Full text of G.20 Sales Finance Companies : June 18, 1947

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
G.20

June 18 1 J.947
SALES FINANCE CQIIPANIES

>I

i

APRIL 1947

I

Retail financing.--sales finance companies continued to report gains in the volume of retail
instalment financing in April. Increases over March in automotive paper acquired and in diversified
financing were accompanied by further rises in respective outstanding balances.
The S per cent gain in total retail automotive financing shown in the table below, reflected
increases in all types of cars financed except new commercial vehicles. New passenger car paper
advanced 6 per cent while new commercial vehicle paper was down 3 per cent compared with respective
.March levels. Trends in April automobile production were somewhat similar with output of passenger
cars increasing about 4 per cent and of commercial vehicles declining approximatelY 2 per cent.
Retail financing of consumer goods other than automotive was 11 per cent higher than that
of the preceding month. Decreases in paper based on miscellaneous retail sales and in furniture
paper were more than offset by substantial increases in residential repair and modernization credit
and in paper based on sales of refrigerators and appliances.
Retail Financing by Sales Finance Companies

Class of retail instalment paper

Percental!:e chan~?:e. March l.947 to April 1947
Number
Volume of paper Outstanding balances,
of cars
acquired durin!!: month
end of month

.!..2

.!..2

Passenger cars:

New
Used

+8
+4

+6
+7

Commercial cars:

New
Used

- 2
+4

- 3
+

s

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

.:!:!1

.!..2

- 2
+22
+20
- 2

...
...

Automotive:

Total retail

Other consumers• goods:

Total

Furniture, radios 1 musical instruments
Refrigerators and other household appliances
Residential building repair and.modernization
Miscellaneous retail

.!..2

...
...

Wholesale financing.--The April volume of wholesale automotive financing was above that of
March, reflecting gains in both new and used vehicle paper. As a result of ·the rapid turnover in
Wholesale automotive financing outstanding balances declined slightly during the month. A drop of
S per cent in wholesale financing other than automotive was accompanied by a small increase in
outstanding balances.
Ratio of paper acquired to balances outstanding.-Paper purchased in April was about 42 per
.cent of the amount outstanding at the end of the month representing a decrease of one percentage
point compared with March. All classes of paper except wholesale automotive paper showed lqwer ratios.
Note. :April data, based on returns from 153 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, the.y are not comparable nth totals of preceding months.




Page 2
SALES FINANCE COl4PANIES

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

Retail
other
consumers'
goods

Industrial,
commercial,
and farm
equipment

100

100

100

169

140

129

131

149

175

250

148

147

53

37

112

40

76

1943, •••••••••••••••••

20

13

40

8

30

27

1944 ••••••••••••••••••

18

15

24

11

26

26

1945 ..................

22

18

27

38

39

2.3

1946 ••••••••••••••••••

59

42

90

224

105

1946 -April •••.•.••••

29
31
33
.37
41
44
49

22
24
26
28
30
33
36
38
42

35
.37
40
48

68

51
57
62
69
75
82
90
97
105

59
35

62
68
73
78

45
48

105

58

110

End of month
and year

Total
all
sales
financing

1939 ••••.•••••••••••••

100

100

100

1940 ••••••••••••••••••

136

132

1941 ••••••••..••.•••.•

152

1942 •••••...••••••••••

May ••••••••••••

June •••••••••••
July' • • • • • • • •. • •

August •••••••••
September ••••••
October ••••••••
November •••••••
December •••••••

1947 - Januar,y ••••••••
February •.•••••
Jlarch ••••••••••

April ••••••••••

Retail
automotive

53
59

Wholesale
automotive

71

81
91
1o6
125
146
177
224

55

57
66
78
90

95

53

252
287
325
341

lll

~

no

U6
124
136

61

.36
38
.38
44
46
49

57
59

60
61
68
67

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 Loaus Made by Sales Finance Companies
and Outstanding Balances at End of Month
During April 1947
Paper acquired
during month
Class of paper
Amount

~

Outstanding balances,
end of month

Percentage
of total

Amount

Percentage
of total

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

$441,7o6,801

100

$1,083,386,096

100

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

50,885,683
16,065,093
34,820,590

12
4
8

168,955,949
83,279,994
85,675,955

16

Total sales financing ~···········•

390,82l,ll8

88

914,430,147

84

tl

8

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



SALES FIIWICI!: CXBIPAIIIBS

Table 3.-~utamoti~ and Di~reitied Finanoins by Sales Finance Companies
Paper Acquired Durins April 1947
and Balances OUtstanding at End ot Jlonth
Volume ot paper acquired
during April 1947
Claaa ot Pftper

By all
companies
reporting

By oCIIIlpanies

reporting
outatandi;,
balanoea a

Outstanding
balances
April 30,

!947

!I

Ratio paper
acquired to
outstandi;,
balances b

Total retail automotive •••••••••••••••••••
Total wholesale automotive, •••••••••••••••
Total wholesale - other than autamoti ve • ••
Total retail- other consumers• goods •••••
Industrial, commercial, and tano equipment

$103,909,95!
252,437,832
8,179,847
35,838,718
1,866,861

$102,626,437
251,878,547
8,163,226
34,892,521
12737 2453

$480,948,489
180,227,613
25,5ll,3J.9
246,631,!87
102 886 1701

21
140
32
14
16

Total sales financing •••••••••••

$402,233,209

$399,298,18l:!

$944,205,309

42

!Y'

Data are based on figures tram sales finance companies able to report both their paper acquired and
their outstanding balances.
~ Ratio& obtained by dividing paper acquired (column 2) by outstanding balances (column 3).
Table 4.--MvEber ot Care Financed and Volume ot Paper Acquired
by Sales Finance Companies During April 1947
Humber ot cars
Claee ot paper

Paper

acquired

Humber

Percentage
ot total

Dollar
volume

••••••••••••••••

ll!!.220

100

a a2,6211,1102 !I

lQQ

llew passenger oars •••••••••••••••••••

New commercial oars ••••••••••••••••••
Uaed passenger cara ••••••••••••••••••
Used commercial oars •••••••••••••••••

33,152
7,443
68,690
5,265

29
6
60
5

34,276,8o6
10,009,753
41,571,912
3,76$,931.

38
11
47
4

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

122.442

100

~231,208,0h2

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

168,358
31,084

84
16

201,$oo,oo6
29,708,0.)6

Total retail

automo~ive

Percentage
ot total

!I

100
87
13

!Y' Data

are based on reports from sales tinanoe companies providing a breakdown ot thsir retail and
wholesale automotive financing. These amounts are less than those reported in table 3 due to the
exclusion ot same data tor which breakdowns were not available.

Table 6.--Volume ot Diversified Sales Financing During April 1947

-

I

ClaBB ot paper
Retail - other oons~aers' goodsa
Furniture, radios, pianos, and other musical instruments ••
Refrigerators and other household appliances ••••••••••••••
Residential building repairs and modernization ••••••••••••
Miaoellaneoua retail, ••••••••• , ••••• ,,., ••••••••••.• , •.•••
Total retail - other oonaumers• goode •••••••••••••••••••••••••
Total wholesale- other than automotiva •••••••••••••••••••••••
Industrial, commercial, and farm equipment ••••••••••••••••••••

Total diversified financing •••••••••••••••••••

Dollar

volume

ot paper acquired

$ 1,833,092
3,591,984
19,485,031
10,1()2,008
$35,019,115 a/
8,179,847 11 866,861
$4S,o65,823

Percentage
ot total

4
8

43
23
78
18

4

100

Data are based on reports from sales finance companies providing a breakdown ot their retail
financing ot other consumers• goods. This amount is leas than that reported in table 3 due to the
exclusion ot same data tor which breakdowns were not available.