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Not for publication >ARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM L.4.2 April 15, 1965 I)EC0NTR0I^. - & ^ SIX. MOS^HS DIRECT AUTO LOANS BY COMMERCIAL BANKS \z z February 1965 January 1965 Three months ending February 1965 1964 NEW CAR CONTRACTS Per cent of contracts written for: Under 36 months 36 months Over 36 months 39.3 59.4 1.3 40.6 59.1 0.3 40.0 59.2 0.8 42.9 56.9 0.2 93 94 94 94 31.4 33.0 38.6 39.4 Contracts written for 36 months: Most frequent loan/value ratio l/ Per cent of contracts with ratios above 93 per cent USED CAR CONTRACTS Per cent of contracts written for: Under 19 months 19-24 months 25-36 months 33.3 38.5 28.2 35.0 36.3 28.7 34,6 37.7 27.7 38.5 38.0 23.5 94 94 9^ 94 34.2 33.8 34.8 35.6 Contracts written for 24 months or less: Most frequent loan/value ratio l/ Per cent of contracts with ratios above 94 per cent l/Computed mode of ratios, based on dealer-cost values for new cars and wholesale prices for used cars as 100 per cent. A loan of 90-95 per cent of dealer cost generally amounts to around 70-80 per cent of list price. Not for publication L.4.2 -2~ DEALER AUTO LOANS BY COMMERCIAL BANKS (PURCHASED PAPER) February January 1965 1965 Three months ending February 1964 1965 NEW CAR CONTRACTS Per cent of contracts written for* Under ?6 months 36 months Over 36 months 22.1 77-0 0.9 20.4 79.1 0.5 23.4 75.8 95 94 95 39•8 38.5 44.7, 0.8 22.3 76.8 0.9 Contract written for 36 months: Most frequent loan/value ratio ij Per cent of contracts with ratios above 95 per cent : 95 43.9 USED CAE CONTRACTS Per cent of contracts written for: Under 19 months 19-24 months 25-36 months 19.1 31•3 49.6 19.5 31.1 49.4 . N/A 95 50.1 51.5 20.0 31.8 48.2 21.8 35.7 44.5 Contracts written for 24 months or less: Most frequent loan/value ratio l/ Per cent of contracts with ratios above 95 per cent 95 5W 51.9 1/ Computed mode of ratios, based on dealer-cost values for new cars and wholesale prices for used cars as 100 per cent. A loan of 90-95 per cent of dealer cost generally amounts to around 70-80 per cent of list price. 3 vf [ i Not for publication L.4.2 B 5- -3- AUTOMOBILE INSTALMENT LOANS AT COMMERCIAL BANKS MATURITIES — FEBRUARY 1965 AND JANUARY 1965 (Percentage distribution of contracts) Maturities Total Feb. Jan. Purchased paper Feb. Jan. Direct 1,Dans Feb. Jan. New cars 24 months or less 25-30 months 31-36 months Over 36 months Total 21.4 5-2 72.6 0.8 23.7 5-4 70.3 0.6 100.0 100.0 12.7 11.1 33-7 42.5 13.6 11.2 32.9 100.0 100.0 16.1 4.3 79-1 0.5 18.9 4.5 75.8 0.8 32.1 7.2 59.4 1.3 33.4 7-2 59.1 0.3 100.0 100.0 100.0 100.0 10.1 9.4 31.1 49.4 19.3 14.0 38.5 28.2 14.5 36.3 28.7 100.0 100.0 100.0 100.0 Used cars l/ 12 months or less 13-18 months 19-24 months Over 24 months , Total 9.5 9.6 31.3 49.6 20.5 1/ In this report figures are predominately for late model used cars but include data from a few banks for all used cars. NOTE: Distributions are based on tabulations of data from 114 banks for February and January and are not intended to be estimates for all commercial banks. In February reports covered about 38,000 contracts on new cars, 25,000 purchased and 13,000 direct and 28,000 contracts on used cars, 19,000 purchased and 9,000 direct. Data are not comparable with previous releases since composition of the group of banks changes from month to month. For distribution according to maturities and contract balances as a percentage of dealer cost see following pages. Hot for publication L.4.2 -4DEALER COST RATIOS AND MATURITIES ON AUTOMOBILE INSTALMENT LOAIfS FEBRUARY 1965 AND JANUARY 1965 NEW CARS (Percentage distribution of contracts) Contract balance as percentage of dealer cost 1/ Maturities 24 months 25-30 j 31-36 j Over 36 | Total less months 1 months I months j Feb. I Jan. i Feb. | Jan. j Feb. j Jan. | Feb. , Jan. j Feb. PURCHASED PAPER 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% Total | i i j | 9.0 110.0 2.3 j 2.7 3.2 4.0 1.0 1.0 0.4 0.6 15.9 | 1.6 j 1.0 0.9 1 0.3 j 0.3 1 18.3 j 4.0i 1.6 15.8 1.0 :14.7 0.9 27.1 0.2 14.2 0.2 7.8 115.6 j 15.2 25.4 12.9 8.1 0.2 3-9 79.6 77.2 0.4 0.5 0.2 0.1 0.1 0.1 0.1 0.2 0.1 0.1 0.1 0.1 * 0.1 0.1 0.2 0.1 * 26.5 1 27.3 18.0 | 19.0 31.5 | 30.5 15.5 14.3 8.5 8.9 100.0 100.0 DIRECT LOANS 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% Total j19.6 5.2 7.1 1.2 - M j18.5 | 5.3 | 6.8 | 1.6 j 0.6 , 3.8 3.1 j19.2 19.6 , 1.3 1.2 10.9 10.7 . 2.6 3.0 17.8 18.5 0.7 0.6 6.0 6.0 1 0.3 0.4 | 3.2 3.7 33.6 |32.8 | 8.6 j 8.3 57.1 58.4 ~ 0.6 | 0.5 42.8 17.5 27.6 7.9 4.2 | 41.3 17.2 28.5 8.3 4.7 100.0 |100.0 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% Total 100.0 100.0 V Contract balance excludes finance and insurance charges. Less than one-tenth of one per cent. NOTE: Distributions are based on tabulations of data from 59 banks for February and January and are not intended to be estimates for all commercial banks. In February reports covered about 18,000 contracts on new cars, 14,000 purchased and 4,000 direct. Data are not comparable x;ith previous releases since composition of the group of banks changes from month to month. Details may not add to totals because of rounding. j Jan. Not for publication -5- DEALER COST RATIOS AND MATURITIES ON AUTOMOBILE INSTALMENT LOANS (continued) FEBRUARY 1965 AND JANUARY 1965 USED CARS (Percentage distribution of contracts) Contract balance-—^ as percentage of wholesale value 1/2/ Maturities 12 months Over 24 13-18 19-24 Total or less months months months Feb.| Jan. Feb.| Jan. Feb.| Jan. Feb.|Jan. Feb.| Jan. PURCHASED PAPER 80$ or less 81 $ to 90$ 91$ to 100$ 101$ to 110$ Over 110$ Total 3.7 1.4 1.3 1.0 Ail 3.7 1.2 1.5 1.2 1.9 2.4 1.7 1.1 1.9 1.8 1.1 1.0 2.5 9.3 9.3 9.0 8.7 5-2 6.4 6.6 4.1 5.8 6.5 5.5 8.2 5.1 7.1 7.9 12.1 12.0 4.8 8.6 8.9 14.9 14.9 -2 16.6 17.6 21.9 14.8 29.1 18.0 14.6 23.2 15.8 28.4 32.2 32.7 49.5 49.3 100.0 100.0 LOANS DIRECT : 80$ or less 81$ to 90$ 91$ to 100$ 101$ to 110$ Over 110$ 11.1 11.6 2.4 1.8 4.1 4.3 1.5 1.3 2.0 _ L 8 Total 21.1 20.8 80$ or less 81$ to 90$ "91$ to 100$ 101$ to 110$ Over 110$ 5.8 1.7 2.1 1.2 6.1 1.4 2.4 1.2 _ M 6.7 7.7 14.5 13.3 6.4 1.9 2.4 6.7 3.5 3-3 10.0 11.1 1.1 1.2 3.3 3.7 1.7 2.2 5.8 _ M 14.9 16.9 40.3 7-7 3.9 5.9 2.8 6.8 3.8 6.2 3.2 3.5 40.0 39.4 14.8 14.4 23.5 24.9 8.8 9.5 12.9 11.9 38.8 23.7 23.5 100.0 100.0 TOTAL Total 12.7 12.8 3.3 1.7 2.4 1.1 2.2 4.0 1-5 2.2 1.1 -hi 7.9 6.5 7-6 3.9 10.7 11.2 34.5 6.3 6.9 7.9 6.1 6.9 5.5 8.9 10.3 10.2 7-0 7-2 4.5 7.8 11.6 11.4 23.3 16.8 22.4 13.1 24.4 34.6 42.1 41.8 100.0 100.0 1/ Contract balance excludes finance and insurance charges. 2/ Wholesale value represents "average wholesale," "as is," or "buying value" as indicated by used car guides. NOTE: Distributions are based on tabulation of data from 56 banks for February and January and are not intended to be estimates for all commercial banks. February reports covered about 13,000 contracts on used cars, 9*000 purchased and 4,000 direct. Data are not comparable with previous releases since composition of the group of banks changes from month to month. Details may not add to totals because of rounding. 24.5 14.5 23.7 13-9 2?.4
@FedFRASER