Full text of G.20 Sales Finance Companies : May 29, 1945

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BOARD 0 F GOVERNORS
OF THE
FEDER~L.RESERVE SYSTEM
SALFS J'INANOK OOIIPAHIFB
APRIL 1M6

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lfay 29, 1946
R&S ate - S

!he number of used pasaeng,r cars financed b,y sales finance companies decreased 6 per cent
in April and the dollar volume ot paper purchased showed about the same percentage decline. .New
passenger car financing was reduced. 12 per cent in number during the month but only 6 per cent in
dollar amount of paper acquired • .Although th~ number of new c0111111eroial whiolea financed in April
was 10 per cent larger than in the preceding month, the dollar volullie of ~r-rem&i118d about
th.e same. Used c01111118rcial wl'..io1~a. financed during the month were dOWD 9 per cen / n numl5i'ir. and 11 per cent in value of paper acquired.
.
Retail automoti w outstanding• held by .sales finance companies at the end .of April were in
about the sau volume as a month earlier. The index for these outstand:l.ng b&lances, as shOWD on the
chart below, was 14 for the third consecutive month.
Retail Automotive Financing by Sales Finance Companies
Outstanding Balances at End of Month, December 31, 1939 • 100
INDEX

·INDEX

200

200

150

150'

100

100

50

50

0

0
1941

1. .

1942

1945

1945

1944

Wholesale autom.otive outetandings held by salee finance companies declill8d about 1 per
cent during' April. Acquirements of paper arising fran 'lllbolesale sales of :new passenger and commercial
cars were approximately 9 per cent smaller in April than in the preceding month, 'lllbile the dollar
volume of Wholesale t~ansactions in used vehicles declined nearly 13 per cent.

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The April volllm.e of retail diversified financing was about 13 per cent larger than in the
preceding month and balances outstanding rose 2 per cent. Paper arising from retail sales of
furniture, radios aDd musical instruments was somewhat below the Yaroh 'VOlume, but the volllm.e based
on sales of refrigerators and household appliances increased 8 per cent in April. The amount of
repair and modernization paper purohasedduringApril was 12 per cent larger than a month earlier.
Wholesale automoti-ve paper acquired during April amounted to 41 per cent of the balanoas
outstanding at the end of the month. Retail automotive paper purchased was 16 per cent and other
retail cons-.r paper 12 per cent of the respectiw balances outstanding at the end of'. April.

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Rote .--Collection of statisticsfrom sales finance companies was transferred to t& Beard
of Governora of the Federal Reserw System; effective with the February 1946 report.
These data
were formerly compiled by the Bureau of' the Census, United States Department of Commerce. The ·
purpose of this transfer was to centralize in a single. age»oy the collection of statistics in the
instalment sales financing and consumer loan fields, thus facilitating more orderly coverage and
avoiding unneoessar,y overlapping of reporting groups.
April data, baaed on returns frCD 183 sales finance companies, are compiled in the eame
man:ner as those shown in earlier report•~ Aggregates represent only the total.- for the reporting
c.ompanies and, since the reporting sample i 11 not identical from month to mon~, they are not
comparable with totals of preceding months •




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SALIS FIKANCB

COJIPA~IIS

Table 1.--Automotive and Diveraitied F~na~clng.b~
Indexea ot Cutatanding Balanceaa December

End ot month
and year

Total
all
Retail '
autdi!Otive
aalea.
financing

Wholeaale
autanotive

·;

S~lea

:n,

Finance cam;eniea
1939 • 100 !f

Wholeaale
other
than
autOIIlCiti w

Retail '
other
ccnsumera•
goods

Induatrial,
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

194-2 •• •·•••••••••••••••

53

S7

112

.,o

76

61

1943 •••.•••.••.•••••••

20

13

40

8

30

2'7
26

•

-+-

'

1944 ••••••••••••••••••

18

15

24

·11

26

1944 -April •••••••••

18
19
19
19
19
19
19
18
18

13
14
15
16
16
16
16
16
15

37
36
34
29
26
25
24
23
24

11

n

11

25
24
24
24
24
25
25
26
26

18
18
18

16
14
14
14

25
26
26
25

14
15
18
17

26
26
26
27

27
26
30
32..

Kay •••••••••••
June ••.••• • , •••

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

......

1945 -

Janua~ •••••••

.........
•.....•••

February ••••••
»arch
April

1~

~

11
11

10
10
12
10

10

31

32
32
31
2?

27
25
23

1

Indexee as or December 31 tor the years or 1939, 1940, and 1941 are based on figures reported by
sales finance companies on a supplementary report tonn which &()companied the regular ,monthly report form for January 1942 • Succeeding indexes are derived by calculating the percentage
changes of the outstanding balances reported by sales finance companies for e-ach month from
those reported by the same companies for the preceding month, ·and by iinking these percentage•
to tte ·indexes· for the preceding month.

Table 2.--Relathe Importance of Loans Made by Sales Finance Companies
During April 1945 and Outstanding Balances at End ar Month

Class <lf paper

Paper acquired
during month
Percentage
.Amount
ot total

Total, ell classes or paper~········

179.527.247

100

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

3718451907
7,521,573
30,324,334

48

Total sales financing ~··••••••••••

U,681,340

52

10
38

Outstanding balances,
e.nd oi' month
Percentage
of total

·Amount
$289.822,25~

86.205.693
44,365,446 .
41,840,148
203,616,660

100
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•

30
16
16
70

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




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

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IDM

k.
1

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Finance Companies

1944

i" J

...

~

.

!

•

.

"! 8

...•

-~

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0

!

1946

•

,0

.

...

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RETAIL AUTOMOTIVE
Total number of care. f1118.11oed • •••••••••••••••••••••
Total volume of paper acquired•••••••••••••••••••••
New passenger cars • ••••••••••• •Nul:lber • • ·...........

Paper acquired ••••
New OOJIIIII8roial oara •••••••••••• Number ••••••••••••

Paper acquired,.:.

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~~Sales

!t

39 39 39 37 so S2
38 49 51 61 48 40 ,42

S1

8 9 9
8 12 13

8
8

6
8

4
6

4
6

29 26 24 24 32 30
37 33 31 31 4.1 38
4
5

3
5

3

•

2
3

3
4

2

•

10 14
9 15 18 30 27 22 30 22 18 26 28
11 15 13 16 20 24 22 19 25 2l 17 24 24

Used passenger oara •••••••••••• Number ••••••••••••
Pape.r acquired ••••

35
46
47 80 62

4~

Used oOJIIIII8 rei al oars •••••••••• • llua.ber • ••••.• ; ••••
Paper acquired ••••

9 12
17 24

12
26

11 12
24 23

16 16 14 22
31 M 28 46

17 16 19 18
36 30 40 35

17 18

16

10 12

12

12

12

14

18

5

4

4

4

5

8

40 51

62

57 56 65

11

"

"

42 34 38 32
59 48 51 46

27 28 27 36 33
37 36 37 48 45

WHOLESALE AUTOIIIOTIVE
(Paper acquired)
/

Total volume of paper acquired•••••••••••••••••••••

16 1'8 16

\

~ew oars (passenger and commercial) ••••••••••••••

6

4

6

4

79

88

14

Total diversified financin&••••••••••••••••••••••••

29

36

37 35, 43 42 45

Total ret.il, other consumers' goods •••••••••••••

35

44

41 45

4

6

5

I

Used oars (passenger and commercial) •••••••••••••

73 80 10

DI~RSIFIED

FINAJCI!G
(Paper acquired)

"
58

45 44

38

49 51

56

66

59

Furniture, radios, musical instruments •••••••••

20 23 21 21 22

23

29 23 24 27

Refrigerators and other household .appliances •••

16

13 17 14 14

Residential building repairs and modernization.

11 111 129 118 142 131 ~36 133 114 99

94 114 p.29

M!eoellaneoua retail •••••••••••••••••••••••••••

65

66

58

61

99 116 ~13 139 207 172

54 ~·3 p.79

Total wholesale; except automotive •••••••••••••••

3

3

4

3

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

89

74

68

63

•·

15

17

17

:1.8

4

4

6

52 48 '68

36

3

59 53 48 56 63
19 26

25

17 16 22

24

5 13
39

54

1

10 I 8

56 ~06 p.22

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Indexes are derived by calculating the percentage changes in the nUD\ber of oars financed or the
volume of paper acquired by sales finance companies during each month from the number of oars
financed or the volume of paper acquired by the same ocmpanies durin{; 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 "Total retail, other conaumerf' goode" are baaed on
all figures !!eported for these items regardless of whether or not breakdowns could be supplied.




SAtas FIMliCB CCIIPAJIBS

Table 4.--Automotl~ and Di~rsif~d Financing by Sales Finance Companies
Paper Acquired During. April 1946 and Balances Outstanding at. End of Jlonth
Vol1111111 of paper ailquired
duJ'ing April 1946
By oCIIlpanies
reporting
outstendi':J'
balances a

Outstanding
balances
April SO,;
1946

Ratio paper
acquired to
outstandi,;,
bsb.nces b

Class of paper

By all
oalilpanies
reporting

to-tal H~1: ·~t~ti ~.•.....•..••••.•••.•..
Total wholesale.f.\ltomo:tivw ••••••••••••••••
Total wholeale ..: other than automotive •••
To1;al retail - o~r _consumers• goode.' ••• :
Industrial, oOIIIIIIIIroial, and fal'l:l equipment

119,6&6,486
16,91!1?,112
!62,113
6,646,631
639,202

118,989,.622
16,8?9,186
320,?43
6,403,441
691,6'74

$116,928.938
41,183,34?
1,004.,?64
6,61S,S2S

16
41
32
12
11

.Total sales financing ...........

t44,19(),444

t4S,l84,666

$216 1 611, 'TSO

20

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6~~8?9,368

Data are based on figures frCIIl sales finance ·companies able to report both their paper acquired and
their outstanding balances. · ·
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Ratios. obtaine_d by dividing paJ:lBr acquired ( oolUWl 2) by outstanding balances (column 3).
Table 6.---umber of· oars Financed and Vo1ume of Paper Acquired
by Sales Finance Campanies During April 1946

llumber of oars

Paper

aoquired

Class of paper
!lumber

Percentage
of total

tl6 2 9S0 2 '736!/

100

31,314

lew .p.aaenger oara • ••••••••••• ~:. ~ ••••
llew CCBIIID8roial'· oars ••••••••••••••••••
Used ccmaneroial oars •••• ,.: •• ••••••••••

136
6'71
29,!31
1,1'76

94
4

160,691
?86,696
16,1'76,269
808,0'79

Total wholesale automotive •••••••••••••

18,639

100

$14 1410 1 016!/

100

New oars (passenger and commercial) ••
Used oars· (passenger and oQDmeroial).

6,211
12,428

33
6'7

4,'766,013
9,666,003

S3
6'7

paaae~r

oars ••••••••••••• , ••••

.

100

Dollar
"Volume

tOtal ret:ai 1 automoti '98 • •••••• ·• ••••••••

Used

1

Percentage
of total

¥

.1

1
6
89
6

!( Data

are based on reports from sales finance companies providing a brea~down of their retail and
./ wholesale a!Jtomothe financing. These smounta are leas than those reportad in table 4 due to the
exclusion of aome data for which breakdowns were not available. ,
Leas than one halt c£ one per oent.

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Table 6.--,Volume Of Pheraified Sal.. Financing During April

Clau of paper
Retail - other consumers• goodaa
Furniture, radioa, pianos, and other muaioal inatru.ents ••
Refri·geratora and other. household appliance a ••••••••••••••
Resident~al building repairs and modernization,; ••••••••••

of

Dollar volU!118
paper acquired

•

Miaoellaneoua retail ••••••••••••••••••••••••••••••••••••••

'784,066
216,'739
3,866,!'76
1,'725,862

total retail- other oonaumera• good••••••••••••••••••••••••••
total wholesale- other t!aD automot1••••••••••••••••••••••••
Induatria•l, c01111118roisl, alid .t'a~ equipD~tnt ................... .

$6,682,023
!62,113
639,202

Total

diveraitl~

ttnanoing •••••••••.••.••. ;•.•

1946

i'7,5'73,~38

Percentage
of total

10

s

61
23

!I

8'7 I
5
8
100

!{ Data are based on reports frqa aalea finance companies providing a breakdown of their retail
·financing of other consumers• goods. Thia smount .is leaa than that reported in table 4 due to the
exclusion of s~ date for 1rhioh breakdowns were not available.



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