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(9* C A R D OF GDVERNC t l FEDERAL RESERVE SYSTEM r — r / b ^ J i i X ~ . £ < : / V r U L / V ^ ' o C r z * ^ June 14, 1966. Mr. B. U. Ratchford, Vice President, Federal Reserve Bank of Richmond, Richmond, Virginia. 23213 ' = Dear Sir: Starting this month, we are converting our L.4,1 report into an official press release of the Board. As in,the past, the release will focus on auto loan characteristics at major sales finance companies, but for the first time it will include crossclassification of contracts according to maturities and dealercost ratios. -1 • The release is based on data for 11 large companies accounting for about 90 per cent of all new car contracts acquired by the industry, A copy of the first press run is enclosed for your information. All names on the dis.tribution list for the old L.4.1 will be automatically placed on the mailing list for the new report. Should any of your staff have an interest, their names can also be added by writing to the Board's Publication Section, "dr, let us know and we will be glad to arrange it. Sincerely yours, J, Tynan Smith, Associate Adviser, Division of Research and Statistics. Enclosure. RECEIVE RESEARCH JU:i IT 19FG FEDERAL R E S E R V E B A N K OF RICHMOND " • • FEDERAL • V, Qfc°Vf»' •. statistical RESERVE release For immediate release / 6.25 June 14, 1966. Autom )bile Loans by Major Sales Finance Companies THE PER CENT OF N E W CAR CONTRACTS FOR 31-36 M O N T H S HAS GRADUALLY INCREASED SINCE 1984 Fir cent Maturityr Distri[but ion - New Car Contracts 24 months 25-30 31-36 Over 36 Balloon Total paper or less months months months Seasonally adjusted April 1966 March 1966 February 1966 January 1966 % % 15.4 15.1 14,8 14.7 3.3 3.3 3.3 3.2 % 80.1 80.5 80.9 81.1 % 0.5 0.5 0.4 0.4 % 0.7 0.6 0.6 0.6 126 154 130 128 15.1 15.2 15.1 3.3 3.3 3.8 80.6 80.3 79.9 0.4 0.5 0.5 0.6 0.7 0.7 18 months 19-24 25-30 Over 30 Balloon paper or less months months months % % % % 100.0 100.0 100.0 Tbtal 138 152 144 No. of contracts reported (000) % Seasonally adjusted April 1966 March 1966 February 1966 January 1966 8.4 7.9 8.0 7.7 20.9 20.1 19.9 18.6 32.4 32.6 32.7 32.1 37.9 39.0 38.9 41.0 0.4 0.4 0.5 0.6 100.0 100.0 100.0 100.0 44 53 46 45 7.4 7.1 6.8 19.1 17.9 16.8 32.6 32.0 32.9 40.5 42.6 43.0 0.4 0.4 0.5 100.0 100.0 100.0 47 52 50 Unadjusted April 1966 Month ago Year ago Note: t i Unadjusted April 1966 Month ago Year ago 100.0 100.0 100.0 100.0 No. of contracts reported (000) Monthly data available on request for years 1960-65. Automobile Loans by Major Sales Finance Companies THE PROPORTION OF N E W CAR CONTRACTS W I T H DEALER COST RATIOS* p.., OVER 100% IS RUNNING ABOVE YEAR AGO LEVELS 1964 Seasonally adjusted April 1966 March 1966 February 1966 January 1966 1965 Distribution of Dealer Cost Ratios - New Car Contracts loan as per cent of dealer cost No. of contracts 90 or 91-100 101-105 106-110 Over 110 less reported (000) Total 7. % % % % 41.9 43.1 42.6 43.2 31.5 13.1 30.7 31.4 13.5 31.1 13.5 12.9 7.1 7.0 7.1 6.9 6.0 5.7 6.1 5.6 100.0 100.0 100.0 100.0 113 139 118 117 42.6 43.1 45.2 31.1 30.6 30.1 13.5 13.3 12.7 7.1 7.1 6.7 5.7 5.9 5.3 100.0 100.0 100.0 124 138 131 Unadjusted April 1966 Month ago Year ago Seasonally adjusted April 1966 March 1966 February 1966 January 1966 Distribution of Dealer Cost Ratios - Used Car Contracts t per cent of wholesale value) No. of contracts 90 or 91-100 101-110 111-120 Over 120 reported (000) less Total 7. 70 % .% % 22.9 23.3 24.3 23.9 22.9 22.3 23.2 25 .4 23.0 24.4 24.4 23.8 15.3 15.6 15.1 14.1 15.9 14.4 13.0 12.8 100.0 100.0 100.0 100.0 37 43 37 38 22.5 23.6 - 26.8 22.2 22.2 25.1 23.6 24.5 24.5 16.1 15.7 13.3 15.6 14.0 10.3 100.0 100.0 100.0 39 ' 43 42 Unadjusted April 1966 , Month ago Year ago *The value of the loan (excluding finance and insurance charges) as a percentage of the car's cost to the dealer. ^ 7 G. 25 Automobile Loans by Major Sales Finance Companies DEALER COST RATIOS AND MATURITIES ON AUTOMOBILE INSTALMENT LOANS APRIL 1966 NEW CARS (Percentage distribution of cdntracts) Not seasonally adjusted Loan as . per cent of dealer cost 90% or less 91% to 100% 101% to 105% 106% to 110% Over 110% Total Maturities 24 months 25-30 31-36 Over 36 months months months 0.1 0.2 0,1 0.1 Balloon paper 0.1 > 0.2 0.1 Total 10.7 2.0 0.6 0.3 _0J_ 1.9 0.9 0.4 0.1 0.1 29.9 27.9 12.3 6.6 5.2 M 0.1 42.? 31.1 13.5 7.1 -Ij. 13.9 3.4 81.9 0.5 0.4 100.0 USED CARS (Percentage distribution of contracts) Not seasonally adjusted Loan as per cent of wholesale value 90% or less 91% to 100% 101% to 110% 111% to 120% Over 120% . Total Maturities 18 months or less 4.1 1.0 0.6 0.4 6.7 19-24 25-30 Over 30 months months months 5.9 3 .7 3.0 2.0 2.1 16.7 6.1 7.7 8.4 5.6 5.4 6.3 9.7 11.6 8.1 7.5 33.1 43.3 Balloon paper 0.1 22.5 22.2 23.6 16.2 15.6 0.3 100.0 * 0.1 0.1 ,* Note: Details may not add to totals because of rounding. *Less than one-tenth of one per cent. Total ^
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