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~.