Full text of G.20 Sales Finance Companies : July 16, 1947

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
July 16, 1947

G.20
SALES FINANCE COMPANIES
14AY1947

Retail finanoiij!.-Sales finance 00111panies reported a slight drop in the volume of retail
autamoti'ftl financing i n y , but continued to show sizable gains in diversified financing. OUtstanding balances on both classes of paper rose further during the month.
Declines in aut0111oti ve financing occurred in all types of oars financed except used
passenger oars. Used passenger oar financing continued to increase and accounted tor about 62 per
cent of the number of oars financed and nearly half of the dollar volume of retail automotive paper
acquired by reporting companies. The number of new passenger oars financed was dawn 1 per cent and
of new commercial oars 11 per cent, but the production of oars and trucks in May declined even more
sharply.

..

The rise of 10 per cent in retail financing of consumers' goods other than automotive reflected marked gains in all classes of paper except furniture paper whi oh Bh011ed only a slight
increase •
Retail Financing by Sales Finance Companies

Class of retail instalment paper

•

Autamoti ve :

Total retail

Passenger oars:

New
Used

Commercial oars:

New
Used

I

~-

other oonsUIIII!Irs 1 goods:

Percentage change, April 1947 to May 1.!147
Number
Volume or paper
OUtstanding balances,
ot oars
acquired during month
end of month

-

- 1

--

- 7
0

- 5
+ 2

-ll
- 4

- 3

...
...
...

--

--

Total

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

- 1

-ll

+10

+ 1
+ll
+10
+10

-+...8

+ 1

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

Wholesale finanoing.-The volume of wholesale automotive financing in May was 2 per cent
below that of April, as a result of decreases in the financing of both new and used vehicles. outstanding balances declined for the second s~ooessive month. Wholesale financing other than automotive
rose 2 per oent above the volume of the preceding month, and outstanding balanoes sh011ed a further
increase during the month.

,

.

.

Ratio of pa~r ac~uired to be",noes outstanding.--The dollar volume of total sales financing
during the month was
outO per cent · the corresponding amount outstanding at the end of the
month, or a decrease of 2 percentage po1nts owr the April ratio.

a

Note .-Kay data, based on returns from l46 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 fran month to month, they are not comparable
with totals of preceding months •




Page 2
SALES FINAliCE COMPANIES

Table 1.--Automotive and Diversified Financing by Sales Finance Companies
Indexes of Outstanding Belanceu December 31, 1939 • 100

!J

Wholesale
other
than
automotive

Retail
other
consumers•
goods

Industrial,
commercial,
and farm
equipment

End of month
and year

Total
all
sales
financing

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

1945 ••••••••••••••••.•

22

18

27

38

39

23

1946 ••••••••••••••••••

59

42

90

224

106

69

1946 -Kay •••••••••..•
June •••••••••••
July •••••••••••
Auguet •••••••••

31
33
37
41
44
49
53
69

24
26
28

71

81
91
106
126
146
177
224

67
62
69
75
82
90
97
105

36
38
38

36
38
42

37
40
48
55
57
66
78
90

62
68
73
78
82

46
48
63
58
62

95
105
111
110
106

252
287
326
341
351

110
116
124
136
146

September ••••••
October ••••••••
Nowmber ••••• ••
Deoember •••••• •

1947 - JaDuary ••••••••
February •••••••
March ••••••••••

April ••••.• , •••
M~Ly •••••••••

•••

Retail
automotive

Wholesale
automotive

30
33

44

46
49
57
59
60
61
68
67
70

Indexes as of December 31 for the years of 1939, 1940, and 1941 ere 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 Loaus Made by Sales Finance Companies
and Outstanding Balances at End of Month
During Kay 1947
Outstanding balances,
end of month

Peper acquired
during month
Class of paper
Amount

Percentage
or total

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

1438.568.573

100

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

47.744.379
16,009,962
31,734,417

Total sales financing !/••••••••••••

390,824,194

Amount

u

Percentage
of total

125 396 649

100

11
4
7

166.667 .~10
85,666,269
79,891,541

lfi

89

959,838,839

85

8
7

Included in thi6 classification are only those firms which, in eddi tion to their. sales. financing
operations, reported loan activities.



Page 3
SALES FIIIANCE C<IIPANIES

Table 3.-~utamoti.- and Di.-rsified Financing by Sales Finance Companies
Paper Acquired During May 1947
and Balances Outstanding at End of Month
Volume of paper acquired
during May 1947
Class of pttper

By all
companies
reporting

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

$103,710,267
248,682,996
8,295,224

Total sales financing •••••••••••

Outstanding
balances
May 31,
1947

By companies

reporting
outstandi:j
balances a

!I

Ratio paper
acquired to
outetandiiJ
bale.nces b

1,551,978

$101,942,275
247,452,939
8,289,274
38,504,810
1,397,897

.517,392,201
173,214,581
26,287,813
263,ll3,950
ll,279,715

20
143
32
15
12

f401,497' 797

$397,687,196

f991,288,260

40

39,257,3~2

~

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 out~tanding balances (column 3).
Table 4.--Number of -Care Financed and Volume of Paper Acquired
by Sales Finance Companies During Kay 1947

..

Number of care
Clase of paper
Number

.

Paper

Percentage
of total

Dollar
volume

acquired
Percentage
of total

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

lll,759

100

• 87,965,207 ~

100

New passenger oara ••••••••.••••••••••
tlew commercial oars •..••••. , .••..••••

used passenger cars ••••••••••••••••••
Used comu~rcial oars •••••••••••••••••

30,942
6,604
69,177
5,036

28
6
62
4

32,739,327
8,945,777
42,640,904
3,639,199

37
10
49
4

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

190,841

100

.227,021,451 ~

100

New cars (passenger and COl:llllercial).,
used cars (passenger and commercial).

162,628
28,213

85
15

199,491,472
27,529,979

88
12

~ Data are based on reports from sales finance compRnies 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 May 1947

..
Class of paper
Retail - other consumers' goode:
Furniture, radios, pianos, and other musical instruments ••
Refrigerators and other household appliances ••••••••••••••
Residential building repairs and modernization ••••••••••••
Miscellaneous retail .••.•.•.••••.••.•••.••.•.••..... ,,,.,.
Total retail- other oonsumers' goods, ••••••••••••••••••••••••

Total wholesale- other than automotive •••••••••••••••••••••••
Industrial, commercial, and fann equipment ••••••••••••••••••••
Total diversified financing •••••••••••••••••••

of

Dollar volume
paper acquired

• 1,860, 732
3,997,100
21,549,211
11,143,901
$38,640,944 ~
8,295,224
1,661,978

Percentage
of total

4
8

45
23
80
17
3

100

Data are based on reports from eales 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.