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

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
November 29, 1945
R&S sfc - 9
SALES FINAliiCE COMPANIES

OCTOBER

1946

Rete.il finaniinf. The total volume of ret&il financing by sales finance companies during
October was considerab y arger than in the precedi~ ~onth and end-of-month outstanding balances
continued to increase gradually. The 12 per cent gain in dollar volume of retail automotive paper
acquired was accompanied by a fu~her slight rise in the amount outstanding. Outstanding balances
on contracts arising from the sale of other consumers' goods increased only 6 per cent during
October, although the volume of purchased paper exceeded the September figure by more than onefourth.
j·.

.

The increase in total retail automotive financing, shown in the table be low, was due to
substantial gains in both number and dollar volume of new and used commercial cars and of used
passenger oars. New passenger car financing dropped somewhat below the September volume~
.·i

Retail financing of consumers' goods other than autanotive showed considerable expansion
in October reflecting increases in all classes of paper. The largest gain was in repair and
modernization financing but paper arising from the sale of household appliances, which is still in
small volume, was up sharply for the second consecutive month.
Retail Financi;g

'·

Class of retai 1 instalment paper

£¥

Sales Finance Companies

Percent_ll_ge cha!_lg_e, Sep:t;ember 1946 to uctoDer 1945
Number of
Volume of paper
Outstanding balances,
cars
acquired during month
end of month
+12
--

New
Used

- 6

- 4

Commercial cars: New
Used

+25
+6

+21
+11

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

-

+6
--

Total retail

Passenger cars:

other consumers' goods a Tota.l retail
Furniture, radios, musical instruments
Refrigerators and other household applis.nces
Resident~e.l building repair and modernization
~iscellaneous retail

,...

i

+4
--

+ll
--

Automotive:

+13

+14

+27

+10
+25
+33
+21

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

liholesale financing. Yiholesale automotive paper ac-suired in October was nearly one-third
larger than in the preceding month. :Most of this increase was in the financing of new passenger and
commercial vehicles, but transactions in used vehicles also were well above the September volume.
~holesale financing other than automotive increased sharply in October.

•
~.

l

r

.....

I

Ratio of paper acquired· to balances outstan~. The ratio of paper purchased during the
month to balances outstanding at the end of the month rose 4 points to 26 per cent for October.
Ratios were higher for all classes of paper, but the increase for retail financing was less marked
than for wholesale. Retail automotive paper purchased in October was 21 per cent and other retail
consumer paper 16 per cent of the respecti w balances outstanding at the end of the month. The volume
of wholesale automotive paper acquired amounted to nearly three-'iuarters of the balances outstanding
on October 31 •

....

~
~

Note: October data, based on returns fran 172 sales finance companies, are compiled in the
same manner as those shorm in earlier reports. Aggregates represent only the totals for the reporting
oampanies and, since the reporting sample is not identic&l from month to month,.they are not comparable
w1 th totals of preceding months.




Page 2
SALES FINANCE COI4PAl<IES

Table I.--Automotive and Diversified Financing by Sales Finance Compa11ies
Indexes of Cutstandin[ Balances: December 31, 1939 • 100 ~

End of month
and year

Total
all
sales
financing

Retail
automotive

Ylholesale
automotive

Wholesale
·other
than
automotive

Retail
other
consumers'
goods

Industrial,
commercial,
and fann
equipment

1939 •••..•.•••••••••••

100

100

100

100

100

100

1940 • •••••..•......•.•

136

132

169

140

129

131

1941 •••.•••.. .••.....•

152

149

176

250

148

147

194.2 •••••• •.••••••••••

53

37

112

40

76

61

1943 •••.••.•••••••••••

20

13

40

8

30

27

1944 . •••.•.•••....••••

18

15

24

11

26

26

19
18
18

16
16
16

24
23
24

10
10
11

26
26
26

27
25
23

18
18
18
18
18
18
18
18
18
19

15
14
14
14
14
14
15
15
15
16

25
26
26
26
25
24
20
18
17
18

14
15
18
17
16
16
16
19
21
28

26
26
26
27
28
29
30
31
33
35

27
26
30
32
28
27
27
25
24
24

.......
......
......
1945 - January .......
February ......
March ........
April .........
May ...........
June ..........
July ..........
August ........
September .....
October .......

1944 - October

November
December

~

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 calc\llating the percentage
changes of the outstanding balances reported by seles finance companies for each month from
those reported by the same companies for the preceding month, and by linkint; these percentages
to tre indexes for the preceding month.

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

Outstanding balances,
end of month

Peper acquired
during month
Class of paper

Percentage
of total

Amount

Percentage
of total

Tote 1, all classes of paper~·· ......

$91,649,575

100

$307,997,579

100

Tote. 1 loans ••.•.••••••.••.•••••.••••
Small (personal) loans •••....•••••
Business loans •••.•••••••••••..•••

32,895,027
9,268,535
23,626,492

36
10
26

87,216,338
44,649,279
42,567,059

28
14
14

Total sales financing ~ ••••••••••••

58, 7S4,548

64

220,781,241

72

Amount

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



Page 3
SALES FINANCE COMPANIES

Table 3.--Automotive and Diversified Financing by Sales Finance Companies
January 1942 c 100 ~

1944

. . .

ITEM

1945

. . .

. . .

Po

<

>.
ell

....

;...
..,§ ..,

<

en

0

32
41

30
38

31
39

34
45

46

33
44

36
50

40
56

2
3

3
4

2
4

2
4

2
3

3
4

3
5

4
6

3
5

22
21

18
17

25
24

28
24

30
26

38
30

40
30

56
43

74
56

92
68

27
37

26
36

27
37

35
48

33
45

34
46

37
53

38
54

36
50

37
54

43
62

14
28

22
46

17
36

15
30

19
40

18
35

18
37

20
41

19
39

19
39

31
56

33
62

12

12

14

16

15

18

16

15

15

12

14

15

19

N'ew cars (passenger and commercial) ••••••••••••••

4

4

5

6

4

6

5

5

7

5

5

6

10

Used cars (passenger and commercia 1) •......••.•••

57

55

65

71

73

80

70

68

56

47

62

56

67

Total diversified f'ina.l'!ci nt; •. •....•.. , ..•.•.•.•..••

45

44

45

44

38

49

51

51

58

53

62

63

84

Total retail, other consumers' goods •••••.•••••••

59

58

59

53

48

55

63

66

75

69

81

82 104

Furniture, radios, ITIUSical instrun1ents •••.•••••

29

23

24

27

19

26

25

28

27

26

26

24

26

Refrigerators and other household appliances •••

17

14

14

17

16

22

24

33

33

31

28

34

43

repairs and rr.odernization. 136 133 114

99

94 114 129 151 172 159 173 158 ~10

·+>
()

s.

0

l>
0
;z;

~

.., ...
ell

.CD

ell
..ai

Tcte.l number of cars financed ••••••••••••••••••••••
Total volume of paper acquired •.•••••••••••••••••.•

32
42

29
37

25
33

24
31

24
31

New passenger cars • .•••.•••••• •. Number ••• •••.•••••
Paper acquired ••••

4
6

4
5

3
5

3
4

New commercial cars • ••••••••••• Number • •••••••••••
Paper acquired, •••

27
22

22
19

30
25

Used passenger

Paper acquired,, ••

36
51

32
45

I sed commercial cars •• ••••••••• Number ••• •••••••••
Paper acquired ••••

16
34

Total volume of paper acquired ••..•...... , .••.•••••

()

~

,Q

s.

.-t
;l

bO
;l

+'

Po

CD

+'
()

RETAIL .AUTOMOTIVE

cars •••••••••••• Nun1ber •. ••••••••••

34

WHOLESALE AUTOMOTI\~
(Paper acquired)

DIVERSIFIED FI~.NCING
(Paper acquired)

•

Residential

buildin~

.

Miscellaneous retail ••••••••••••••••••••••••••• 113 139 207 172 154 143 179 137 171 143 242 312 378
Totll.l wholesale, except auton1oti ve •.•............

4

5

5

13

Industrial, conmtercial, and farm equipment •••••••

68

35

39

54

!/

8

9

9

11

11

10

24

55 206 122

53

50

39

47

43

90

7

10

Indexes are derived by calculating the percentage changes in the number of cars financed or the
volume of paper acquired hy sales fir.ance companies during each month from the number of cars
financed or the volume of paper acquired by the same companies during the preceding mont},, and by
linking these percentages to the indexes for the preceding month. The indexes for "Total retail
aut.omoti ve," "Total wholesale automotive," and "Total retail, other consumers' goods" are based on
all figures reported for these items regardless of whether or not breakdowns could be supplied.




Page 4

SALES FINANCE COMPANIES

Table 4.--Automotive and Diversified Financing by Sales Finance Companies
Paper Acquired During October 1946 and Balances Outstanding at End of Month
Volume of paper acquired
during October 1946
Cl;.ss of paper

By companies
reporting

Outstanding
balances
October 31,
1946

Ratio paper
acquired to
outstanding
balances

By all
companies
reporting

bale.nces a

Total retail automotive •.... ,,., .••• ,., .. ,
Total wholesale automotive ••••••••••••••••
Total wholesale - other than automotive •••
Total retail - other conswr.ers' goods •••••
Industria 1, con®ercial, and faro equipment

.28,312,328
21,465,508
880,927
10,850,Hl8
461,131

l;27,628,959
21,268,086
830,677
10,076,854
458,645

U30,869,958
29,096,023
1,666,598
64,118,730
4!166,976

21
73
50
16

Total sales financing •••••••••••

~61,970,092

f60,253,220

i229,917,286

26

outstsndi~J

!I

y

11

Data are based on figures from sales finance companies able to report both their paper ac'iulred and
their outstanding balances.
Ratios obt~ined by dividing paper acquired (column 2) by outstanding balances (column 3),
Table 5.--Number of Cars Financed and Volume of Paper Acquired
by Sales Finance Companies During October 1946

Number of cars
Class of paper

Paper

Number

Percentage
of total

Total retail automotive ••••••••••••••••

40,958

100

New passenger care •••••••••••••••••••
1lew commercial cars ••••••••••••••••••
Used passenger cars ••••••••••••••••••
Used camu~rcial oars •••••••••••••••••

172
1,832
36,883
2,071

Total wholesale automotive •••••••••••••
liew oars (passenger and commercial) ••
Used cars (passenger and comn~rcial).

Dollar
volume

~24,017,403

y

acquired
Percentage
of tot&l

!I

100

90
5

206,303
2,099,ll6
20,345,572
1,366,412

1
9
84
6

23,330

100

U8,822,827

100

12,669
10,661

54
46

9,541,914
9,280,913

51
49

!/ Data

are based on reports from sales finance companies providing a bre~kdown of their retail and
wholesale automotive financing. These amounts are less than those reported in table 4 due to the
exclusion of some data for which breakdowns were not available.
~ Less than one-half of one per cent.

,,

l

Table 6,--Volume of Diversified Sales Financing During October 1945

'

Class of paper
Retail - other consumers' goode:
Furniture, radios, pianos, and other musical instruments ••
Refrigerators and other household appliances ••••••••••••••
Residential building repairs and moderni~ation ••••••••••••
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

lll

l

_,
i

827,613
370,583
6,366,798
3,261,132

U0,816,126
880,927
461,131

7
3
52
27

!I

89
7
4
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 4 due to the
 exclusion of same data for which breakdowns were not available.


1

'

I

I

I

l