Full text of G.20 Sales Finance Companies : March 28, 1946
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. ~ I I 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 ~ 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!( ••..••.•..•• "j 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 !7 ITEM . . . 1945 . . 1946 ;. . ~. . ~ '-:> ~ .....:>. ::s '-:> ..; Q) (I) 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 .j.) p. .j.) 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, j 77 23 e