Full text of G.20 Sales Finance Companies : June 12, 1952

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BOARD: OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
0.20

June 12, 1952
SALES FINANCE COMPANIES
APRIL 1952

Retail financing'—Sales finance company purchases of retail automotive paper in April increased
15 P@r cent over the preceding month, reflecting gains in all items • Purchases of new passenger car paper
increased for the first time since last August, while used-car financing increased for the fourth successive
month. Purchases of commercial-car paper also increased substantially. At the end of April, outstanding
balances of retail automotive paper were 2 per cent above those of the preceding month-end and slightly
above the level of a year ago.
Purchases of other retail instalment paper by sales finance companies expanded 10 per cent in
April. The volume of household appliance paper and repair paper acquired increased 12 per cent and 2lt per
cent, respectively. In contrast, purchases of furniture and television paper declined 13 per cent. Despite
the overall monthly expansion in acquisitions, outstanding balances of other retail instalment paper at the
end of April were 3 per cent belew those of the preceding month-end.
Retail Financing by Sales Finance Companies

Class of retail paper
Automotive:

Percentage change, March 1952 to April 1952
Number
Volume of paper
Outstanding balances
of cars acquired during month
end of month

Total retail

Passenger cars:

New
Used

+ 2

+16

+15

Commercial cars: New
Used
Other consumer goods:

Total

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

+16
+16
+lh
+17
+10
-13
+12
+21*
+12

Wholesale finanoiy—Wholesale automotive paper acquired during April increased about 13 per cent
over the preceding month. Outstanding balances at the month-end were up about 1* per cent, bringing these
balances to about the year-age level.
Acquisitions ef wholesale paper on other consumer goods, however, declined substantially during
the month. Outstanding balances at the end of the month were virtually unchanged from the March level, but
were down sharply from April 1951.
NOTK.—April data, based on returns from 108 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 FINANCE COMPANIES

Table 1 .—Automotive end Diversified Financing by Sales Finance Companies
Indexes of Outstanding Balances: 191*7-191*9 average = 100 a/

Wholesale
other
than
automotive

Retail
other
consumers*
goods

Industrial,
commercial.
and farm
equipment

Total
all
sales
financing

Retail
automotive

Wholesale
automotive

1939
19U0
19ltl
191*2
191*3
19U*
191*5.
19U6
191*7
191*8

68
92
103
36
U*
12
15
1*0
81
118
155
198
202

76
101
1U*
28
10
11
H*
32
67
115
190
21*8
21*8

55
92
96
61
22
13
15
1*9
89
138
118
162
197

21*
31*
61
10
2
3
9
55
97
111
81
126
120

1*9
6U
73
38
15
13
19
52
112
111*
92
87
75

100
131
11*7
61
27
23
23
59
89
116
107
130
151

1951-April

200
202
205
202
203
203
203
203
202

238
21*1
21*5
21*8
253
256
254
251
21*8

209
219
221
203
185
178
186
196
197

231
220
202
181
156
11*7
139
130
120

77
76
7U
72
73
71*
71*
71*
75

136
138
11*0
11*3
11*6
11*9
11*9
150
151

196
196
196
200

2lt3
21*0
238
210.

181
189
199
208

116

73
72
71
69

156

End of month
and year

October •#••••••<>•

1 5 1
1 5 2

1 6 0
1 6 3

168

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 companies for the preceding month, and by linking these percentages
to the indexes for the preceding month.

Table 2.—Relative Importance of Loans Made by Sales Finance Companies
During
April 1952
and Outstanding Balances at End of Month

Outstanding balances,
end of month

Paper acquired
during month
Clafts of paper
Amount

Percentage
of total

Amount

Percentage
of total

•1,020,710,11*8

100

$ 3 , 6 9 6 , 2 3 8 , 0 1 6

100

933,130,369

91

3,U21,123,772

3

6

275.11u.2uu
15U,5U5,720
120,568,52U

$
VO

29,611,806
57,967,973

CO
->3

a/

1 3 6

9

3

7

u
3

9 3

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




Page 3
SALES FINANCE COMPANIES

Table 3.—Automotive and Diversified Financing by Sales Finance Companies
Paper Acquired During
April 1952
and Balances Outstanding at End of Month
Volume of paper acquired
duriag April 1952
Class of paper

By companies
reporting
outstanding
balances a/

By all
companies
reporting

Outstanding
balances
April 30,
1952 a/

Ratio paper
acquired to
outstanding
balances ty

Total retail automotive
<357,695,053
Total wholesale automotive
535,035,283
Total wholesale - other than automotive...
13,671,090
1
Total retail - other consumers goods
28,51*8,668
Industrial, commercial, and farm equipment
13.985.b83

#351,63b,778
531,897,778
13,239,197
26,1*95,252
13.372.127

$2,1*98,71*1,561*
597,325,502
1*6,161*, 322
208,93l*,600
125.607.857

89
29
13
11

$918,935,577

$939,639,132

$3,1*76,773,81*5

27

t/

Ik

their outstanding balances•
Ratios- obtained by dividing paper acquired (column 2) by outstanding balances (column 3).
Table 4.—Number of -Cars Financed and Volume of Paper Acquired
by Sales Finance Companies During April 1952

Number of cars

Paper

acquired

Class of paper
Number

Total retai 1 automoti ve

283,719

New passenger cars
Used passenger cars
Used commercial cars

71*, 912
12,269
180,1*80
16,058

k
6k
6

300,973

100

21*0,702
60,271

80
20

26

$305,738,21*3 a/
117,029,750
19,657,028
156,357,815
12,693,650

8

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

100

Dollar
volume

i
i

Total wholesale automotive.

Percentage
of total

1*67,51*5,318
60,1*1*6,1*21

Percentage
of total
100
38
7
51

k

100
8 9

11

a/ 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 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 April 1952

Dollar volume
of paper acquired

Class of paper
Retail - other consumers1 goodss
Furniture, radios, pianos, and other musical instruments••
Refrigerators and other household appliances.
Residential building repairs and modernisation.
Total retail - other consumers1 goods...
Total wholesale - other than automotive
Industrial, commercial, and farm equipment

*

Percentage
of total

$ 5,651,370
9,022,565
3,71*6,051
8.613,378

10
16
7
16

$27,033,361* a/
13,671,090
13,985,1*83

it9
25
26

$51*,689,937

100

Data are based on reports from sales 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.