Full text of G.20 Sales Finance Companies : July 13, 1948

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·•
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM

..,•

July 13, 1948

0.20
SALES FINANCE COIIPANIES

IIAY 1948

·•

Retail financing.--6ales finance companies reported a smaller volume of automotive and
other retail instalment paper acquired in May than in April. Outstanding balances on both classes
of paper 1 however 1 continued to increase during the month.
The 16 per cent drop in automobile paper, shown in the table below, resulted from a
reduction in volume of financing of all types of vehicles. New vehicle credit fell off more
sharply than for used vehicles, probably reflecting in part the fact that motor vehicle production
in May was at its lowest level for the year.
Retail financing in May of goods other than automotive was 7 per cent less than in April.
Reduced volume 11as reported in all types of paper except that based on sales of refrigerators and
household appliances.

•-tit

Retail Financing by Sales Finance Companies

i"

Class of retail instalment paper
Automotive:

Total retail

Passenger cars:

~
I

..

CaJilllercial cars:

New
Used
New
Used

Other consumers' goods:

Percentage change APril 1946 to May 1946
Number
Volume of paper
Outstanding balances,
acquired during month
of cars
end of month

::!l:l

-16

-24
-12

-21
-12

-12
- 2

-10

Total

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

'

,

..

...

l,.
'

.!...2

...
...

-4

...
...

::..1

.Lh

- 2
+

3

-14
- 7

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

Wholesale financing.--The volume of wholesale automotive financing was down in y:ay and
outstanding balances registered a further decline during the month. Diminished activity in May
was also reported in the wholesale financing of nonautomotive goods.
Ratio of paper acguired to balances outstanding.-The turnover rate of total retail and
wholesale paper, as indicated ~ the ratio of paper purchased during the month to balances outstanding at the end of the month decreased by 8 percentage points to 31 for May.

Note.--lolay data, based on returns from 131 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.




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Page 2
SALES FINANCE COMPANIES

e'

~

.

Table 1.--Autamotive and Diversified Financing by Sales Finance Companies
Indexes of Outstanding Balances; December 31, 1939 • 100 ~

-~.

'

End of month
and year

Total
Retail
all
automotive
sales
financing

Wholesale
automotive

Wholesale
other
than
automotive

Retail
other
consumers•
goods

Industrial,
commercial,
and farm
equipment

..

y

.~,o

1939 •••..•.•••••••••••

100

100

100

100

100

100

1940 ••••••••••••••••••

1.36

1.32

169

140

129

1.31

•

1941 ••••••••..••••.•.•

152

149

175

250

148

147

l'!t

1942 ••••••••••••••••••

5.3

37

112

40

76

61

~

1943 ••••••••••••••••••

20

13

40

8

30

27

1944 ••••••••••••••••••

18

15

24

11

26

26

1945 ••••••••••••••••••

22

18

27

38

39

23

1946 ••.•.•.•.•.••.•••.

59

42

90

224

105

59

1947 ••.•.•.......•....

119

88

163

394

226

89

1947-Kay••••••••••••••

82
87
91
94
100
105
111
ll9

62
66

106
lll
109
103
122
124
138
16.3

.351
346
3.36
.333
321
310

145
157
168
180
192
206
218
226

70
71
74
87
86
92

June •••••••••••••
July •••••••••••••

August •••••••••••
September ••••••••
October ••••••••••
NoV9111ber •••••••••
December •••••••••

69
72
75
79
83
88

359
.394

89

89

1948-January••••••••••
12.3
92
167
426
229
92
February •••••••••
127
96
171
2.30
445
94
March ••••••••••••
105
134
175
232
458
98
April ••••••••••••
139
ll.3
1:59
240
517
lll
May. • • • • • • • • •• •. •
119
141
143
250
495
u8
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 compenies for the preceding month, and by linking these percentages
to the indexes for the preceding month.

.,•

..

1
...

•

•

.
.

-1

.,

•

/l

"'

...
Table 2 .--Relative Importance of Loaus Made by Sales Finance Companies
)(ay 1948
and Outstanding Balances at End of Month
During
Outstanding balences,
end of month

Paper acquired
during month
Class of paper
Amount

Percentage
of total

Amount

Percentage
of total

Total, all classes of paper ~··••••••

&509.396.445

100

$1.634.649.678

100

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

44~322~090

ll,l89,437
33,132,653

2
2
7

122.1!12.212
65,325,095
90,154,824

10
4
6

Total sales financing!( ••••••••••••

465,074,355

91

1,479,169,759

90

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



.------------------------------------------------------~------

SAlmi FIIAIICI CXIIPAIIIBS

Table 3.--.Autcaothe ancl Dherdt1ed Finanoiac by Salee FiiiiNloe ec.pam.ee
Paper Acquired Duriac
~ 1948
aud Balauoee. Outetanding at Bnd ot llonth

-···

Volume ot paper acquired
during ~ 1948

•

Cla .. ot paper

r

1948 !I

tJ5o,3n,86o
286,188,312
13,031,799
31,298,569
12,276,316

tl48' 078,438

$ 872,052,036

Total wholesale automotive, •••••••••••••••
Total wholeaale - other thau automot1~ •••
Total retail - other coneumere• goode •••••
Industrial. commercial. and tara equipment

31,170,426
12,2311087

222,839,435
36,842,753
347,209,444
8913o61763

Total ealee financing •••••••••••

$493,166,856

$488,873,485

$1.,568,250,431

y
'!!/

automoti~•••••••••••••••••••

Table

I

~

,.

4.--~ber ot~r11

17
128
35
9

14
31

Financed and Volume of Paper Acquired

1948

!lumber at care
ClaBII ot paper

[~

,....

13,026,~

by Sales Finauoe CCllllpaniee During )IQ'

I

~-·
1---

284,366,930

Data are based on tiguree tram salee finance CCIIIlpan1ee able to report both their paper acquired and
their outstauding balances.
Ratios. obtained by dividing paper acquired (column 2) by outstanding balauces (column 3).

i ,.

I

~31.

report1ac
outatandi;,
balauoee

~

~

Ratio paper
ecqu1red to
outetaudi,;,
balauoea b

OutetaudiDC
balauoee

By all
OCllllpan1el
report1ac

Total retail

-

By 0Cllllpan1el

Number

Paper

acquired

Percentage
ot total

Dollar
,.olume

Percentage
ot total

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

127.709

100

1!,,31 1 396 11!&6 Y

;1,00

New paaabnger car•···~···••••••••••••
New commercial oars ••••••••••••••••••
Used paesenger care ••••••••••••••••••

32,026
11,124

25

l3

Used commercial oara, ••••••••••••••••

6,674

43,775,432
16,978,472
65,103,797
S,S38,44S

t.26o.2.l~a122 :1

:1,00

9

71,885

61

Total wholeeale automoti .................

178 1 507

100

New cars (passenger and commercial) ••
Used cars (paesenger and commercial).

1.48,861
29,6116

83
17

s

225,072,674
35,b62,52S

33

so

4

86
14

!( Data

are based on reports from ealee finance companiee providing a breakdown of their retail and
wholesale automotive financing. These amounts are leas thau those reported in table 3 due to the
exclusion of some data for which breakdowns were not available.

•

Table 5.--Volume at Diversified Sales Financing During

Claee ot paper
Retail - other consumers• goodes
Furniture • radios • pianos • and other mueical inetrumente ••
Refrigerator• and other houeehold appliance•••••••••••••••
Residential building repairs and modernisation ••••••••••••
Mia~llaneous retail ••••••••••••••••••••••••••••••••••••••

Total retail- other oonaumera• goods •••••••••••••••••••••••••

Dollar

~

1948

wlume

ot paper acquired

• 1,573,221
7,848,929
11,775,352
9a3$6.291

Percentage
ot total

3
14
21
17

Industrial, cammercial, and far.a equipmeut ••••••••••••••••••••

55
23
22

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

100

Total wholesale - other tban

automot1~•••••••••••••••••••••••

Data are baaed on reports frCID sales finance cc.mpanies pronding a breakdown of their retail
financing of ether consumer•' goods. Thia amou.ot 1e le11 than that reported in table 3 due to the
exclusion ot eome data for which breakdowna were not a...ailable.