Full text of G.20 Sales Finance Companies : January 11, 1950

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
January 11, 1949

0.20
SALES FINANCE COMPANIES

NOVEMBER 1949
Retail f'inancipg.--November purchases of automobile instalment paper were somewhat
larger than those for october but purchases of other retail instalment paper declined according
to the reporting sales finance companies. outstanding balances on automobiles continued to
expand while those based on other goods were further reduced.
The 2 per cent rise in dollar volume of automobile paper acquired, as shown in the
table below, renected increases in the financing of all types of vehicles except new commercial
vehicles.
Financing of goods other than automobiles was 2 per cent below the October total but
trends by type of paper were mixed. Declines were reported in paper based on refrigerators and
other household appliances, and miscellaneous sales, while increases were reported in the other
classifications.
Retail Financing by Sales Finance Companies

Class of
Automotive:

ret~il

instalment paper

Total retail

Percentage change October 13h9 to November 1~49
Number
Volume of paper
Outstanding balances,
of cars acquired during month
end of month

!....!

~

+ 2

...
...
...

-- 2

--

4

Passenger cars:

New
Used

+ 2
+ 2

+
+ 3

Commercial cars:

New
Used

- 9
+ 1

-10

Other consumer goods:

Total

Furniture, radios, musical instruments
Refrigerators and other household appliances
Residential building repair and modernization
Miscellaneous retail

!..J

+

5

- 3

+ 7
-6

...

2

...
...
...
...

Wholesale financing.--Reporting companies financed a smaller volume of wholesale transactions in new and used vehicles in November than in October. Balances outstanding based on such
transactions declined further during the month. Wholesale credit for other goods was also in
smaller volume and balances outstanding continued to contract.
Ratio of paper acquired to balances outstanding.--The turnover rate of receivables as
measured by the ratio of paper purchased during the month to outstanding balances at the end of the
month decreased 3 percentage points to 26 for November.
NOTE.--November data, based on returns from 124 sales finance companies, are compiled
in the ssme 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 I.--Automotive and Diversified Financing by Sales Finance Companies
Indexes of Outstanding Balances1 December 31, 1939 • 100 !/

End of month
and year

Total
all
sales
financing

1939··················

Retail
automotive

Wholesale
other
than
automotive

Retail
other
consumers'
goods

Industrial,
commercial,
and farm
equipment

100
140
250
40
8
11
38
224
394
454

100
129
148
76
30
26
39
105
226
232

100
1.31
147
61
27
26
23

119
174

88
151

100
169
175
112
40
24
27
90
163
252

1948--November •••••••••
December •••••••••

167
174

148
151

211
252

418
454

238
232

116
116

1949-January ••••••••••
February •••••••••
March ••••••••••••
April ••••••••••••

177
180
184
188
191
198
203
214
225
232
233

152

273
289
281
260
219
225
227
242
279
294
267

484
561
571
551
515
479
430
417
400
371
361

221
214
207
203
202
203
203
202
199
195
190

118
117
111
112
112
lll
111
111
ll.O

1940 ••••••••••••••••••
1941 ••••••••••••••••••
1942 ••••••••••••••••••
1943 ••••••••••••••••••
1944 ••••••••••••••••••
1945 ••••••••••••••••••
1946 ••••••••••••••••••
1947 ••••••••••••••••••
1948 ••••••••••••••••••

May •••• • •••••••• •

June •••••••••••••
July •••••••••••••
August •••••••••••

September ••••••••
October ••••••••••
November •••••••••

100
136
152

Wholesale
automotive

53

20
18
22

59

100
132
149
37
13
15
18

42

155

164
175
188
197
2o6
219
228
237
245

59

69

116

lll

110

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 .--Relative Importance of Loeus Made by Sales Finance Companies
During November 1949 and Outstanding Balances at End of Month
Outstanding balances,
end of month

Paper acquired
during month
Class of paper

Total, ell classes of paper !/••••••••

Amount

Percentage
of total

Amount

Percentage
of total

_1755,021,212

100

S2,856 803.751

100
~

10,590,835
28,473,936

~

11.S,Oh7,2ll

Small (personal) loans ••••••••••••
Business loans •••.••••••••••••••••

1
4

67,314,121
77.133,090

2
3

Total sales financing !/••••••••••••

715,956,441

95

2,711,756,540

95

Total loans .......••............•..•

!f

~2ao6~a711

Included in thi6 classification are only those firms which, in addition to their sales financing
operatione, reported loan activities.

Page 3
SALES FINAICE C<JIPAJliBS

Table 3.-~utamoti~ and Di~reitied Financinc b,r Salee Finance Campaniee
Paper Acquired Durinc November 1949 and Balance• 0ut1tanding at End of Month
Volume of paper acquired
during November 1949
BJ companies
By all
reporting
companiu
outetand1:7
reportinc
balance• a

Clau of paper

Ratio paper
acquired to
out standi,;,
balancee b

Outstandint:
balance a
November;o,

1949 .!

Total retail automotive,,,,,,,,,,,,,,,,,,,
Total wholesale automotive,,,,,,,,,,,,,,,,
Total wholesale - other than automotive,,,
Total retail - other consumers' goode,,,,,
Industrial, commercial, and tare equipment

$280;997 ,998
407,712,398
10,415,846
22,365,507
7,149,471

$279,216,.366
4o6,455,o5o
10,405,137
22,156,162
7,001,873

$1,951,3ll,016
417,338,386
27,410,368
290,908,ll9
82,109!660

14
97
38
8

Total sales financing,,,,,,,,,,,

$728,641,220

$725,234,5'88

$2. 769.077 .549

26

!(
!(

9

Data are based on figures from sales finance companies able to report both their paper acquired and
their outstanding balances.
Ratioa obtained by dividing paper acquired (column 2) by outstanding balances (column 3),
Table

of Care Financed and Volume of Paper Acquired
by Sales Finance Companies During November 1949

4.--~umber

Number of oars
Claaa of paper
Number

Paper

acquired

Percentage
of total

Dollar
volume

Percentage
ot total

Total retail automotive ••••••••••••••••

242,592

100

$254z227 2164!/

100

New passenger oar• • , .••••...•.•••••••

commercial cars ••••••••••••••••••
Used passenger oars ••••••••••••••••••
Used commercial oars,,,,,,,,,,,,,,,,,

97,132
13,786
120,777
10,897

40
6
50
4

144,585,539
18,292,787
84,120,874
7,227,964

57
7
33
3

Total wholesale automotive,,,,,,,,,,,,,

256,676

100

$387 2 331 2 38BY

100

New cars (passenger and commercial),,
Used cars (passenger and commercial),

241,133
15,543

94
6

373,795,579
13,535,809

97
3

t~w

!( 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 6,--Volume of Diversified Sales Financing During November 1949

Clan of paper
Retail - other consumer•' good11
Furniture, radioe, pianoe, and other musical instrumenta,.
Refrigerators and other household appliances,,,,,,,,,,,,,,
Residential building repairs and modernization,, ••••••••••
Miaoellaneoua retail,, •••• , ••••••••• ,,., ••••• , •••••..•• , ••
Total retai 1 - other consumers' goods •••••••••••••••••••••••••
total wholesale- other than automoti~•••••••••••••••••••••••

Industrial. commercial, and farm equipment,,,,,,,,,,,,,,,,,,,,
Total diversified financing,,,,,,,,,,,,,,,,,,.

!f

ot

Dollar volume
paper acquired

$ 3,052,425
8,985,282
3,024,586
6,584 2781
$21,647,074 !1
10,415,846
7,149,471
$39,212,391

Percentage
ot total

8

23
7

17

55

27
18
100

Data are based on report• trlliD ealea tinanoe oompaniee providint> a breakdown of their retail
financing of other consumers' goods, This lllllount 1s leu than that reported in table 3 due to the
exolueion of aame data tor which breakdowns were not available.