Full text of G.20 Sales Finance Companies : January 4, 1946

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
January 4, 1946
R&S afc - 10

:NOVEJmER 1945

Retail financing.--The ~otal volume of retail financing by sales finance companies during
November was somewhat larger than a month earli~r and end-of-month outstanding balances showed a
further moderate rise. The 6 per cent gain in retail automotive paper acquired was accompanied by
a corresponding increase during the month in the amount outstanding. Outstanding balances on
contracts arising from the sale of other consumers' goods were also 6 per cent larger than at the
end of October, although the volume of paper purchased during November was slightly below that of
the preceding month.
The increase in total retail automotive financing, shown in the table below, was attributable
to a sharp expansion in both number and dollar .volume_ of new-oar paper. The largest gains were in
new passenger car financing which has been at unprecedentedly low levels in recent months. Used
passenger car financing declined somewhat in November bu~ continued to account for about four-fifths
of all retail automotive paper acquired by sales finance companies.
A substantial decline in financing of miscellaneous retail sales was offset in large part
by a considerable increase in paper arising from the sale of refrigerators and other household
appliances and a small gain in repair and modernization financing. Furniture paper acquired showed
a further slight increase in November, but continued in small volume.
Retail Financing by Sales Finance Companies
Class of retail instalment paper
Automotive a

Total retail

Passenger oars:
Commercial carss

Percentage cnange. uctooer J.li4:b to ~ovember J.li'ib
Number of
Volume of pe. per
Outstanding balances,
oars
acquired during month
end of month
+
-2

+154

New
Used

-

New
Used

+ 60
+ 4

other consumers' goods a Total retail
I•

.

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

3

-+ 6
99
-1

.+

-+ 6
•••u
....

4

....
....

-2
--

+ 6
--

+ 53
+

+

6

+ 46
+

3

- 18

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

Wholesale finanoing.--Wholesale automotive paper acquired increased further in ~ovember
but at a much more rapid rate than in the three precedl:ag months. l.ost of the increase continued to
be in the financing of new passenger and commercial vehicles. ~holesale financing other than
automotive was about 10 per cent larger in November than in the preceding month.
Ratio of paper aoqui red to balances outstanding .--Retail automotive paper purchased was
21 per cent and other retail consumer paper 14 per cent of the respective balances outstanding at
the end of the month. The ratio of wholesale automotive paper acquired amounted to about nine-tenths
the balances outstanding at the end of November, a much higher ratio than has prevailed in earlier
months. Other wholesale paper acquired was equivalent to two-fifths of the end-of-month balances.
Note: November data, based on returns fran 164 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 FUA:tiCE COIIPAhiES

Table 1.--Automotive and Diversified Financi~g by Sales Finance Companies
Indexes of Outstanding Balances: December 31, 1939 • 100 !{

End of month
and year

Total
all
sales
financing

Retail
automotive

Wholesale
automotive

Wholesale
other
than
automotive

Retail
other
consumers'
goods

Industrial,
commercial,
and farm
equipment

1939 •.......•.••••••••

100

100

100

100

100

100

1940 ••••••• • ·•.••••••••

136

132

169

140

129

131

1941 ••••••••••••••••••

152

149

175

250

148

147

1942 •••• .••..••••••••••

53

37

112

40

76

61

1943 •••.••..•....•..••

20

13

40

8

30

27

1944 ••••••••••••••••••

18

15

24

11

26

26

N<~vember

18
18

16
15

23
24

10

26
26

25
23

18
18
18
18
18
18
18
18
18
19
21

15
14
14
14
14
14
15
15
15
16
17

25
26
26
26
25
24
20
18
17
18
24

14
15
18
17
16
16
16
19
21
28
32

1944 -

December

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

1945- January •••••••
February ••••••
:Uaroh •••••••••
April

.........

..........
••••••••••

May .• ••••••••••

June
J~ly

........

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

......

11

26
26
26
27
28
29

.:so
31
33
35
37

27

26

:so

32
28
27
27
25
24
24
24

Indexes as of D8cember 31 for the years of 1939, 1940, and 1941 are based on figures reported by
sales finance oompariies on a supplementary report form which accompanied the regular monthly report form for January 1942. Succeeding indexe·s are derived by calculating the percentage
chan~s 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 tr..e indexes for the preceding month.

Table 2.--Relative Importance of Loaus .Made by Sales Finance Companies
During November 1945 and Outstanding Balances at End of .Month
Paper acquired
during month
Class of paper

Outstanding balances,
end o1' month

Amount

Percentage
of total

Amount

Percentage
of total

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

,105,071,341

100

$325,311,097

100

Total loans .......••....•..••...•.••
Small (personal) loans •••.•..•.•••

Business loans ••••••••••••••••••••

32,945!223
9,138,491
23,806,732

32
9
23

87.846.218
45.098,340
42,747,878

27
14
13

Total sales financing!( •••••• ~ •••••

72,126,118

68

237,464,879

73

Inoludea in this classification are only those firms which, in addition to their seles financing
loan activities.


operations, reported


..

Page 3
SALES FINANCE COMPANIES

Table

3.--Automoti~

and Diversified Financing bY. Sales Finance Companies
January 1942 • 100

y

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

I TEll

,..
0

;z;

0

!

R

i'

as

.D

r:

~

<

24
31

24
31

32
41

30 31
38 39

3
4

2
3

3
4

2
4

18 25
17 24

28
24

~

Po

. . .

1945

1944

§ k::s rP
<

~

~

.p

Po
4D

Cll

.p
0

0

•

I>
0

:z;

RETAIL AUTOWTIVE
Total number ot cars financed ••••••••••••••••••••••
Total volume of paper acquired •••••••••••••••••••••
New passenger cars ••••••••••••• Number ••••••••••••
Paper acquired ••••
.New o0111118rcial cars •••••••••••• Number ••••••••••••

Paper

acq~red ••••

29 25
37 33
4
5

3
5

22 30 22
19 25 21

2
4

34

34

45

46

2
3

3
4

30 38
26 30

33 36 40 41
44 50 56 59
3
5

4
6

5

9
11

40 56
30 43

74
56

92
68

48
04

3

Used passenger care •••••••••••• Number •••••••••••• 32
Paper acquired •••• 46

27 26 27 35 33
37 36 37 48 46

46

37 38
63 54

Used

22
46

17 15 19 18
36 30 40 35

18
37

20
41

19 19 31 33
39 39 56 62

34
65

14

16

15

18

16

15

15

12

14

15

32

4

5

6

4

6

5

5

7

5

5

6

Used cars (passenger and commercial) ••••••••••••• 55

65

71

73

80

70

68

56

47

62

56

67

71

46

44

38

49

51

51

58

53

62

63

84

82

COliiiDIB rcia 1

oars ••••••••••• Jumber •••••••••••• 14

Paper acquired •••• 28

34

36 37 43 41
60 64 62 61

WHOLESALE AUTOMOTIVE
(Paper acquired)
Total volume of paper acquired ••••••••••••••••••••• 12
If- cars (passenger and commercial) ••••••••••••••

19

10 22

Dlv.ERSIFIED FINA~CING
(Paper acqUired)
Total diversified financing •••••••••••••••••••••••• 44
Total retail. other consumers' goods •••••••••••••

58

59

53

48

55

63

66

75

69

81

82 104 ~03

Furniture. radios. musical instruments •••••••••

23

24

27

19

26

25

28

27

26

26

24

26

28

Refrigerators and other household appliances •••

14

14

17

16

22

24

33

33

31

28

34

43

62

Residential building repairs and modernization. 133 114

99

94 114 129 161 172 159 173 158 210 216

Miscellaneous retail •••••••••...•••••...••.•••• 139 207 172 154 143 179 137 171 143 242 312 378 311

Total wholesale • except automotive •••••••••••••••
Industrial.

con~ercial,

and farm.equipment •••••••

5
35

5

13

39 54

7

10

8

9

9

11

11

55 206 122

53

50

39

47 43

10 24
90

26
57

Indexes are derived by calculating the percentage changes in the number of cars financed or the
volume of paper acquired by .sales finance companies during each month from the number of ce,rs
financed or the volume. of paper acquired by the same companies during the preceding month. and by
linking these percentages to the indexes for the preceding month. The indexes for "Total retail
automotive," "Total wholesale automotive •" and "Total retail. other consumers' goods" are based on
all figures reported for these items regardless of whether or not breakdowns could be supplied.



Page 4
SALES FINANCE COMPANIES

Table 4,--Automotive and Diversified Financing by Sales Finance Companies
Paper Acquired During November 1945 and Balances Outstanding at End of Month
Volume of paper_acquired
during November 1945
Class of paper

By companies
reporting

Outstanding
balances
November 30,
.1945

Ratio paper
ecquired to
outstandiij
balances b

By all
companies
reporting

balances a

Total retail automotive •••••••••••••••••••
Total wholesale automotive,, ••••••••••••••
Total wholesale - other than automotive •••
Total retail - other consumers' goods •••••
Industriel, con~rcial, and fare equipment

$29,378,983
34,096,386
916,706
10,687,672
275,421

$26,826,640
33,968,011
696,653
9,633,726
2_70, 750

U35,808,477
37,197,255
2,217,653
68,037,156
3,831,196

21
91
40
14
7

Total sales financing •••••••••••

$75,257,167

$73,815,680

$247,091,737

30

outstandi~

!I

Data are based on figures from sales finance companies able to report both their paper ac~uired and
their outstanding balances.
Ratios obtained by dividing paper acquired (column 2) by outetanding balances (column 3),
Table 5.--Number of Cars Financed and Volume of Paper Acquired
by Sales Finance Companies During November 1945

Number of cars
Cla88 of paper

Paper

acquired

Number

Percentage
of total

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

40,427

100

$24,683,688

New passenger oars •••••••••••••••••••
}Jew commerciel cars •• •••••••••.• , • , •••
Used passenger cars ••••••••••••••••••
Used oomusrcial cars,, •••••••••••••••

427
2,938
34,914
2,146

1
7
87
5

366,898
3,201,925
19,664,295
1,410,570

1
13
80
6

Total wholesale automotive •••••••••••••

40l965

100

$30.432.222

100

!lew cars (passenger and commercial) ••
Used cars (passenger and commercial).

29,283
11,672

71
29

21,166,488
9,263,734

70
30

!(

Dollar
volume

Percentage
of total

!I

100

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 repor.ted in table 4 due to the
exclusion of some data for which breakdowns were not available.

Table 6,--Volume of Diversified Sales Financing During November 1945

Clan of paper
Retsil - other consumers' goods1
Furniture, radios, pianos, and other musical instruments ••
Refrigerators and other household appliances ••••••••••••••
Residential building repairs and modernization ••••••••••••
Miscellaneous retail, ••..... ,., ..... ,, •.•..• , •.......... ,.

of

Dollar volume
paper acquired

~

866,335
539,620
6,538,131
2.616.429

Total wholesale - other than automotive •••••••••••••••••••••••
Industrial, commercial, and farm equipment ••••••••••••••••••••

$10,562,515
918,705
275,421

Total diversified financing •••••••••••••••••••

$11,756,641

Total retail- other consumers' goods•••••••••••••••••••••••••

Percentage
of total

7

5

56
22

!I

90
8

2

100

Data are based on reports from sales finance companies providing a breakdown of their retail
f.inancing of other consumers' goods. This amount is less than that reported in table 4 due to the
 exclusion of some data for which breakdowns were not available.