Full text of G.20 Sales Finance Companies : March 5, 1946

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l.

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
lfaroh 6, 1K6 "
U.S ato - 12

Retail tinanoir!··-The 'VOl,.. of retail tiD&DoiDg by aalea tiD&Doe ocapalli.ea duriq
Januaey waa lirger tliiii li the preoed.iar; III.Oilth• aa a result or a substantial increase in the tinanoiug ot oonaumera' r;oocla other tban autcaoti w. and of a pin iD retail aut0111.othe paper acquired.
OUtataDcliug balances on both autcaotive and other retail iutalaent paper ocmtiDued to ahow a
grad~ riae.
The inoreaae in total retail auto.otive tinanoiar;, ahOWD in the table below. retleotecl inoreaaea in both new and uaecl paaaeuger oar pap~tr. New paaaenger oar fiD&Doiar; ahowcl sharp gains in
n\Uilber and dollar 'YOlU1118 tor the third acmaeoutive month.

The 9 per cent rise in retail finanoiug of aonaUIII8ra 1 goods other than automotive resulted
frCIIIl inoreaaea in all olaaaes ot paper except furniture paper. The larr;eat percentar;e gain waa in
paper ariaiug tr0111. Jlliacella:aeous retail aalea. Paper arising from. the aale of retrir;eratora and other
household appliance a waa up sharply tor the fifth aonaeauti w month.

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•

Retail Financing by Sales Finance Companies

•

Class ot retail inatalmeut p&pilr
of
Automotive a

Total retail

aara
.• 5
+79
+11

Paaaenr;er oara 1
ec.meraial aarsa

-

-27
- 9

Jlew

Uaed
other oonaumera' gooclaa

+4

+79
+10

- 8

...
...
...

+ 9.

+S

- 2

...
...

-25

Total retail

Furniture, radios, muaioal instruments
Refrigerators and other household appliances
Residential building repair and modernisation
Jli sae llane oua retail

+S

-

+11

+4
+23

Wholesale finanai~.--llholeaale autom.oti w tiD&Doing duriug Janary waa 8 per cent larr;er
than a month earlier, resultng tram increases in paper ariaing from. the sale to dealers of both ne1r
and used whiolea. Wholesale financing other than autamothe showed aonaiderable expansion in
January.
Ratio of paper ao,uired to balanaea outstanding---Retail automotive paper purchased was
20· per cent and other retai aonaUIII8r paper was iS per cent of respeoti ve 'balances outatandillg at
the end of the month. or the aame ratios aa tor the preceding month, The 'YOlUJDe .ot wholesale
automotive paper acquired in Januaey amounted to 78 per cent or the oor_responcling amount outstanding
at the end of the month. and other wholesale paper acquired was 37 per cent of the end-of-month
balanoea. The ratio tor industrial. aCIIIdroial, and farm equipment paper waa 22 per oent. a aCII8•
what laz:r;er ratio than in other reoent months,

Bote a January data. baaed on returna from 164 sa lee t'inanoe oom.paniea • are OCIIlpiled in
the .._ manner as those shown in earlier. repol,"ts. Aggregates represent. only the totals tor the
reporting aompanies and• since the reporting sample ia not i dllntiaal from month to. mouth. they· are
. not comparable with totals ot preceding months ;,




SALIS FIWCE COIIPAtiiES

Table

1.--Automoti~

and Diversified Financing by Sales Finance Companies
Indexes of Outstanding Balancesa December 31, 1939 • 100

y

End of month
and year

Totalall
sales
financing

Retail
autamotive

1939 •••..•••••••••••••

100

100

1940 ••••••••••••••••••

136

1941 ••••••••••••••••••

Wholesale
other
than
automotive

Wholesale
autanoti~

"

Retail
other
consumers'
goods

Industrial,
commercial,
and farm
equipment

100

100

100

100

132

169

140

129

131

162

149

1'76

260

148

lU

194-2 •• ••••••••••••••••

53

3'7

112

40

'16

61

1943 •••.••••• •·••••••••

20

13

40

8

30

27

c

1944 ••••••••••••••••••

18

115

u

11

26

26

191& ••••••••••••••••••

22

18

2'7

38

39

23

1946- Januar,y ••••••••
.Februaey •••••••
Jla.roh ••••••••••
April.••••••••••
Jla.y.••••••••••••

18
18
18
18
18
18
18
18
18
19
21
22

16
14
14.
14
14
14
16
16
16
16
1'7
18

26
26
26
.26
26
24
20
18
1'7
18
24
2'7

14
16
18
1'7
16
16
16
19
21
28
32
38

26
26
26
27
28
29

2'7
26
30
32
28
27
2'7
26
24
24
24
23

JUDe •••••••••••
July •••• , ••••••

August •••••••••
September •• ••••
Ootober ••••••••
lio.,..ber •••••••
December •••••••

so
31
33
36
37
39

~946-

44
23
18
28
41
26
January ••••••••
Indexes as or December 31 for the years of 1939, 1940, and 1941 are baaed on figures reporteli by
aalea finance campaniea on a aupplementary report form which ~cccmpanied the regular monthly report torm for January 1942. Succeeding indexes are derived by calculating the percentage
changes ot the outstanding balances reported by aalea finance companies tor each month i'l'Olll
those reported by the same companiea for the preceding month, and by liDking tbese percentages
to tr.e indexes tor the preceding month.

Table 2.--Relathe Importance of Loans Made by Sales Finance Companies
During January 1946 and Outstanding Balances at End m: llonth
Outstanding balances,
end oi' month

Paper acquired
during month
Clasa of paper
Amount

Percentage
or total

Amount

Percentage
or total

!f........

1106,928,062

100

136'7,2'76,444

100

Total loans ••......•••..••.•.••••.•.••

11 1 172 1 M6

31

S.ll (personal)' loans ••••••••••••

9.006.'766

8

Business- loans • ................. ·•••

24~166.090

23

93123'7il61
48,186,943
46.060,218

26
11
11

69

264,039.283

74

Total, all ·classes of paper

Tot.al sales tinan cing

!/• ..·.........

'

73.'166,21'7

Included in thi& classification are only those firms which. in add.i tion to their sales finauciJIC
ope-ratioaa. reported loan aoti 'ri. ties.



I.

Page 3
SALIS FINANCE COMPANIES

~~Sales

Table 3.--Automotive and Diversified Financing
January 1942 • 100

ITEM

. . . .

~
~

Finance Companies

~

.c
r...

• i

"'

llo

<rl-

1946

r

§ .;>a
r-1

~

. to.

! .z

1946

...•
0

0

•

II>

0
lZI

. .

0

c!

~

RETAIL AUTOMOTIVE
Total number of Oars financed ••••••••••••••••••••••
Total volume of paper acquired •••••• 4••••••••••••·•

24 J24 32
31 31 41

New pauenger cars ••••.•••••••• Number ••••••••••••
Paper ~cquired ••••

3
4

New commercial cars •••••••••••• Number ••••••••••••
Paper acquired,, ••

2
3'

30 31 34 34
38 39 45 46

33
44

3
4

6

4
6

30 38 40 56
26 30 30 43

74
66

2
4

2
3

36 40 41
60 66 69
3

9

5

11

40 42
67 60
18
19

32

3
4

2
4

22
21

18 25
17 24

28
24

Used passenger cars •••• ••••••• • Number • .•.••••••••
Paper acquired,,,.

26
36

27 36 33 34
37 48 45 46

U"sed oomme rei a 1 oars ••••••••..• ~umber •••••.••••••
P~per acquired.,.,

17 15 19
36 30 40

18
36

18 20
37 41

19
39

19
39

31
56

33 34
62 65

16 15

18

16

16

16

12

14

115

19

4

6

6

6

7

6

6

6

70 68

56

47

62

62

81 82 104 103 101 109
26

24

26

31 28

34

.3 62

37 38
53 54

3

34

92 148 83 61
68 104 66 49

36 37 43 41
50 54 62 61

39 43
68 64
46
88

41
81

WHOLESALE AUTOMOTIVE
(Paper acquired)
Total volume of paper acquired ••••••••••.••••••••••

32

30 32

lfew c~re ( paeeenger end commercial) •• ,,.,, •• -, •• ,.

6

Ueed care (paesenger and commercie.l),.,,,,, ••••••

71

73 80

44

38

49

51

51

58

53 48

55

63

66

75

.5369

F'urniture, radios, JIIUsical instruments,,,,, ••••

27

19

26

25

28

27

26

Refrigerators and other household appliances •••

17

16

22

24

33 33

Reeidential building repairs and modernization.

99

94 114 129 161 172 169 173 158 210 216 197 204

10 22

21

22

56

61

71

M

71

63

84

82

82 93

DIVERSIFIED FINANCING
(Piper acqUired)
Total diversified financing ••••••••••••••••••••••••
Total retail, other consumers' goods •••••••••••••

28

29

29

69 !6

Miscellaneous retail ••••••••••••••••••••••••••• 172 154 143 179 137 171 143 242 312 378 311 288 ~52

Total wholesale, except automotive •••••••••••••••

13

Industrial, commercial, and farm equipment, ••••••

54

7 10

8

9

9

11

11

10 24

55 206 122 53 50 39 47 43

26

26

34

90 5'1 84 1M

Indexos are derived by calculating the percentage changes in the number of care financed or the
volume of paper acquired 'by seles finance canpanies during each month from the number of oars
financed or the volume of paper acquired by the spme canpanies during the preceding montl-: 1 and by
linking these percen\.ages to the indexes for the preceding month. The indexes for "Total retail
automotive," "Total wholesale automotive," and "Total retail, other consumers' goods" are baaed on
all figures reported for these items regardlees of whether or not breakdowne could be supplied.




SALIS FilWICE COJ&PA)JIBS

Table 4,--Automotive and Diversified Financing by Sales Finance Companies
Paper Acquired During January lK8 and Balances Outstanding at End or Month
Volume of paper acquired
during January 1946

Outstanding
balances
Januazoy
1946 a

;,1

Ratio paper
ecquired to
out standi,;;
belances b

Clan of paper

By all
companies
reporting

companies
reporting
outetandiz;;
balances a

Total retail automoti w ••..••••••••••••• , •
Total wholesale automotive ••••••••••••••••
Total wholesale - other than automoti w •• ,
Total retail- other consumers' goods •••••
Industriel, commercial, and fano equipment

t29,793,963
34,920,807
1,109,472
10,692,647
966,387

t29,260,l63
34,762,678
1,109,472
9,967,861
949!663

$146,880,160
44,729,876
2,969,026
75;604,848
4!3941331

20
78
37
13
22

Total sales financing,.'•••• , ••••

t77,483,176

$76,039,727

$274,578,239

28

By

!( Data are based on figures from sales finance companies able to report both their paper acquired and

EJ

their outstanding balances.
Ratio& obt..ined by dividing paper acquired (column 2) by outf:tanding balances (column 3).
Table

5.--~umber

of Cars Financed and Volume of Paper Acquired
January 1946

by Sales Finance Companies During

Number· of care
Clau of paper

Paper

acquired

Dollar
volume

Number

Percentage
of total

Total retail autom.otiw .................

42.479

100

t25,163,0lt

New paaeen~r oara •••••••••••••••••••
New commercial oars ••••••••••••••••••
Used paaae~r care ••••••••••••••••••
Uaed commercial cars •••••••••••••••••

1, 727
1,314
36,899
2,639

4
3
87
6

1,386,974
1,577,142
20,672,697
1,617,201

TQtal wholesale automotive •••••••••••••

39.646

100

130,407,973

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

27,694
12,062

:so

70

20,726,941
9,682,032

Percentage
or total

!(

lQQ
8

6
82
8

..

lQQ
88
32

!( Data are based on reports from sales finanoe compMies 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 January 1946

Class of paper
Retail - other consumers' goods1
Furniture, radios, pianos, and other IIIUaical instruments ..
Refrigerators and other household appliances ••••••••••••••
Residential building repairs and modernization ••••••••••••
Miaoellaneoua retail••••••••••••••••••••••••••••••••••••••
Total retail- other consumers' good••••••••••••••••••••••••••
Total wholesale - other than automot1~ •••••••••••••• : ••••••••
Industrial, ·commercial, and farm equipaent •• , ••••• , ••• ,.,., •••

Total

~!versified

financing •••••••••••••••••••

of

Dollar volume
paper acquired

•

860,631
648,601
6,194,634
21960.342

$10,664,008 ~
1,109,472
966 387
$12,739,867

Percentage
of total

7
6

49
23
84
9
7

100

!( Data are based on reports from sales finance companies providing a breakdown of their retail
financing of other consumers' good8, This amount is less than that reported in table 4 due to the
exclusion of some data for which breakdowns were not available •'
'