Full text of G.20 Sales Finance Companies : July 30, 1945
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BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM t July 30, 1945 R&S sfo - 5 SA.LF.S FINANCE COKP~IES JUNE 1945 The number ot used paeeenger ·care tiaanoed by eaiee fiaanoe companies wae 10 per oent larger in June than in the preoeding aonth while the dollar volUM ot paper p.urchaeed rose 14 per oent. The ll per oent decline in number of Mw paasenpr oars tiaanced during JUII8 wae accompanied by a lllll&ll decrease in dollar amount ot paper acquired. Fiaancing· ot II8W cCIIIiiercial vehicles, in June was substantially above that in Jfay, w1 th gains ot 26 ,per cent in number and 16 per cent in dollar volU1118 ot acquirements. The number ot und c0111111ercial vehicles finanef!d rose lo per cent during June and the value ot paper acquired increased 8 .per cent. . . Retail automotive paper outstanding at sales finance companies on JUII8 30 wae 2, per cent larger than at the end ot the preceding month but the index, shown in the chart below, remained unchanged at 14. Retail Automotive Fiaancing by Sales Finance Companies Outstanding Balances at Bnd ot Month, December 31, 1939 • 100 INDEX INDEX ..... 200 r----------r----------~--------,---------~----------,200 150 100 50 0 1941 1942 1943 1944 Wholesale autcmotive outstandings held by sales finance companies decliMd further during June and at the end of the aonth were 4 per cent below the amount held on May 31. Acquirements ot paper arising trCllll wholesale salu ot new passenger and cCIIIIII8rcial vehicles in JUII8 were as per cent larger than in the preceding 11onth, while the dollar volume ot wholesale transactions in used pasaenpr and commercial vehicles decreased 18 per cent. The volume ot retail diversified tiiWlcing in June was 13 per cent above that in the preceding aonth and balances outstanding wre up 5 per cent. Paper arising f5.J"-..ol:lllii!OIIw&:....: furniture, radios, and musical instrUMnts amounted to 6 per cent leas than acqui~ in lofa while the volume baaed on sales ot retrigeratora and other household appliance c Md nearly 14 per cent during the 11onth. Residenti-al repair and modernisation paper acquired in June showed ·an increase of 14 per cent over the preceding month. f ~~ WT7 e,.;... P Wholesale automotive paper acquired during JUII8 amounted to about 42 per cent of the balances outstanding at the end of the month. Retail autClllloti ve paper purchased was 19 per cent ~toDd other retail oonsUIII8r paper aoquired 14 per cent of the respective balances outstanding on June 30. The volume of industrial, camMrcial, and tara equipaent paper acquired was equivalent to only 5 per cent of the balances outstanding at the end of June. · · Note 1 June data, baaed on returns frCllll 176 aaiea finance oompaiiiea, .are ocapiled in tiut ·same manner aa those shown in earli.er reports. Aggregates represent C?nly the totals tor' the reporting companies and, since the reporti:ag sample 1a not identical from month to month, they ate not comparable w1 th totals of preceding aontha. ~ SALES FINANCE COIIPANIIS . ' .< . ·._ . .-·_ . . 'table 1.--.Automothe and. Dhersitied Financing by Sales Fi:il.&.noe Companie.a Indexes of Outstanding Balances& December 31, 1939 • lOO !j .it . ' .. . -y·· ~ Retail automotive Wholesale automotive Wholesale other than automoti w Retail other conswners' goods Inclustrial, commercial, and f-arm equipment 100 100 100 100 100 100 1940 •••••••••••••••••• 136 132 169 140 129 131 1941 •••••••••••••••••• 162 149 17& 260 148 14'1 194-2 •••••••••••••••••• 63 3'1 112 40 '16 81 1943 ••..•••••••••••••• 20 13 40 8 30 2'1 1944 •••••••••••••••••• 18 16 24 11 26 26 24 24 24 26. 26 26 26 32 End of month and year 1939 ••. ..•..•••••••••• Total all sales financing . 194t- June ••••••••••• July~···••••••• Aucuat ••••••••• September •• •••• October •••••••• lowaber ••••••• Deoember ••••••• 1946 - JIIDU&I')' • • • • • •- • • February ••••••• lla:roh. •••••••••• April ........... Jla.y •• •••••••.••• June ••••••••••• 19 19 19 19 19 18 18 18 18 18 18 18 18 . - - .. 16 M 11 16 18 16 16 16 16 29 26 26 24 23 24 10 10 12 10 10 11 16 14 14 14 14 14 26 26 26 26 26 24 14 16 18 1'1 16 16 ' 26 26 26 2'1 28 -29 33 2'1 2'1 2'1 26 23 2'1 26 30 32 28 2'1 \ Indexes as of December 31 for the years of 1939, 1940, and 1941 are baaed on figures reported by sales finance companies on a, au.,plementary report form which accompanied the regular monthly report fol'lll for January 1942. Succeeding indexes are derived by calculating the percentage chan~!l of the out.standing ba],anqes r~ported by sales finance companies for each month from those 'reported by the same ct!llllpan'ies for the preceding month, and by linking these percentages to the indexes for the precedtng,m~nth. I Table 2.-.;.Relathe Importance of Loans Made by Sales Finance C~panies ~ring J a 1946 and Outstanding Balances at End of Month Paper acquired during month \ Class of' paper _Amount balances, end oi' month Out~tanding Percentage of total Amount Percentage of total Total, all classes of paper ~··•••••• 182,664,696 100 1295,964,064 100 Total loans ••. ....•••..•..•••.....•• Smalt.(personal) loans •••••-••••• , , Buaine=se· loans • • ·•..• • ................ 38,013,64'1 ol6 31 29,64'1;611 36 90!804:!668 46,916,.148 44,829,420 Total s_alea financing ·~ •••••••••••• 44,561,04:8 64 205,149,486 69 a.ass.OM 10 16 15 Included in thh classification are only those firms whioh, in add! tion to their sales financing operations, reported loan activitie•• -1 -~ Page 3 .t ' SALES FINANCE COIIPANIIS • .-. Table 3.--Automotiw and Diversified Financing by; Sales Finance Companies January 1942 • 100 3{ lMt ITEJ4 l . ~. o.. • .p g, .p rZ 8 •• ! j • ~ If ... :.. ·i' J • i RETAIL AUTOMOTIVE Total number or cars financed •••• ~ ••••••••••••••••• 39 39 3'1 30 32 Total volume of paper acquired••••••••••••••••••••• 51 51 48 -&0 -&2 t i·~- 1 I~ '~ ! :,..._ : I . !I J: 19t5 New passenger oars ••••••••••••• Number •••••••••••• 9 Paper acquired •••• lS New commercial cara ••••••••.•••• Number • ••••••••••• Paper acquired •••• 6 8 6 8 " " " 6 6 5 s a 6 " 2 s s .so 38 2 11 M 39 -&6 2· " "" 2 s 9 16 18 so 2'1 22 so 22 18 26 28 so 38 lS 16 20 2-& 22 19 26 21 1'1 2-& 24 26 so Used passenger cars •••••••••••• :Number •••••••••••• 46 -&6 -&2 M S6 32 2'1 26 Paper acquired •••• 62 64 69 -&8 61 -&6 S'T 36 2'1 S6 as M S'T 3'1 -&8 -&6 -&6 6S Used commercial oars ••••••••••• ~umber •••••••••••• 12 11 12 16 16 u 22 17 15 19 18 18 20 Paper acquired •••• 26 2-& 2S :n M 28 46 36 so .a 35 37 n WHOLESALE AUTOMOTIVE (Paper acquired) i ' Total volume of paper acquired ••••••.•••••••••••••• (pas~enger 16 10 12 and commercial) •••••••••••••• 5 Used oars (passenger and oollllll8roie.l) ••••••••••••• "' !few oars DIVERSIFIED FINANCING ('Paper acquired) 12 Total retail, other consumers' goods••••••••··~·· ,., F'urni ture. radios, musi oal instruments ••••••••• 21 -&5 56 66 12 1-& '. ~ 46 - ~9 ""58 4:5 59 21 22 23 29 23 2-& " Refrigerators and other household appliances ••• 12 5 5 " " " " -&0 51 -52 6'1 66 65 Total diversified.financing •••••••••••••••••••••••• 3'1 35 -&3 u ..... 29 26 u 24 32 S'T S3 Sl Sl n 16 16 18 16 15 15 ,6 71 "63 1'1 11 18 13 1'1 1-& ' Total wholesale, except automotive ••••••••••••••• Industrial, oon~ercial, and fa~ 58 " equipment ••••••• 68 38 5 5 '1 'TO 68 56 4:9 51 51 58 -&8 65 63 66 1-& '75 2'7 19 26 26 28 2'1 .·' 1'1 16 22 Residential building repairs and modernization. 29 118 14:2 131 136 133 114 99 Miscellaneous retail •••••• , ••••••••••••.••••••• 6 " '13 80 2-& as 28 9t 114 ~29 151 11.'12 61 99 116 113 139 .0'1 112 15-& 14:3 ~'19 13'1 ~?1 3 " 3 63 62 -&8 5 " 36 68 6 13 39 M ., 10 8 55 206 ~22 9 9 63 60 lndexes are derived by calculating the percentage changes in the number of oars financed or the volume of paper acquired by sales finance companies during eaoh month from the number of oars financed or the volume of paper acquired by the same companies during the preceding month, and by linking these percentages to the indexes tor the preceding month. The indexes tor "Total retail automotive," "Total wholesale automotive," and "Total retail, other consumers' goode" are based on all figures reported tor these items regardless of whether or not bre~downs could be supplied. I . ~ ~~·~~ ~~-------...,----------=------------~-...- SAID FIHAJICB ·CCJIPAliiES Table 4,--Automoti~ Paper Acquired During Financing u,y Sales Finanoe Companies and Balances Outstanding at End of Jlonth ~d Di~rsified JUlie 1M6 Volume of paper aoqu'ired durirag JUDe 1M6 Clan of paper By companies By all oompanies reportirag reporting outstandi:J balances a Outstanding balances JUlie so, 194.6 ~ Ratio paper eoquired to outstandi,;, .blllanoea b Total wholesale- other than automoti~ ••• Total retell - other consumers' goods.,,,, Industrial, commercial, and fa~ equipment t22,706,815S 16,9'1'1,690 1580,899 8,080,6.'11 261,819 t22,205,604. 16,M6,070 M8,802 7,8'115,019 26151104. tllT ,0'18,840 158,086,4.04. l,Oll,9M 66,200,9158 4.18401808 19 4.2 M 14. 6 Total sales financing ••••••••••• t4.'1,158'1,1512 ....8,4.215,4.99 t216,21'1,'184 21 Total retai 1 autCIIloti ve •...•••• , ••.•••••.•• £otal whole sale automotive • • ·• .•••..••••••• ' !( Data are baaed on figures from sales finance companies able to report both their paper acquired and y their outstanding balances. . · Ratios obtained u,y dividing paper acquired (column 2) by outstanding balances (column 3). Table 6.--~umber ot cars Financed and Volume of Paper Acquired. JUDe 1M6 u,y Sales Fi11anoe Companies During !!lumber of oare ClaBI of paper Number Total retai 1 automot1 w • ••••.••••••••••• M,604. Bww passenger oar•••••••••••••••••••• 128 Jew commercial cars •••••••••••••••••• Paper acquired Dollar volume Percentage of total Peroentege of total 100 100 ~ '161 161,168 9221807 17,816,8lf 8150,889 1 6 90 152,4.62 1,269 M ••••••••••••• 19,092 100 tl15,882,4.'19 100 New oars (passenger and commercial) •• Used oars (passenger and commercial). 9,1570 4.9 61 8,24.8,296 1 ,4.M,l84o 4.8 9, '122 Uaed passenger care •••••••••••••••••• Used commercial oars ••••••••••••••••• Totel wholesale automoti~ ' " M !/ Da~a y are based on reports from sales finanoe companies providing a breakdown of their retail and wholesale automotive financing, These amounts are less than those reported in table 4. due to the exclusion of some data for which breakdowns were not available. Le11 than one halt of 011.1 per oent. Table 6,--Volume of Diversified Sales Financing During J\11111 19f6 Dollar vol'lllll8 ot paper acquired Cla11 of paper Retail -.other consumers• goodea Furniture, radios, pianoe, and other mueioal inetrumenta •• Refrigerators and other household applianoea,,,,,,,,,,,,,, Residential building repair• and modernisation •••••••••••• Miaoellaneoua retail •••••••••••••••••••••••••••••••••••••• Total retail- other oonaumera• good•••••••••••••••••••••••••• Total wholesale - other than automotl w •••.•..••.•..•..••• ...•. Industrial, oOIIIDIIroial, and tarm equiplll8nt.,,,.,.,,, •.•,, •• ,,., Total diversified tinanoing, •• ,,,,,,,,,,,,,,,. • 84.8,1510 296,4.84. &,160,900 1,862,011 t7,M8,T06 180,899 281,819 .8,689,2215 Percentage ot total 10 " 80 19 !/ 915 "s financing ot other consumers' goods, ' ... .~ '~ 100 !( Data are baaed on reports fraa sales tinanoe companies providing a breakdown of their retail This amount is less than that reported in table 4 due to the were not available. exclusion of some date tor whioh breakd011Jll \ ~ ~