Full text of G.20 Sales Finance Companies : January 14, 1952

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
G.20

January lU, 1952

c

SALES FINANCE COMPANIES
NOVEMBER 1951

Retail finaneing-~Sales finance companies purchased a smaller amount of retail instalment paper
in November than in the previous month. A 9 per cent decrease in purchases of automotive paper, as shown
in the table below, reflected declines in paper purchased for all types of vehicles. Paper arising from
purchases of new commercial cars showed the greatest decline while that for new passenger cars dropped
moderately.
Outstanding balances of retail automotive paper at the end of November showed a decline of 1 per
cent for the second consecutive month.
Retail financing of other consumer goods was also somewhat lower during the month after a moderate
gain a month earlier. Decreases were reported in purchases of paper arising from all types of consumer goods
with the largest decline of 17 per cent in refrigerators and household appliances.
Outstanding balances of paper on consumer goods,other than automobiles, remained unchanged despite
the decline in acquisitions of new paper.
Retail Financing by Sales Finance Companies

Automotive:

Total retail

Passenger cars:

New
Used

Commercial cars: New
Used
Other consumer goods:

Percentage change, October 1951 to November 1951
Number
Volume of paper
Outstanding balances
of cars acquired during month
end of month
-10
i i

Class of retail paper

-20
-15
Total

Furniture, radios, television sets, muscial instruments
Refrigerators and other household appliances
Residential building repair and modernization
Miscellaneous retail

- 1
- 3
-12
-17
-13
- 8

0

- 1
-17
-12
- 8

Wholesale financing—Purchases of wholesale automotive paper were reduced during November, although
outstanding balances of thisclass of paper were 5 per cent above the previous month-end.
The amount of wholesale paper other than automotive purchased was down considerably and outstanding
balances on this class of paper continued to decline.

;
v
NOTE.—November data, based on returns from 106 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.
r




Page 2
SALES FINANCE COMPANIES

Table 1 . — A u t o m o t i v e and Diversified Financing by Sales Finance Companies
Indexes of Outstanding Balances: December 31, 1939 • 100 a ^

End of month
and year

Total
all
sales
financing

1939
19U0
19lil
191*2
19L3
191*1*
19U5
191*6
191*7
19U8
191*9
1950

Retail
automotive

100
136
152
53
20
18
22
59
119
17U
228
291

100
132
1U9
37
13
15
18
U2
88
l5l
2u9
325

100
169
175
112
UO

291
291
287
286
290

29h
298
302
298
299
299
299
299

a/

Wholesale
other
than
automotive

Wholesale
automotive

Retail
other
consumers'
goods

Industrial,
commercial,
and farm
equipment

27
90
163
252
216
296

100
li*0
250
1*0
8
11
38
221*
391*
1*5U
332
516

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

100
131
1U7
61
27
26
23
59
89
116
107
130

328
325

280
296

1*78
516

182
177

132
130

320
315
312
311
316
321
32U
331
335
332
329

291
306
356
382
U01
W 5
372
339
325

61*8
759
906
91*3
899
821*
737
638
599
568
529

171
166
161
156
153
l5o
11*6
11*8
11*9
150
150

132
13U
125
136
138

2h

3hl
358

lhO
3JU3
1U6
1U9
11*9
150

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 November 1951
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

$892,831,024

$3,711*,267,709

100

8U,liU9,66?
30,298,737
51*, 150,930

9
3
6

238,291*,759
131*, 863,758
103,1*31,001

7
U
3

808,381*,357
ef

100

91

3,1*75,972,950

93

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 November 1951 and Balances Outstanding at End of Month

Volume of paper acquired
during November 1951

Outstanding
balances
November 30,
1951 a /

Ratio paper
acquired to
outstanding
balances ty

By all
companies
reporting

By companies
reporting
outstanding
balances a/

$322,819,531
1*1*8,795,701*
9,81i6,l87
28,761,932
9,713,883

$320,711,31*5
U*7,325,195
9,315,1*18
26,1*53,122
9,587,571

$2,595,61*1*, 830
561,166,676
39,550,51*0
223,275,591*
111,636,636

12
80
2i
l
12
9

$819,937,237

$813,392,651

$3,531,27U,276

23

Class of paper

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

aI
U

A

V v-i
rtV
\

4 A
-

r nanar aLcuuired a n d

their outstanding balances.
,
.
Ratios- obtained by dividing paper acquired (column 2) by outstanding balances (column 3).

b/

Table 4,

Number of 'Cars Financed and Volume of Paper Acquired
by Sales Finance Companies During November 1951

Paper

Number of cars
Class of paper
Number

26l,3lil>

Total retail automotive.

82,1.36
12,762
151,625
ill, 521

New passenger cars...
New commercial cars..
Used passenger cars*.
Used commercial oars.
Total wholesale automotive.
Kew cars (passenger and commercial).
Used cars (passenger and commercial)

Percentage
of total

100
31

5
58

6

262,2U0

100

219,615
U2,595

8U

16

acquired

Dollar
volume

>279,089,350 a/

122,721,1160
19,620,027
125,756,559
io,99i,3ob
$ltU3,7118,292 a /
U02,98l,9Ui
liO, 766.3U8

Percentage
of total

100

1*1*
7

15
*
U
100

91
9

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 November 1951

Dollar volume
of paper acquired

Class of paper
Retail - other consumers1 goods:
Furniture, radios, pianos, and other musical instruments
Refrigerators and other household appliances.
Residential building repairs and modernization
Miscellaneous retail
** *

a/

-

$ 8,911,833
7,301,381
lt,011i,6U3
6,896,357

19

|27,12l|,211i a/
9,846,187
9,713,883

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

Percentage
of total

58

$1*6, 681*, 281*

16
8

15

21
21

100

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