Full text of G.20 Sales Finance Companies : October 10, 1946

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
October 10, 1946

G.20
SALES FINANCE COidPANIES
AUGUST 1946

Retail financing.-The volume of autoaoti ve and other retail financing continued to
advance in August, and end-of-month outatanding balances on both types of paper showed a further
substantial riae.
The 1 per cent increase in retail autanoti w fins.noing reflected gains in all autanoti w
transactions except those in used oars. New pasaenger oar financing continued its sharp riae fran
very low -rtime levels, and in August accounted for more than one-third of the total dollar volume
of retail autanoti w paper acquired. Financing of new c0111111ercial vehicles, after declining somewhat
in July, rose considerably in August.
Retail financing of consumers' goods other than automotive showed a further substantial
increase in August. Sizable gains wre reported for all classes of paper, with the major increase
occurring in repair and modernisation credit.
Retail Financing by Sales Finance Companies
change. July 1946 to AUE_Uit 1946
Volume of paper
Outstanding balances,
acquired during month
end of month

PercentaEt~_

Class of retail instalment paper
Automotiw:

Number
of oars
.... 6
--

Total retail

Passenger cars&
Ccameroial oars&
other oonaunera' goodu

New
Used

+17
+ 2

New
Used

+24
+ 4

Total retail

Furniture, radios, musical instruments
Refrigerators and other household appliances
Residential building repair and modernization
Miscellaneous retail

+
-+22

1

+ 8

- 2

...
...

......

+30
+ 6
+ 9
+ 1
+ 6
+10
+ 8

-+10

...
...
...

Wholesale finanoi~.--The August volume of wholesale automotive financing increased about
one-fifth, and other wholes~• financing rose by about one-fourth compared with. the July volume.
Outstanding balances on both classes of paper increased substantially during the month.
Ratio of paper acquired to
month to balances outstandiDg at the
Wholeaale automotive paper purchased
outstanding at the end of the month,

balances outstanding.-The ratio of paper acquired during the
end of the month roae 2 percentage points to 43 for August.
in August amounted to 143 per cent of the respecti w balances
indicating a continued high rate of turnowr in this paper.

Note: August data, based on returns from 153 sales finance companies, are oanpiled 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 and Diversified Financing by Sales Finance Companies
Indexes of Outstanding Balancesa December 31, 1939 • 100 ~

End of month
and year

Total
all
sales
financing

Retail,
automotive

Wholesale
automotive

Wholesale
other
than
automotive

Retail
other
consumers'
goods

Industrial,
commercial,
and farm
equipment

1939 •....•..•.•...••••

100

100

100

100

100

100

1940 ••••••.••.••••••••

136

132

169

14:0

129

lU

1941 •••••••••••••.•• ••

162

14:9

116

2,60

14:8

1.-T

194-2 •• ••••••••••••••••

63

31

112

4:0

16

61

1943 •••.••••••..••••••

20

13

•o

8

30

27

1944 •••••••••..•••••••

18

16

2'

11

26

26

1946 ••••••••••••••••••

22

18

27

38

39

23

194:6 -

18
18
19
21
22

16
16
16
17
18

18
lT
18
2'
27

19
21
28
32

31

26
24:
2'
2'
23

18
19
20
22

28
36
36
36

"

u

April ••••••••••

23
26
26
29

'9
66
68

"'6

26
27
32
315

llay ••••••• ~····

31

26

3T

Tl

67
82
89
76

38

Au~at •.•••••••

September ••••••
October ••••••••
lloWJD.ber • ••••••
Deoember •••••••

194:6 - January ••••••••
February ••• ••••
~oh ••••••••••

June •••••••••••
July •••••••••••
August •••••••••

33
37
4:1

u

to

26
28
30

11
91
106

4:8

66

33
36
37
39

81

-

as

as

"

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 compenies for the preceding month, and by linking .these percentages
to t.t:e indexes for the preceding month.

Table 2.--Relative Importance of Loans Made by Sales Finance Companies
During August 1966 and Outstanding Balances at End of' Month
Paper acquired
during month
Class of paper
Amount

Outstanding balances,
end oi' month

Percentage
of total

Amount

Percentage
of total

Total, all classes of paper ~··••••••

t2U,068,62~

100

t688,996,672

100

Total loans ••.•.••••••••••••••••••••

lT
5
12

122,293,966
60,209,686
62,0M,270

21
10

Business loans •••.••••••••••••••••

,0,138,,25
12,621,183
27,610,84:2

Total sales finllll cing ~ ••••••••••••

200,920,198

83

4:66,701,618

19

Small (personal) loans ••••••••••••

11

Included in this classification are only those firms which, in eddltion to their seles financing


operations, reported loan activities.


Page 3

SAUlS. FIJWICB CXIIPAIIIBS

Table 3.-~utomotive and Diversified Financiac ~ Sales Finance Campan1ea
Paper Acquired Durin& August 1946 and Balancee Outetanding at End ot llonth
;.

VelUM of paper acquired
during Auguet 1946
Clue of paper

By. all
campan1ea
reporting

By

campaniee
reportiac

outatandi~

Outstandlnc
balancee
Auguet 31,
1946

!I

Ratio paper
acquired to
out a tan~
be1ancee b

balanoee a

• 64,042,039
126,440,381
3,666,246
23,482,336
Total retail - other consumers' goode •••••
1,682,9'10
Industrial, commercial, and tara equipment

• &ll,401,881
126,14'1,892
3,603,166
22,660,84'1
1,309,463

$244,23'1,'168
8'1,616,840
'1,888,080
136,'144,26'1
'1,'168,486

22
143
44
16
1'1

Total sales financing ••••••••••• $208,102,9'10

$206,913,248

$484,266,430

43

Total retail automoti¥B •••••••••••••••••••
Total wholesale aut.omoti ve, ••.••••••• , ••••
Totl1 wholesale - other than automotive •••

!( Data are baaed on figures from sales finance companies able to report both their paper acquired and
their outstanding balances.
Ratio& obtained by dividing paper acquired (column 2) by outetanding balances (column 3).

y

Table

4.--~umber

of Care Financed and Volume ot Paper Acquired
Auguet 1946

by Salee Finance Companies During

!lumber of care
Claaa of paper

Paper acquired
Dollar
volUM

!lumber

Percentage
ot total

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

66!9'12

100

$4612231 '1'14

passenger care •••••••••••••••••••
commercial oars ••••••••••••••••••
Used paeeenger care •••••••••••••••.•••
Used commercial oars •••••••••••••••••

18,036
6,0ll
40,081
2,846

2'1
8
61
4

16,'11'1,896
6,'1'1'1,312
22,681,6ll
2,146,966

Total wholesale automotive.; •••••••••••

ll21331

100

fll4128'1 .436

cars (passenger and commercial) ••
Used cars (passenger and commercial).

96,'110
16,621

86
14

100,823,046
13,484,390

1iew
~ew

New

Percentage
ot total

!I

100
M

12
49
6

!I

100
88
12

!/ Data

are baaed on reports from sales finance companies providing a breakdown of their retail and
wholesale automotive financing. These amounts are leas than those reported in table 3 due to the
exclusion of some data for which breakdowns were not available.

Table 6.--Volume of Divereified Sales Financing DuriDgAuguet 1946

Class of paper
Retail - other consumer•' goodea
Furniture, radioe, pianos, and other lllUSical ine~ntil ••
Refrigerator• and other household appliance•••••••••••••••
Reaidential building repairs and modernisation ••••••••••••

Dollar volof paper acquired

• 1,034,8'1'1

Percentage
ot total

4

1~186,803

4

lliaoellaneous retail •••...••••..•.•••••••• , •••••..•.. ,., ••

14,336,223
6.483.062

61
23

Total retail - other consumers' goods ••• ,.,., •••• ,., •• ,., •••• • •
Total wholesale- other than autamoti~•••••••••••••••••••••••
Industrial. oc:eaercial. and f&ra equipnent ••••••••••••••••••••

$23,039,96&
3,666,246
11682,9'10

Total divaraitled tiD&noing ••••. ,·, ,,·,, .•. , ..••

!f

!I

82
13
6
100

:oe:ta are baaed on reports tr081 ealee tiuanoe campanlea providiq a breakdown of their retail
financing of other consumers' goode. Thie amouut 11 le11 than that reported in table 3 due to the
excluaion of same data for which breakdowns wre not aveilable,