Full text of G.20 Sales Finance Companies : March 28, 1946
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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
March 28, 1946
R&S sfc - 13
SALES nNANCE COIIPARIES
FEBRUARY 1946
Retail finencing.--The volume of automotive ~d other retail financing during February was
leas than in the preceding month, although outstanding balances on both classes of paper continued
to increase.
The decline of 2 per cent in total retail automotive financing, shown in the table below,
resulted in large part from a drop in the volume of used passenger car paper. Financing of used
passenger cars accounted for about 80 per cent of total retail automotive financir.e; in February.
New passenger oar financing, which constituted about 7 per cent of this total, showed gains in
number and dollar volume for the fourth consecutive month.
The decrease in retail financing of consumers' goods other than automotive reflected declines in all classes of paper except paper arising from miscellaneous retail sales.
Retail Financing
<
Total retail
- 5
--
I
Passenger cars:
Co111111ercial cars:
Other consumers• goods:
Sales Finance Companies
Percentage change,
January 1946 to February 1946
Volume of paper
Outstanding balances,
Number
acquired during month
end of month
of oars
Class of retail instalment paper
Automotive:
bw
+18
- 2
--
New
Used
- 9
- 6
New
Used
- 7
- 4
- 7
+ 1
Total retail
I
Furniture, radios, musical instruments
Refrigerators and other household appliances
Residential building repair and modernization
Miscellaneous retail
+15
-- 1
-11
- 7
- 4
+9
+4
--
...
...
...
...
+ 7
-...
...
...
...
Wholesale finanoing.--The volume of wholesale automotive financing during February was
considerably above that of a month earlier, resulting principally from a sharp rise in new car paper.
Wholesale financing other than automotive was also larger than the volume of the preceding month.
Ratio of paper acquired to balances outatanding.---Retail automotive paper purchased was
19 per cent and other retail consumer paper was 12 per cent of respective balances outstanding at the
end of the month, or about the same ratios as for the two preceding. months. The volu:ne of wholesale
automotive paper acquired in February amoun·ced to 89 per cent of the amount outstanding at the end
of the month, representing a gain of eleven percentage pcints over the January ratio. Other wholesale paper acquired ir: February was equivalent to 37 per cent of the end-of-month balances.
Note: February data, based on returns fron• 166 s&les finance ccmplnies, ere 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 precedi~g months.
Page 2
SALES FINANCE COMPANIES
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
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
1945 -February •••••••
March ••••••••••
April ••••••••••
18
18
18
18
18
18
18
18
19
21
22
14
14
14
14
14
15
15
15
16
17
18
26
26
25
25
24
20
18
17
18
24
27
15
18
17
16
16
16
19
21
28
32
38
26
26
27
28
29
30
31
33
35
37
39
26
30
32
28
27
27
25
24
24
24
23
May •••••••• ••••
June •••••••••••
July •••••••••••
August •••••••••
September ••••••
October ••••••••
November ••.•••••
December •••••••
Wholesale
automotive
Retail
automotive
'
•
41
1946 -January •••••.••
23
18
2R
25
44
44
February •••••••
19
25
36
49
27
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 re- .,A
port form for January 1942. Succeeding indexes are derived by calculating the percentage
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changes of the outstanding balances reported by sales finance companies for each month from
those reported by the same compenies for the preceding month, and by linking these percentages
to tr.e indexes for the preceding month.
Table 2.--Relative Importance of Loans Made by Sales Finance Companies
During February 1946 and Outstanding Balances at End of Month
Outstanding balances,
end of month
Paper acquired
during month
Class of paper
Percentage
of total
Amount
Percentage
of total
!/••••••••
U20,437,205
100
~383,474,923
100
Total loans .......••..............••
Small {personal) loans •.........••
Business loans •.. .......•........•
3116511858
8,620,792
23,031,066
26
7
19
96,639,284
49,101,110
47,538,174
211
13
12
Total, all classes of paper
Amount
88,785,347
74
286,835,639
75
Total sales financing!( ••..••.•..••
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Included in this classification are only those firms which, in addH:.ion to their seles financing
http://fraser.stlouisfed.org/
operations, reporte-d loan activities.
Federal Reserve Bank of St. Louis
..
Page 3
SALES FINANCE COMPANIES
Table 3.--Automotive and Diversified Financing bY, Sales Finance Companies
January 1942 = 100
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ITEM
. . .
1945
. .
1946
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. ~. .
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~
.....:>.
::s
'-:>
..;
Q)
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0
:;z;
0
~
'-:>
30
38
31
39
34
45
34
46
33
44
36
5(
40
56
41
59
40
57
42 40
60 68
2
4
2
4
2
3
3
4
3
5
4
6
3
6
9
11
18
19
32
34
38
39
28
24
30
26
38
30
40 56
30 43
74
56
92 148
68 104
83
65
61
49
57
46
27 3f
37 48
33
45
34
46
37
53
38
54
36
50
37
54
43
62
41
61
39
58
43
64
39
60
15
30
11
4(
18
35
18
37
20
41
19
39
19
39
31
56
33
62
34
65
45
88
41
81
40
82
Total volume of paper acquired ••••••.••••.•••••••••
15
18
16
15
15
12
14
15
19
32
30
32
46
Ifew oars (passenger and commercial) ••••••••••••••
4
6
5
5 -7
5
5
6
10
22
21
22
35
Used oars (passenger and oommerolel) •••••••••••••
73
8c
70
68
56
47
62
56
67
71
64
71
74
Total diversified financing •••••.••••••••••••••••••
38
49
51
51
58
53
62
63
84
82
82
93
92
Total retail, other consumers' goods •••••••••••••
48
55
63
66
75
69
81
82 104 103 101 109 109
Furniture, radios, musical instruments •••••••••
19
26
25
28
27
26
26
24
26
28
29
29
26
Refrigerators and other household appliances •••
16
22
24
33
33
31
28
34
43
62
69
76
71
Residential building repairs and modernization.
94 114 129 151 172 159 173 158 210 216 197 204 197
.0
r..
r..
p,
...
j
...:
Total number of cars financed ••••••••••••••••••••••
Total volume of peper acquired ••••••••••.••••••••••
24
31
3~
4
New passenger cars •. .•...••••• • Number •••.. ..•...•
Paper acquired ••••
2
3
New commercial cars ••..•••••.•• Number ••.•••••••••
Paper acquired, •••
18
17
Used passenger cars • •••••••••• • Nuntber • .•.••••••••
Paper acquired ••••
used commercial oars ••••••••••• !JUDl'ber ••••••••••••
Paper acquired ••••
Q)
:>.
t.iJ
::s
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p.
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0
.0
0
...
Q)
RETAIL AUTOMOTIVE
le
I
3
~
2l
2~
WHOLESALE AUTO~OTIVE
(Paper acquired)
DIVERSIFIED FINA~CING
(Paper acquired)
..
-
Miscellaneous retail ••••••••••••••••••••••••••• 154 143 179 137 171 143 242 312 378 311 286 352 383
Total wholesale, except automotive •••••••.••.••••
Industrial, commercial, and farm equipment •••••••
!(
7
10
8
9
9
11
11
10
24
26
26
55 206 122
53
50
39
47
43
90
57
84 164 129
34
37
Indexes are derived by calculating the percentage changes in the number of oars financed or the
volume of paper acquired l:>y sales finance companies during each 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 for the preceding month. The indexes for "Total retail
automotive," "Total wholesale automotive," and "Tote.l retail, other consumers' g;oods" are based on
all figures reported for these items regardless of whether or not breakdowns could be supplied.
Page 4
SALES FINANCE COMPANIES
Table 4.--Autamotive and Diversified Financing by Sales Finance Companies
Paper Acquired During February 1946 and· Balances Outstanding at End of Month
Volume of paper acquired
during February 1946
'
Class of paper
By companies
reporting
By all
companies
reporting
outste.ndi~J
Outstanding
balances
Febru.. ry 28,
1946
Ratio paper
acquired to
out standi,;?
balances b
!I
balances a
Total retail automotive, ..... , •..• ,., ...• ,
Total wholesale automotive, • •. , , •.. , , , • , ••
Total wholesale ~ other than automotive •• ,
Total retail - other consumers• goods •••••
Industrial, con~ercial, and faro equipment
,29, 942,818
50,177,308
1,360,854
10,651,368
770,849
~29,330,254
49,988,424
1,330,165
10,014,576
756,530
$153,136,614
56,344,751
3,578,092
81,136,386
4,734,505
19
89
37
12
16
Total sales financing •••••••••••
$92,903,197
~91,419,949
$298,930,348
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 Cars Financed and Volume of Paper Acquired
by Sales Finance Companies During February 1946
5.--~umber
Number of oars
Class of paper
Paper
Dollar
volume
Percentage
of totel
Number
Percentage
of totU
Total retail automotive ••••••••••••••••
32,571
100
&19,902,034
New passenger oars . .........•....... ,
llew commercial cars., ...... ,., .. ,,, .•
Used passenger oars ••••••••••••••••••
Used cODDT.ercial oars •.•••••• , .. , ...••
1,774
959
27,912
1,926
5
3
86
6
1,403,914
l, 176,946
15,999,912
1,321,262
Total wholesale automotive, . , .... , .. , , ,
50,636
100
~43. 787,981
New cars (passenger and coomercial) ••
38,142
12,494
75
25
33,624,299
10,163,682
Used cars (passenger and oo~rcial).
y
acquired
y
100
7
6
80
7
a/
100
Data are based on reports from sales finance compNlies 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.
Table 6,--Volume of Diversified Sales Financing During February 1946
Class of paper
Retail - other consumers' goods:
Furniture, radios, pianos, and other musical instruments,.
Refrigerators and other household appliances ••••••••••••••
Residential building repairs and modernization ••••••••••••
of
Dollar vol\l!ll9
paper acquired
i
Miscellaneous retail, •...... , ...•.••.. ,, •..•.. , .•.. , .....•
737,543
645,336
5,973,682
3,229,382
Total retail - other consumers'' goods ••••••••••••••••••••••• ,.
Total wholesale- other than automotive •••••••••••••••••••••••
Industrial, commercial, and farm equipment ••••••••••••••••••••
H0,585,943
1,360,854
770,849
Total diversifiad financing •••••••••••••••••••
$12,717,646
Percentage
of total
6
5
47
25
y
83
11
6
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 4 due to the
exclusion of some data for which breakdowns were not available,
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@FedFRASER