Full text of G.20 Sales Finance Companies : September 13, 1951

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BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
0.20

September 13, 1951
SALES FINANCE COMPANIES
JULY 1951

R e t a i l financing—Purchases of r e t a i l automotive instalment paper during July were 2 per cent
below the volume of the preceding month, according to r e p o r t s from a sample of s a l e s finance companies . A
decrease i n the financing of used passenger cars was of major importance i n the o v e r a l l decrease i n r e t a i l
automotive volume. The financing of new passenger cars was unchanged from the previous month.
Outstanding balances of r e t a i l automotive paper showed a small increase during J u l y , and a t the
month-end were 1 per cent above the l e v e l of June 30.
The t o t a l volume of other consumer goods paper acquired decreased h per cent i n July* This
change r e f l e c t e d declines i n the purchases of a l l classes of other consumer goods paper excepting r e f r i g e r a t o r s and other household appliances, financing of which was unchanged from June.
A decrease of 2 per cent i n outstanding balances of other consumer goods paper continued a steady
downward movement which has been uninterrupted since September of l a s t y e a r .
R e t a i l Financing by Sales Finance Companies

Class of r e t a i l paper
Automotive:

Percentage change, June l ? 5 l bo July 1 ^ 1
Volume of paper
Number
Outstanding balances
of cars
acquired during month
end of month

Total r e t a i l

Passenger cars;

- 2

New
Used

- 1

- 3

- 3

Commercial c a r s : New
Used

- 2
+ k

+ 1

- 3
+ 3

Other consumer goods:

0

Total

Furniture, 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
Residential building r e p a i r and modernization
Miscellaneous r e t a i l

-15
0

- 8
- 1

Wholesale financing—Purchases of wholesale automotive paper during July were moderately below
those of the preceding month. Wholesale automotive balances outstanding a t the end of July were about
8 per cent below the l e v e l of June 30, whereas a gradual expansion of such balances had taken place i n
recent months.
The volume of wholesale financing of goods other than automobiles during July was r e l a t i v e l y
unchanged from the l e v e l of such a c t i v i t y reported i n June. However, there was a f u r t h e r moderate dec l i n e in outstanding balances of nonautomotive wholesale paper i n J u l y .

NOTE.—July data, based on r e t u r n s from 111 s a l e s finance companies, are 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 represent only the t o t a l s f o r the reporting companies
and, since the reporting sample i s not i d e n t i c a l from month t o month, they are not comparable with t o t a l s
of preceding months.




Page 2
SALES FINANCE COMPANIES

Table 1 .—Automotive and Diversified Financing by Sales Finance Companies
Indexes of Outstanding Balances: December 31, 1939 • 100

End of month
and year

Total
all
sales
financing

1939.
191*0.
191*1.
19U2.
191,3.
19W*.
191*5.
19U6.
191*7.
191*8.
191*9.
1950.

100

3$

53
20
18
22
59
119
17U
228
291

Wholesale
other
than
automotive

Retail
other
consumers*
goods

100
11*0
250
1*0
8
11
38
221*
391*
1*51*
332
516

100
129
11*8
76

27
90
163
252
216
296

Retail
automotive

39
105
226
232
187
177
185
189
192
188
182
177

Wholesale
automotive

100
132
lh9
37

100
$
112
1*0

15
18
U2
88
151
2k9
325

21*

1956-July
August#...
September.
October...
November ••
December..

266
27k
282
288
291
291

31U
322
330
331
328
325

163
179
192
21*0
280
296

1*36
1*21*
1*22
1*35
1*78
516

1951- January. .
Februaiy.
March....
April....
May. . . . . .
June.....
July.....

287
286
290
29k
298
302
298

320
315
312
311
316
r321
32k

291
306
356
382
1*01
l*o5
372

61*8

759
906
91*3
899
821*
737

S

171

166

161
156
153
rl50
1k6

r—Revised.
a/

Indexes as of December 31 for the years of 1939, 1940, and 1941 are based on f i g u r e s reported by
s a l e s 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 s a l e s finance companies for each month from
those reported by the same companies for the preceding month, and by linking these percentages
t o the indexes for the preceding month.

Table 2.—Relative Importance of Loans Made by Sales Finance Companies
During July 1951
and Outstanding Balances at End of Month

Class of paper

Paper acquired
during month

Outstanding balances,
end of month

Amount

Percentage
of t o t a l

Amount

$886,246,236

100

$3,692,129,739

100

77.796.51*1*
2^,296,319
52,1*98,225

9
3
6

227.1*98.026
116,21*0,1*01*
111,257,622

6
3
3

808,1*1*9,692

91

3,1*61*,631,713

9k

Percentage
of t o t a l

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 addition to t h e i r sales financing
operations, reported 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
J u l y 19=?1
and Balances Outstanding a t End of Month
Volume of paper acquired
during J u l y 193>1
Class of paper

Outstanding
balances
J u l y 31,
1951 a /

By companies
reporting
outstanding
balancee a /

By a l l
companies
reporting

R a t i o paper
ecquired t o
outstanding
balances ty

$337,732,375
14*1,1461,596
Total wholesale - other than a u t o m o t i v e . . .
11,529,1*76
Total r e t a i l - other consumers* goods
22,925,852
I n d u s t r i a l , commercial, and farm equipment
9,1*37,128

•331*,618,903
1*38,705,1*55
11,157,539
20,51*9,558
9,191,382

$2,567,522,377
581,601*,155
51*, 790,717
217,198,1*68
101,21*8.705

13
75
20
9
9

*823,086,127

$811,222,837

$3,522,361*,1*22

23

a/
b/

Data are based on f i g u r e s from s a l e s finance 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 b a l a n c e s .
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 July 195>1
Paper

Number of c a r s
Class of paper
Number

Percentage
of t o t a l

Dollar
volume

31*0.602

100

9l*,00l*
16,1(60
213,1*31*
16,701*

27
5
63
5

273,991
New c a r s (passenger and commercial).•
Used cars (passenger and commercial).

acquired

100

$1*36,31*8,068 a,

231*, 869
39,122

1k

86

397,922,621*
38,li25,1*1*1*

$328.951*.1*89 %J
129,535,573
22,972,628
I6I1,1*26,310
12,019,978

Percentage
of t o t a l
100
39
7
50

h

100

91
9

b/ Data a r e 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 reported 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 J u l y 195>1

Class of paper
R e t a i l - other consumers* goods:
F u r n i t u r e , r a d i o s , pianos, and other musical i n s t r u m e n t s . .

of

Dollar volume
paper acquired

$ 3,081,722
8,336,280

Percentage
of t o t a l

7
20

8

3,582,910
6,817,362

16

$21,818,271* a /
11,529,1*76
9,1*37,128

51
27
22

$1*2,781*, 878

100

~TJ Data are based on r e p o r t s from s a l e s finance 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 o t h e r 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 t h e
exclusion of some d a t a f o r which breakdowns were not a v a i l a b l e .