Full text of G.20 Sales Finance Companies : June 13, 1949

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v

BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
0.20
SALES FINANCE COMPANIES

APRIL 1949
Retail financing.--sales finance companies reporting for the month of April indicated
a small increase in the volume of retail automotive paper acquired, and a marked rise in the
financing of other consumer goods. Outstanding balances on the automobile segment continued to
expand, lihile those based on the sales of other goods showed a further decline.
The slight increase in automobile paper acquired, as shown in the table below,
resulted from small gains in passenger car financing, libich were nearly offset by declines in
commercial vehicle financing. The only category of paper to show an appreciable gain over the
March volume was that based on sales of used passenger cars.
A rise of 12 percent was reported in the volume of credit for consumer goods other
than automobiles. Furniture paper, and that based on sales of refrigerators and other household appliances showed marked increases, while the remaining classes of paper registered declines.
Retain Financing by Sales Finance Companies

Class of retail instalment paper
Automotive:

Total retail

Passenger cars:

New
Used

Commercial cars:

New
Used

Other consumer goods:

Percenta2e chan2e March 19 9 to Aoril l9h9
Number
Volume of paper
outstanding balances,
of cars acquired duriM month
end of month
+3

-

+1

-

+6

+1
+3

- 1
- 1

- 2
- 4

0

Total

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

-+12

+9
+34
- 6
- 2

+7
-...

...
...
...

- 2
-...
...
...
...

Wholesale financing.--A decrease in wholesale paper acquired resulted from drops in
both automotive and other wholesale financing, and outstanding balances on these two classes of
paper declined during the month.
Ratio of paper acquired to balances outstanding.--The turnover rate of total retail
and wholesale paper as indicated by the ratio of paper purchased during the month to balances
outstanding at the end of the month decreased 2 percentage points to 31.

NO'IE.--April data, based on returns from 131 sales finance companies, are compiled
in the same manner as those shown in earlier reports. Agrregates represent only the totals for
the reporting companies and, since the reporting s~~ple is not identical from month to month,
they are not comparable with totals of preceding months.




Page 2
SALES FINANCE COMPANIES

Table I.--Automotive and Diversified Financing by Sales Finance Companies
Indexes of Outstanding Balances: December 31, 1939 • 100 ~

End of month
and year

Total
all
sales
financing

Retail
automotive

Wholesale
automotive

100
169
175
112
40
24
27
90
163
252

159
143

1939 ••••••••••••••••••
1940. • • • • • • • • • • • • • • • • •I
1941 •••••••••••••••••
1942 ••••••••••••••••••
1943 •••••••••••••••••
1944 ••••••••••••••••••
1945 •••••••••••••••••
1946 •••••••••••••••••
1947 •••••••••••••••••
1948 •••••••••••••••••

100
136
152
53
20
18
22
119
174

100
132
149
37
13
15
18
42
88
151

1948-April •••••••••••
Jl.D'le •• • • • •• • • • • • •
July •••••••••••••
August •••••••••••
September •••••••
October •••••••••
November •••••••••
December •••••••••

139
141
147
151
155
157
163
167
174

113
119
123
130
136
142
145
148
151

1949-January ••••••••••
February •••••••••
March ••••••••••••
April •••••••••••

177
180
rl84
188

155

59

May •••••••••.•••

Wholesale
other
than
automotive
100

1.40

250
40
8
11
38
224
394
454

517
495
462
448

165

164
165
154
191
211
252

152

396

362
389
418
454

273
289
281
260

r164
175

484
561
571

551

Retail
other
consumers'
goods

Industrial,
commercial,
and farm
equipment

100
129
148
76

100
131
147
61
27
26
23

30
26

39

59

105
226
232

89
116

240
250
251
250
249
247
243
238
232

ill
118
121
120
119
119
118
116
116

221
214
207
203

118
117
111
112

~

Indexes as of .December 31 for the years of 1939, 1940, end 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.
r - Revised.
Table 2.--Relative Importance of Loans Made by Sales Finance Companies
During April 1949
and Outstanding Balances at End of Month
Paper acquired
during month
Class of paper
Amount

Outstanding balances,
end of month

Percentage
of total

Amount

Percentage
of total
100

Total, all classes of paper~ ........

$711,436 721

100

$2,299.548.575

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

:n ,612,878
10,562,966
27,049,912

r;

l!21J,682,232

7

1

4

73,070,712
81,611,520

3
4

Total sales financing~ ............

673,823,843

95

2,144,866,343

93

~

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.-~utomotive and Diversified Financing by Sales Finance Companies
Paper Acquired During April 1949
and Balances Outstanding at End of Month
Volume of paper acquired
_dlll'intr An·•i1 1QJ,Q
By c01>1panies
By all
reporting
companies
cutstendi~l
reporting
balances a

Class of paper

Outstanding
be lances
April 30,
1949 :::1

Ratio paper
acquired to
outstandii'
bele.noes b

Total retail automotive ...................
Total wholesale eutomotive ••••••••••••••••
Total wholesale- other than automotive.,,
Total retail - other consumers' goods.,.,,
Industrial, commercial, and faro equipment

$233,839,730
401,620,376
16,523,574
22,670,317
8,106,107

$236,790,287
400,283,886
16,509,515
22,535,094
8,021,763

$1,362,221,062
400,049,717
41,828,284
31:>,439,559
83,910,164

17
100
39
7
10

Total sales financing •••••••••••

$687,760,104

$684,140,545

$2,200,448,786

31

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 outstanding balances {column 3),
Table

of ~ars Financed and Volume of Paper Acquired
by Sales Finance Companies During April 1949

4.--~umber

Number of cars
Class of paper

Paper
Dollar
volume

Number

Percentage
of total

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

205l483

100

~2o8,7Y.2,o!JJ!I

New passenger cars •••••••••••••••••••

65,539

!Jew commercial cars • ........••••.••••

Used passenger cars ••••••••••••••••••
Used ccmu~rcial oars •••••••••••••••••

13,939
116,778
9,227

94,182,210
19,512,867
88,157,618
6,896,346

Total whole sale automotive, , • , ••• , • , , ••

242,992

32
7
57
4
100

l~ew cars {passenger and commercial),,
Used cars {passenger and commercial).

221,418
21,574

y

91

9

acquired
Percentage
of totel

]QQ

$373,932z482

45
10
42
3
100

354,075,275
19,857,207

95
5

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 1949

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

Total retail- other consumers• goods •••••••.•••••••••••••••••

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

of

Dollar volume
paper acquired

$ 1,547,430

Percentage
of total

10,654,040
2,815,284
7.249.200

3
23
6
16

$22,266,65J.e/
16,509,515
8,106,107

48
35

$46,882,276

17
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.