4 !/ Data are baaed on reporta from aalea finance oompMies providing a breakdCIWil of their retail and wholesale automotive financing. These amounts are less thaD those reported in table a due to the excluaion of same data for which breakdown• were not available • . -) Table-5.--Volume of Diveraified Sales Financing During November 1947 • Cla11 ot paper Dollar YOlume ot paper aoquired Retail - other ooneumera• goodaa Furnlture, radioa, pianoa, and other auaioal ina~nt••• Refrigerator• and other houaehold applianqee •••••••••••••• Residential building repair• and modernisation, .......... . 111aoellaneoue retail •••••••••••••••••••• •.• •.• •••••••••••••• $ 1,430,733 4,841,486 25,119,458 6 1 460 1052 Total retail - other oaneumere• good•••••••••••••••••••••••••• Total Wholesale- other thaD autamot1~••••••••••••••••••••••• Induetrial, o-roial, and tara equipment ................... . 37,851,729 10,172,721 8,488,190 Total diversified tiaanoin&••••••••••••••••••• !f Percentage ot total 3 9 44 11 !I 67 18 15 100 Data are baaed on report• ·trGID aale!l tinuoa OOIIIp&niel prov141q a breakdOWD ot their retail financing of other ooneumere' goode. Thil 1111011J1t 11 loBI than that reported in table a d'118 to the exolualon of 10111 data tor which breakclOWDa •re not a 'VIIllab~.