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[ B R A . ^ ^
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- RESERVE - ^

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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 .