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.