Full text of G.20 Sales Finance Companies : May 14, 1948

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

'·~-·.

e

BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM

,..,

May

Go20

14, 1948

SALES J'DWilE COJIPANIES

-..>

MARCH 1948

......

Retail financing.~ales finance companies reported sharp increases in the volume of
automotive and other retail instalment paper acquired during the month of March. In the automobile sector 1 the substantial rise in volume was accompanied by a material expansion in outstanding balances. Amounts outstanding based on sales of other consumers' goods increased only slightly,
reflecting in part the effects of diminished activity in prior months.

..•

The 42 per cent gain in dollar volume of automobile financing, shown in the table below,
resulted from considerable increases in the time sales of all types of vehicles. Along with a
marked upswing in motor vehicle production in March, financing of new passenger cars rose 31 per
cent, and new commercial vehicles 40 per cent above the February level. The percentage increase
in used vehicle financing was even larger than for new vehicles.
The rise of 29 per cent in the financing of consumers' goods other than automobiles
reflected substantial gains in all classes of paper. Paper based on sales of refrigerators and
other household appliances showed the highest percentage increase.
Retail Financing by Sales Finance Companies

ir

Class of retail instalment paper
Automotive:

Total retail

Passenger cars:

.
I

'

:

Commercial cars:

.,.

.

.

Percentage chan~e. FebruarY 194tl to March 1948
Number
Volume of paper
outstanding balances,
acquired during month
end of month
of cars

.t.hll

.t!!?.

New
Used

+31
+52

+59

New
Used

+50

Other consumers' goods:

+42

Total

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

±...2

+40
+46

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

~

.!...!

+31

+35
+53
+23
+26

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

Wholesale financing.-The volume of financing of sales to dealers of automobiles and
other goods was up substantially in March. outstanding balances on both types of dealer credit
increased further during the month.

•

Ratio of paper acquired to balances outstanding.--The ratio of paper purchased during
the month to balances outstanding at the end of the month increased 9 percentage points to 39 for
March.

Note.-March data, based on returns from 135 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, they
are not comparable with totals of preceding months.




~

Page 2
SALES FINANCE COIIPANIES

Table 1.--Automotive and Diversified Financing by Sales Finance Companies
Indexes of Outstanding Balances: December 31, 1939 • 100 ~
Wholesale
other
thnn
autanotive

Retail
other
consumers•
goods

Industrial,
commercial,
and farm
equipment

100

100

100

100

1.32

169

140

129

1.31

1.52

149

175,

250

148

147

1942 ••••••.•••••••••••

53

37

112

40

76

61

1943 ••••••••••••••••••

20

1.3

40

8

30

27

1944 ••••••••••••••••••

18

15

24

11

26

26

1945 ••••••••••••••••••

22

18

27

38

39

23

1946 .••.••••••••••••••

59

42

90

224

105

59

1947 ....••••••••••••••

119

88

163

394

226

89

1947- March ••••••••••
April ••••••••••
May ••••••••••••

73
78
82
87
91
94
100
105
lll
119

53

111
110
1o6
lll
109
103
122
124
1.38
163

325
341
351
346
336
333
321
310

124
136
145
157
168
180
192
2o6
218
226

68
67
70
71
74
87

End of month
and year

Total
all
sales
financing

1939 ••••••••••••••••••

100

100

1940 ••••••..•••••.•..•

]J6

1941 •••••••••.••••••••

Jlllle • ••••••••••
July ••••• ••••••

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

Retail
automotive

Wholesale
autanotive

58
62
66
69
72

15
19
83
88

359
394

86

92
89
89

1948- January ••••••••
Feb~ •••••••
March ••••••••••

123
92
167
426
229
92
127
171
230
96
445
94
105
134
175
232
458
98
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 calc\1lating 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 Loans Made by Sales Finance Companies
and Outstanding Balances at End of Month
During March 1948
Outstanding balances,
end of month

Peper acquired
during month
Class of paper
Amount

.._

Percentage
of total

Amount

Percentage
of total
100

Total, all classes of paper ~··••••••

$563,602,682

100

U.41)L..61)L. 810

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

Y,~,l)98.811,6

8
2
6

13S,8'ZQ,2'Z1

12,1.32,619
33,466,227

79,o65,2l2

2
6

Total sales financing ~····••••••••

518,003,836

92

1,318,783,859

92

56,805,759

a

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



...

Page l5
SALES FIJIAIICB COIIPAIIIBS

•

.,.
·,.

Table 3.--.Autcaothe and DiwrBified Financing by Salea FiiiADoe Companiea
Paper Acquired During lfarch 1948
and Balancee Outetanding at End of llonth
Volume of paper acquired
during March 1948
Clan of paper

By c0111paniee
reporting

By all
c0111paniee
reporting

outetandi~J

Ratio paper
acquired to
out standi,;,
balances b

1948 !I

balances a

Total retail automotive •••••••••••••••••••
Total wholesale automotive, •••••••••••••••
Total wholesale - other than automotive •••
Total retail- other consumers' goode •••••
Industrial, commercial, and fare equipment

$151,318,004
325,6o6,011
15,231,120
33,143,325
9,940,783

$148,701,912
323,242,794
15,225,080
33,071,381
9,904,330

$ 678,926,083

231,166,847
34,832,120
346,216,624
74,279,773

22
140
44
10
13

Total sales financing •••••••••••

$535,239,243

$530,145,497

$1,.365,421,447

39

~

Data are based on figures from sales finance companies able to report both their paper ac~uired and
their outstanding balances.
~ Ratios ob~ined by dividing paper acquired (column 2) by outstanding balances (column 3).
Table 4.--llumber of -Cars Financed and Volume of Paper Acquired
by Sales Finance Companies During March 1948
NUIIIber of cars
Class of paper

Paper

acquired

Number

Peroent,age
of total

Dollar
volume

Percentage
of total

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

145z084

100

$146 1 497 1 582 !!1

100

New passenger cars •••••••••••••••••• ,
New commercial cars ..................
Used passenger oars ••••••••••••••••••
Used comu~rcial oars •••••••••••••••••

47,6.56
19,693
11,462
6,273

33
55
8
4

61,183,472
63,304,114
16,732,180
5,217,816

42
43

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

231z927

100

~~21 1 287 1 67!! !!1

liew cars (passenger and commercial) ..
Used cars (passenger and commercial).

207,094
24,833

11

~

89

295,140,079
26,147,595

ll

4
100
92
8

Data are based on reports from sales finance compNlies prov1ding 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 March 1948

',t

-~

Outstanding
balances
lfarch 311

Class of paper

of

Dollar volU!Ile
paper acquired

Retail -other consumers• goode:
Furniture, radios, pianos, and other musical instruments ••
Refrigerators and other household appliancee ••••••••••••••
Residential building repairs and modernization ••••••••••••

3

11

24
19

Miscellaneous retail ••••••••••••••••••••••••••••••••••••••

Total retail- other consumers' goods•••••••••••••••••••••••••

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

Percentage
of total

$32,732,357 !!1
15,231,120
91 940 1 783

57
26
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 i~ table 3 due to tha
exclusion of some data for which breakdowns wera not available,



'"(-'
~

..

~.

Please note the following errors on the March 1948 issue of the
release for Sales Finance Companies, G.20, dated May 14, 1948.
1. On page 2, Table 2, the percentages under Outstanding balances were erroneously shown as identical to the percentages under
paper acquired.
2. · On page 3, .Table 4, figures for new commercial vehicles
l-rere interchanged ~th those for used pa.s~enger cars.
Tables 2 and 4 as corrected are reproduced belmv •

••

Table 2.-Relative Importance of Loans Nade by Sales Finance Companies
During March 1948 and Outstanding Balances at End of Month

·_.,
~

I

I
'

FINANC:E COMPANIES - HARCH 1248
CORRECTION

..

.....

,.

-

Paper acqui1•ed
durin~:r month
Percen:tage
Amount
of total

Class of paper

r:

-

Total, all classes of paper ••
Total loans ••••••••••••••••
Small (personal) loans •••
Business loans •••••••••••
Total sales financin~··••••••

~§J 1 p02a~82

--

i

-

'

-

518,~3,8,36

8'30

100

...,......_..,......_...

~

-~870.971

8
2
6
92

12,132,619
33,466,227

--

~;+_,~5/.. 651..

100

_..ftiaj~6

Outstanding balances,
end_of_month
IPercentage
Amount
of total
9
4

5 ,805,759
79,065,212
1,318,783,859

5

91

Table 4·-·Number of Cars Financed and Volume of Paper Acquired
by Sales Finance Companies During March 1948
·'

~~or'of

Class of paper

-

I

I

~

cars
Percentage
., Jiumber of t_Qtal

Total retail automotive ••••••••••••••••• }#5.084
New passenger cars ••••••••••••••• , •••• 47,656
New commercial cars •••••.••••• , , • , ••••• 11,462
Used passeng:r cars ••••••••••••••••••• 1 79,693
Used cormnercJ.al cars •••••• , •••••••••• , 6,273
Total wholesale automotive, •••• , •••••••• 2,311927
New cars (passenger and commercial) ••• 207 1 094
Used cars (passerger and commercial) •• 24 1 $)3
..

--

4

!

I




;

'

I

I

!00
33

8

55

4

-

lQO

89
ll

-

Paoer ac n.1.ired
Percentage
Dollar
volume
o!:.. :i!S?t~l.
tll-46. 427, ssa
61,183,472
16,732,180
63,.304,114
5,277,816
~~:]21 t 287.67/..
295 ., 140 079

if,.....,..,............

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Hay 20., 1948

j

26~147,.595

-

100
42
11
43
4
100
92

s

..,...._