Full text of G.20 Sales Finance Companies : November 14, 1952
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% <yv v Oy\ <0 \ [ B R A . ^ ^ G.20 - RESERVE - ^ i BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM ' November lU, 1952 SALES FINANCE COMPANIES SEPTEMBER 1952 R e t a i l f i n a n c i n g - p u r c h a s e s of r e t a i l automotive paper by s a l e s f i n a n c e companies increased 15 per cent i n September, following two months of s u b s t a n t i a l declines# The September gain r e f l e c t e d sharp i n c r e a s e s i n t h e f i n a n c i n g of new v e h i c l e s — 52 per cent f o r passenger cars and 31 per cent f o r commercial vehicles* These i n c r e a s e s , however, were o f f s e t , i n p a r t , by decreases of 6 per cent i n purchases of used passenger car paper and 2 per cent i n a c q u i s i t i o n s of used commercial car p a p e r . The gain i n volume was accompanied by an i n c r e a s e of 1 per cent i n outstanding balances of r e t a i l automotive paper during September# These balances on September 30 were about 10 per cent above t h e year-ago level# The volume of other r e t a i l i n s t a l m e n t paper purchased during September declined 3 per cent from the preceding month# Acquisitions of household appliance paper, t h e most important segment, declined 20 per c e n t . This was more than s u f f i c i e n t t o o f f s e t i n c r e a s e s of 30 per cent i n purchases of f u r n i t u r e and t e l e v i s i o n paper and 2 per cent i n purchases of r e p a i r and modernization paper# Despite t h e o v e r a l l drop i n the volume of paper a c q u i r e d , outstanding balances of other r e t a i l instalment paper i n c r e a s e d h per cent during September, and a t t h e month-end were about 20 per cent above a year ago# R e t a i l Financing by Sales Finance Companies Class of r e t a i l paper Automotive: Percentage change, August 1952 t o September 1952 Volume"of paper Outstanding balances Number of cars acquired during month end of month + 1 Total r e t a i l New Used +60 - 6 +52 Commercial c a r s ; New Used +U6 +31 - - 2 Passenger c a r s ; Other consumer goods: 2 Total F u r n i t u r e , r a d i o s , t e l e v i s i o n s e t s , musical instruments R e f r i g e r a t o r s and other household appliances R e s i d e n t i a l b u i l d i n g r e p a i r and modernization Miscellaneous r e t a i l - 6 - 3 + h +30 -20 + 2 - 1 Wholesale financing—Purchases of wholesale automotive paper i n c r e a s e d 121; per cent during September, more than doubling t h e volume of the preceding month# This was r e f l e c t e d i n an i n c r e a s e of 26 per cent i n outstanding balances from August 31 t o t h e end of September# Other wholesale paper acquired during September declined about 13 per cent during September, and was accompanied by a decrease of approximately 5 per cent i n outstanding balances from the end of August t o September 30# NOTE:--September d a t a , based on r e t u r n s from 108 s a l e s f i n a n c e companies, a r e compiled i n the same manner as those shown i n e a r l i e r r e p o r t s # Aggregates r e p r e s e n t only t h e t o t a l s f o r t h e r e p o r t i n g companies and, since t h e r e p o r t i n g sample i s not i d e n t i c a l from month t o month, they a r e not comparable with t o t a l s of preceding months# Page 2 SALES FINANCE COMPANIES Table 1 .—Automotive and D i v e r s i f i e d Financing by Sales Finance Companies Indexes of Outstanding Balances: 19U7-19U9 average = 100 a j End of month and year Retail automotive 68 92 103 36 1U 12 15 kO 81 118 155 198 202 76 101 Ilk 28 10 11 lh 32 67 115 190 2U8 218 55 92 96 61 22 13 15 U9 89 138 118 162 197 2k 3k 61 10 2 3 9 55 97 111 81 126 120 U9 6k 73 38 15 13 19 52 112 llli 92 87 75 100 131 lli7 61 27 23 23 59 89 116 107 130 151 203 203 203 202 256 251 251 2U8 178 186 196 197 Hi7 139 130 120 7k 7k 7k 75 1U9 ll*9 150 151 196 196 196 200 206 213 212 210 217 2l±3 2U0 238 2U0 253 269 277 278 281 181 189 199 208 197 181 136 113 1U2 116 136 151 152 1a 130 125 119 113 73 72 71 71 7k 78 8U 86 89 156 160 163 168 170 175 183 185 190 1939 1910 19U1 1912 1913 19Ui 191*5 19U7 19U8 1951 a/ Wholesale other than automotive Total all sales financing Wholesale automotive Retail other consumers' goods Industrial, commercial, and farm equipment Indexes as of December 31 f o r the years of 1939, 1940, and 1941 are based on f i g u r e s reported by s a l e s f i n a n c e companies on a supplementary r e p o r t form which accompanied the r e g u l a r monthly r e port form f o r January 1942. Succeeding indexes a r e derived by c a l c u l a t i n g the percentage changes of the outstanding balances reported by s a l e s finance companies f o r each month from those reported by t h e same companies f o r the preceding month, and by l i n k i n g these percentages t o the indexes f o r the preceding month. Table 2 . — R e l a t i v e Importance of Loans Made by Sales Finance Companies During September 1952 and Outstanding Balances a t End of Month Class of paper Outstanding balances, end of month Paper acquired during month Percentage of t o t a l Amount Percentage of t o t a l Amount $982,295,535 100 *3,91*2,759,131* 100 95.981.031 29,006,981* 66,97U,0U7 10 3 7 282,771,005 156,023,166 126,71*7,839 7 k 3 886,31b,50k 90 3,659,988,129 93 Included in t h i s c l a s s i f i c a t i o n are only those firms which, in a d d i t i o n t o t h e i r s a l e s f i n a n c i n g o p e r a t i o n s , r e p o r t e d loan a c t i v i t i e s . Page 3 SALES FINANCE COMPANIES Table 3.--Automotive and D i v e r s i f i e d Financing by Sales Finance Companies Paper Acquired During September 1952 and Balances Outstanding at End of Month Volume of paper acquired during September 1952 Class of paper Total wholesale - other than automotive.., Total r e t a i l - other consumers' g o o d s . . . . . I n d u s t r i a l , commercial, and farm equipment a/ b/ Outstanding balances September 30, 1952 a / Ratio paper acquired t o outstanding balances ly By a l l companies reporting By companies reporting outstanding balances $365,33k,035 1*72,39k,788 11,8 Wt, 0k9 36,908,033 13,1*69,051* $362,81(0,951* 1*71,115,770 11,1*1*1,1*59 31*,727,1*1*7 13,276,817 $2,870,952,088 1*01,736,369 31*, 368,057 269,811,1(85 11*2, 5ll*,r>00 13 117 33 13 9 $899,91*9,959 $893, l*02,lil*7 $3,719,381,999 2k Data are based on f i g u r e s from s a l e s f i n a n c e companies able t o r e p o r t both t h e i r paper acquired and t h e i r outstanding balances• R a t i o s obtained by d i v i d i n g 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 September 1952 Number of c a r s Class of paper Number Paper Percentage of t o t a l Dollar volume Percentage of t o t a l $305,283,61*9 a / 100 Total r e t a i l automotive 21*2,829 100 New commercial c a r s . Used passenger c a r s Used commercial oars 77,193 12,028 139,111 11*, 1*97 32 5 57 6 .. 258,1*79 100 New cars (passenger and commercial).. Used c a r s (passenger and commercial). 217,393 1*1,086 Qh 16 Total wholesale automotive acquired 11(1,070,173 17,901,379 131*, 773,01*8 11,539,01*9 $1*66,092,161 a / k22,klk,5?l 1(3,677,59^ U6 6 bh h 100 91 9 a^/ Data are based on r e p o r t s from s a l e s f i n a n c e companies providing a breakdown of t h e i r r e t a i l and wholesale automotive f i n a n c i n g . These amounts are l e s s than those r e p o r t e d in t a b l e 3 due t o the exclusion of some data f o r which breakdowns were not a v a i l a b l e . Table 5*—Volume of D i v e r s i f i e d Sales Financing During September 1952 Class of paper R e t a i l - o th e r consumers' goods: F u r n i t u r e , r a d i o s , p i a n o s , and other musical i n s t r u m e n t s , • R e f r i g e r a t o r s and o t h e r household a p p l i a n c e s R e s i d e n t i a l b u i l d i n g r e p a i r s and modernization, Miscellaneous r e t a i l . Total r e t a i l - o t h e r consumers' g o o d s . . . . of Dollar volume paper acquired Percentage of t o t a l $ 7,166,657 12,056,909 5,537,223 9,91*6,632 12 20 9 17 $31*, 707,1*21 a / 11,8a,01*9 ** 13,1*69,051* 58 20 22 $60,020,52k 100 a / Data are based on r e p o r t s from s a l e s f i n a n c e companies providing a breakdown of t h e i r r e t a i l f i n a n c i n g of ot her consumers' goods, This amount i s l e s s than t h a t r e p o r t e d i n t a b l e 3 due t o the e x c l u s i o n of some d a t a f o r which breakdowns were not a v a i l a b l e .