Full text of G.20 Sales Finance Companies : November 18, 1947

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BOARD OF GOVERNORS
OF TH£
FEDERAL RESERVE SYSTEM

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November 18 1 1947

G.20
SALES FINANCE COI4PANIE9

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SEPTEMBER 1947

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Retail financing.--Sales finance companies reported a marked gain in the volume of retail
automotive financing in September and a moderate increase in total diversified financing. Outstanding balances on both classes of paper e:xpanded further during the month.
The 10 per cent rise in total retB.il automctive paper acquired shcmn in the table below
reflected increases in the financing of all types of vehicles. Paper based on sales of used cars
was up somewhat more sharply than that based on new cars.
Total diversified financing increased S per cent over the August volume as a result of
advances in all classes of paper. The largest percentage increase was in paper arising from sales
of furniture, radios, and musical instruments •

.>

Retail Financing. by Sales Finance .companies

Class of retail instalment paper
Automotive:
Passenger

Total retail
cars~

Commercial cars:
Other consumers' goods:

Percen_tage cha11g_~ Au~rust 19l.t7 to September 1947
Number
Vol.Uille of paper
Outstancllng balances,
of cars
acquired during month
end of month

.±...§_

+10

+11

.!..2

.±..£

+

4
+7

+6
+9

New
Used

+6
+8

+ 8'

Total

Furniture, radios, musical instru.mer.ts
Refrigerators a~d other household appliances
Restcential building repair and modernization
!ftscellaneous retail

.tJl

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

New
Used

+15
+8
+3
+7

,

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

Wholesale filk~cing.--The September vo~ume of automotive financing was substantially
above that of August, reflecting marked increases in tbe financing of both new and used vehicles.
Automotive outstanding balances expanded during the month and balances based on wholesale transactions in other merchandise continued to decline.
Ratio of paper acquired to balances outstanding.--The ratio of paper acquired during the
month to balances outstanding at the end of the n:onth increased 2 percentage points to 37 for ·
September •

...
Note.--September data, based on returr1s from 137 sales finance companies, are conpiled, in
the same mar.ner 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 manths •

....



Page 2
SALES FINANCE COJIPANtES ·

Table 1.--Automotive and DiveriSified Financing by Sales Finance Companies
Indexes of Outstanding Balances, December 31, 1939 • 100 ~

Wholesale
other
than
autamo,ti ve

Retail
other
consumers'
goods

100

100

100

100

132

169

l!JO

129

131

152

149

175

250

148

147

1942 ••••••••••••••••••

53

37

112

40

76

61

1943 •••.••••••••.•••••

20

13

40

8

30

27

.•••••••••••••••••

18

1.5

24

11

26

26

1945 ••••••••••••••••••

22

18

27

38

39

23

1946 ••••••.••••••••••••

59

42

90

224

105

59

1946- September ••••••
October ••••••••

44
49

33
36

66

57

125
146
177
224

82
90
97
lOS

46
49
57

110
116
124
1.36
145
157
168
180
192

60
61
68
67
70
71
74
87
86

End of month
and year

Total
all
sales
financing

1939 •••.••••••••••••••

100

100

1940 •••••••.••••••••••

136

1941 •••.••••..••••••••

~944

53
59

- January •••• .- ....
February ••••••.•

62
68

45
48

March ••••••••••

73

53

78
82
87
91'
94
100

April ...........
1.1a;~r •••

•••••••••
Jllne •••••••••••
Ju?--Y•••·······~

J\ugust· •••••••••
September ••••••

l'iholesale
automotive

78
90

38
42

December •••••••

November •••••••

1947

Retail
automotive

252
287
32S
341
351
346

95

10.5
111

58
62

110

106
111
109
103
122

66

69
72
75

I

. 336
333

321

Industrial,
commercial,
and farm
equipment

59

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Indexes as of December 31 for the years o!f' 1939, ·1940, lind 1941 are baaed 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 Loaus Made by Sales Finance Companies
During Sep~..ember 1947 and Outstanding Balances at End of Month

balances,
end of month

Ou~5tanding

Paper acquired
during month
Class of papar
Amount
Total, all. classes of paper ~······••

$472 C32L779

100

Total loan5 •••••••••••••••••••••••••
Smell (personal) loans •.... , .... ,.
Business loans ••••••••••••••••••••

.;o, '~26,';n2

11

15,911,712
34,411.,S27

4
7

lBl ,J B6,r::2z
88,322,070
92,861!,457

liJ
7
7

!J............

421,7o6,S40

89

1,111,539,201

86

Total sales financing
~'Included

Amount
!k1

'~??_7?&::_7?A

--

Percentage
of total

Percentage
of total

1QQ__

in this classification are on~y those firms· which, in .addition to their sales financing
operations, reported loan activities.




Page 3
SALES FINANCE COIIPAiliES

Table 3.-~utamoti.- and Di.-raified Financing by Sales Finance Companies
Paper Acquired During September 1947 and Balances Outstanding at End of llon'IOh

.

Volume of paper acquired
during September 1947
'

Clan of paper

Outstanding
balances
September 30 1

By ccmpanies

By all
companies
reporting

reporting

1947

outatandi~

!.1

Ra,tio paper
acquired to
outatandi,;,
balance• b

balances a

Total retail automotive ••• ,.,, •• , •• ,., ••••
Total wholesale automotive •••.•••.••••••••
Total wholesale- other than automotive,,,
Total retail - other consumers• goods •••••
Industrial, commercial, and fare equipment

$110,576,441
270,744,285
6,9)6,511
44,724,166
1 2 343 1 589

~108,564,187

Total sales financing •••••••••••

$434,32)~,992

$430~;2032529

268,989,011
6,936,330
44,586,709
1,121,222

$ 597,865,498

191,742,710
24,081,424
350,058,553
1J,208,!l•2

18
140
29
13
8

$1 1 177 2656 1654

37

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Data are based on figures from sales finance compan1es able to report both their paper ac~uired and
their outstanding balances.
Ratios obtained by dividing paper acquired (column 2) by outstanding balances {column 3),
Table

4.--~umber

r

of

.~ars

r:

by Sales

Class of paper

Fi~ance

Financed and Volume of Paper Acquired
Companies During September 1947

---

·~~·

of cars

Number"

"

--~------

Percentage
of total

~~

-100

Total retail automotive................

105,624

New passenger cars •••••••••••••••••••
}lew c0llllll8rcial cars •... ,., ......... ,.
Used passenger cars ••••••••••••••••••
Used cODDr.erci al oars ...................

28,885
7,216
64,027
5,496

27
7
61

Total wholesale auton1oti ve •• ,., ••••••••

182,222

100

liew cars (passenger and cocmercial) ••
Used cars {passenger and coDDJ,l8rcial).

161,019
24,210

87
13

!(

Paper
Dollar
volume

i
-,

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5

$

91~~2 ,467 -;

acquired
Pe:-centage
of tot&l

-----

34,078,600
10,379.,275
42,3?9,1!09
4,195,183

I S2!.2,1QS,233 Y
2;Lil, 752 ,91J3

27 ,JS;~ ,285

lQQ

37
11

47
5
100

89
11

Data are based on reports from sales finance compNlies providin~ a breakdown of their retail and
wholesale auto~otive financing, These amounts are less than those reported in table 3 due to the
exclusion, of some data f!lr whicll. breakdowns -re not available.

Table 5.--Volume. of Diversifi"ed Sales Financing During S~ptember 1947

Claas of paper
Retail - other consumers• goode:
Furniture, radios, pianos, and other musical instruments ••
Refrigerators and ether 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 vol\l!lle
paper ecquired

Percentage
of total

3 1,813,287
4,476,290
26,066,141
11,786,706

50

$44,1h2,424 a/
6,936,5111,343.589

84
13

3
9

22

3

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 a~ilable.