Full text of G.20 Sales Finance Companies : May 16, 1947

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
May 16 1 1947

G.20
SALIS ::nNANCE COIIPAHIES

MARCH 1947
Retail financing.--Bales finance companies reported sharp gains in the volume of retail
instalment financing in March. Retail automotive paper acquired advanced 24 per cent and diversified
financing rose 27 per cent over respective February levels. Outstanding balances on both classes of
paper increased further during the month.
The gain in total retail automobile financing shown in the table below reflected substantial
increases in all types of cars financed. The number o! used vehicles financed was approximately
twice that of new vehicles, but the dollar volume of paper acquired was about equal for both types
of vehicle.
The marked rise in diversified financing resulted from considerable gains in all classes
of paper, with the largest percentage increase reported in paper based on sales of refrigerators and
other household appliances.
Retail Financing by Sales Finance Companies
Percent&~

Class o! retail instalment paper
Automotive:

Total retail

Passenger carsa
Commercial cars:

Other consumers' goods:

Number
of cars

e charu!e._ Februar_y 1247 to }!arch 191.li
Volume of paper
Outstanding balances,
acQuired duriruz month
end o£ month

~

~

New
Used

+21
+2S

+22
+23

New
Used

+29
+19

+31
+15

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

.ill

!...1.

Total retail

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

+26
+28
+26
+27

.!!Q

t

-

.•

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

Wholesale !inancing.-The March volume of wholesale automotive financing was about 23 per
cent larger than a month earlier, reflecting sizable gains in the financing of both new and used
vehicles. Other wholesale financing increased about one-fL(th over the February volume. Outstanding
balances on both classes of credit continued upward.
Ratio of ~per acguired to balances outstanding.-Tbe volume of paper acquired in March
was equal to about ~ per cent of the amount outstanding at the end o! the month, representing an
increase of 6 percentage points over the February ratio. All classes of paper showed higher ratios
in March compared with the previous month.
Note.-March data, based on returns from 154 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.




Pag~

2
SALES FI!WlCE -COIIPANiiS

:

Table 1.--Automotive and Diversiried Financing by Sales Finance Compani~e
Indexee of Outstanding Balanc~11 December :n, 1939 • 100 !f'

I

-

End of month
and year

Total
all
sales
financing

Retail
autCIIIotive

Wholeeale
autCIIIotive

Wholeeale
other
than
autanoti ve

Retail
other
conewners•
goods

Indue trial,
c01111118rcial,
and farm
equipment

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

1946 ••••••••••••••••••

59

42

90

224

105

59

1946 - March ••••••••••

26
29
31
33
37
41

20
22
24
26
28
30
33
36
38
42

36
35

56

46
51
57
62
69

32

68

82

46
49

AprU •••••.••••

~-···········

Jtme •••••••••••
July' •••••••••••

August •••••••••
September ••••••
October ••••••••

44
49

53
59

November •••••••

December •••••••

62
68
73

1947- January ••••••••
February •••••••

March ••••••••••

71

37
40
48

55
51

66
78

90
9S

45
48

105
lll

53

35
36
38
38

81
91
106
125
146
17'1
224

97
105

57
59

252
287
.325

110
116
124

60
61
68

75

90

44

..

Indel:tl ae of December 31 for the years of 1939, 1940, and 1941 are baaed on figures reported by
aalea finance companiee on a eupplementary report form which accompanied the regular monthly report form for January 1942. Succeeding indexes are derived by calculating the percentage
chan~o of the outetanding balance• reported by eal.ea finance companies for each month from
those reported by the same companiee for the preceding month, and by linking these percentages
to the indexes for the precediJ:Ig month.

Table 2 ~--Relative Importance of Loans llade by Sales Finance CCIIIpanies
During March 1947
and Outstanding Balances at End of llonth
OUtstanding balances,
end of month

Paper acquired
during month
Class of paper

Total, all classes of paper

Y•• .... ••

Total loan• ••.•..••••.•••. • •••..• .- ••
Small (pereonal} loans ••••••••••••

Buaineaa loans •••••••••••••••.••••
Total 1ales financing

y

y ............

Percentage
or total

Amount·

Percentage
of total

$42.3.324.146

100

$1.020.184 • .315

100

12
4
8

166 1 264 1 769
8o,929,72S
8S,3.3S,044

16
8
8

88

8}3,919,546

84

51 2667 2730
15,813,876 .
.3S,8S3,8S4
.371,656,416

Amount

Included in this cl.auitication are only those firms which, in addition to their salee financing
operetione, reported loan acti vitiea.




Page ll
SALIS FIIWICI C<IIPAiliBS

Table li.--.Autcaotiw &Dd DiwraU'ied Fin&Doinr; b)' Saln Fin&Doe ca.peniee
Paper Acquired During Jlarch 1947
&Dd Balance• Outstanding at Bnd ot Jlonth

.

I

Vol1111111 of paper acquired
during March 1947
Cla.. of paper

By all
oomp&Diea
reporting

Total retail automoti~•••••••••••••••••••
Total wholesale automotive ••••••••••••••••
Total wholeeale - other than automoti~ •••

Total retail - other consumers• goode •••••
Industrial. commercial. and fare equipment
Total

!(

Ef

sa~es

financing •••••••••••

Outetandinr;
balances
March 31,

By ocmp&Diea

reporting

1947 !,/

outetandi~

Ratio paper
acquired to
outet&Ddi;,
balance• b

bal&Dcee a

$ 98,434,843
240,431,379
8,638,528
32,316,666
2,297,709

$ 97,241,510

239,827,478
8,630,358
31,213,009
2,045,180

$440,332,5.57
181,5.59,648
23,849,723
224,796,3ll
102981 2512

22
132
36

$382,ll9,125

$378,957,535

$881,.521,951

43

14
19

Data are based on fir;ures from sales finance comp&Dies able to report both their paper acquired &Dd
their outstanding balanoee.
Ratios obtained by dividing paper acquired (column 2) by outstanding balances (column 3).
Table

of Care Fin&Dced and Volume of Paper Acquired
by Sales Finance Companies During March 1947

4.--~umber

Number of care
Clan of paper

Paper
Dollar

acquired

Number

Percentage
of total

Total retail automotiY8,,,,,,,,,,,,,,,,

lQ2.Q12

100

S BS,C22,322

New paeaenge_r oar a, , •••••••.•••••••••
New c011111l8rcial oars.,., ••••••• , •••••.•
Used paaae~r oara ••••••••••••••••••

30,865
7,624

28
7
60

5

32,417,945
10,310,875
38,796,722
3,571,857

38
12
46
4

Percentage
of totel

vol~

Y

JOQ

Used commercial oars •••••••••••••••••

65,53u
5,056

automoti~•••••••••••••

192 2 857

100

~219 1 676 1 910

100

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

164,205
28,652

J.5

85

193,437,234
26,239,676

88
12

Total wholeeale

!( Data are baaed on reports from sales finance companies providing 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 1947

Claee of paper
Retail - other coneumere• goode&
Furniture, radioe, pianos, and other auaical inet~nte ••
Refrigerators and other household appl1ano••••••••••••••••
Residential building repaire and moderni&ation ••••••••••••
llliaoellaneoue retail, ••••••• , •••••••• ,., ••••••• , ••••.•••••

or

Dollar volume
paper acquired

$ 1,8'17,642

2,983,572
16,171,951
10.319,0S9

Total retail - other oonawnera• goode ••••• ,., ••••••• ,,,,, •• ,, •
Tot&l wholesale - othe-r than autoaotiw •••••••••••••••.•••• , ••

!f

5
7

38
24

74
21
5

Industrial, oommercial, and ram equipaent.., ...... , •••• ,· ..... ,
Total diversified fiD&Doins • •••••• , •••••••.• •• ,

Percentage
or total

$42,288,461

100

Data are baaed on reporte trcm sales tinanoe companiee providing a breakdown or their retail
finanoing or other consumere• goods. Thie uount ie len than that .reported in table ll due to the
 exclueion of sCBe data for whioh breakdowns wre not available,