Full text of G.20 Sales Finance Companies : May 9, 1952
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BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Ge2 ° May 9$ 1952. SALES FINANCE COMPANIES MARCH 1952 Retail financing—Purchases of retail automotive paper by sales finance companies increased It per cent from February to March, reflecting increases in each of the automotive segments except new passenger cars. Purchases of instalment paper arising from the sale of new automobiles continued to decline despite a seasonal increase in sales. Although total acquisitions of retail automotive paper increased in March, outstanding balances continued to decline slightly during the month. This decline brought month-end balances to about the same level as a year ago. Retail financing of other consumer goods by sales finance companies rose 9 per cent in March. Although the furniture and television segment declined slightly, the three other segments showed increases of 8 to 21 per cent. In spite of the overall expansion in purchases of other consumer goods paper, outstanding balances continued to decline, and on March 31 were 1 per cent below those of the preceding month-end. Retail Financing by Sales Finance Companies Class of retail paper Automotive: Total retail Passenger cars: Percentage change, February 1952 to March 19^2 Number Volume of paper Outstanding balances of cars acquired during month end of month ±1 +1 - 5 - 3 + 7 + 5 + 9 + 7 New Used +5 Commercial cars: New Used + 6 Other consumer goods: Total Furniture, radios, television sets, musical instruments Refrigerators and other household appliances Residential building repair and modernization Miscellaneous retail LI - 1 - 1 - 1 +21 +11 + 8 Wholesale financing—Purchases of wholesale automotive paper increased moderately in March, a month during which increases usually occur. Outstanding balances of wholesale automotive paper increased about 5 per cent during the month, bringing the index in Table 1 to a level slightly above that of March last year. Purchases of wholesale paper on other consumer goods showed a small increase in March. Outstanding balances of this type of paper increased moderately during the month, but at the month-end were more than 25 per cent below a year ago. NOTE.—March data, based on returns from 111 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 COMPANIES Table 1.—Automotive end Diversified Financing by Sales Finance Companies Indexes of Outstanding Balancesi 19U7-19U9 average = 100 a/ End of month and year 1939 19U0 191*1 19h2 19U3 19hh 19U5 19U6 19U7 19U8 a/ Retail other consumers' goods Industrial, commercial, and farm equipment Total all sales financing Retail automotive Wholesale automotive Wholesale other than automotive 68 92 103 36 Hi 12 15 liO 81 118 155 198 202 76 101 11h 28 10 11 lli 32 67 115 190 2U8 2U8 55 92 96 61 22 13 15 U9 89 138 118 162 197 2li 3li 61 10 2 3 9 55 97 111 81 126 120 U9 6L 73 38 15 13 19 52 112 llli 92 87 75 100 131 lli7 61 27 23 23 59 89 116 107 130 151 197 200 202 205 202 203 203 203 203 202 238 238 222 231 21*5 21*8 253 256 25U 251 21*8 195 209 219 221 203 185 186 196 197 156 Ui7 139 130 120 79 77 76 7k 72 73 7k 7h 7k 75 125 136 138 ll*0 11*3 11*6 11*9 11*9 150 151 196 196 196 2l*3 21*0 238 181 189 199 116 136 151 73 72 71 156 2l a 220 202 181 178 160 163 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 calculating 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 During March 1952 and Outstanding Balances at End of Month Outstanding balances, end of month Paper acquired during month Class of paper Amount Percentage of total Amount Percentage of total $903,179,917 100 $3,639,006,1*60 100 Total loans Small (personal) loans. Business loans 81*.656,1*13 26,761*,273 57,892,11*0 9 3 6 272,851,951 153,386,520 119,1*65,1*31 7 k 3 Total sales financing m/. 818,523,501* 91 3,366,15k,509 93 Total, all classes of paper a/. operations, reported loan activities. Page 3 SALES FINANCE COMPANIES Table 3.—Automotive and Diversified Financing by Sales Finance Companies Paper Acquired During March 1 9 # and Balances Outstanding at End of Month Volume of paper acquired during March 19!?2 Class of paper By all companies reporting Total retail automotive Total wholesale automotive.............. Total wholesale - other than automotive... Total retail - other consumers' goods Industrial, commercial, and farm equipment Total sales financing a/ b/ By companies reporting outstanding balances a/ Outstanding balance March 31, 1952 a/ Ratio paper acquired to outstanding balances ty •309,101,1*59 1*73,1*12,338 16,770,113 21*, 263,1*56 10,599,01*0 •307,1*1*6,1*98 1*71,750,575 16,735,616 23,99k,303 10,597,131* •2,1*61*,782,127 573,531,881 1*6,11*]*, 352 211*,866,91*3 121,638,1*69 12 82 36 11 9 •831*,11*6,1*00 •830,521*, 126 •3,1*20,963,772 2h Data are based on figures from sales finance companies able to report both their paper acquired and their outstanding balances. Ratios obtained by dividing paper acquired (column 2) by outstanding balances (column 3). Table 4.—Number of Cars Financed and Volume of Paper Acquired by Sales Finance Companies During March 19^2 Number of cars Paper acquired Class of paper Number New passenger cars New commercia 1 cars Used passenger oars Used commercial oars................. Percentage of total 216,288 100 61*,1*69 10,510 155,1*58 13,851 26 h 61* 6 266,91*9 100 IS New cars (passenger and commercial).. Used cars (passenger and commercial). Dollar volume •262,251,308 a/ 100,175,870 17,321*,253 133,860,251* 10,890,931 •1*66,71*7,869 a/ 79 21 1*09,257,272 57,1*90,597 Percentage of total 100 38 7 51 h 100 88 12 */ Data are based 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 195>2 Class of paper Retail - other consumers' goods* Furniture, radios, pianos, and other musical instruments.. Refrigerators and other household appliances. Residential building repairs and modernization Miscellaneous retail Total retail - other consumers' goods Total wholesale - other than automotive Industrial, commercial, and farm equipment Total diversified financing. of Dollar volume paper acquired Percentage of total • 5,258,oo5 7,299,615 2,962,01*9 7,337,791* 10 15 6 15 •22,857,1*63 a/ 16,770,113 10,599,01*0 16 33 21 •50,226,616 100 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 in table 3 due to the exclusion of some data for which breakdowns were not available.