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__ LAfjCbt&A , Not for -publication BOARD OF GOVERNORS OP THE FEDERAL RESERVE SYSTEM August 12, I965 L.4.2 DECONTROLLED AFTER SIX MONTHS DIRECT AUTO LOANS BY COMMERCIAL BANKS June 1965 May 1965 Three months ending June 1965 I 1964 NEW CAR CONTRACTS Per cent of contracts written for: Under 36 months 36 months Over 36 months 32 »9 66,6 0.5 35.3 64.4 0.3 34,9 64.8 0.3 38,6 61.2 94 93 94 94 34.9 38.6 35.3 0.2 Contracts written for 36 months: Most frequent loan/value ratio l/ Per cent of contracts with ratios above 94 per cent 34.6 USED CAR CONTRACTS Per cent of contracts written for: Under 19 months 19-24 months 25-36 months 32.7 38.5 28.8 32.0 38.4 29.6 32.3 37.9 29.8 34.8 39.9 25.3 Contracts written for 24 months or less: Most frequent loan/value ratio l/ Per cent of contracts with ratios above 93 per cent 93 93 94 94 36.8 37.8 39.2 41.8 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 Not for publication L.4.2 -2- DEALER AUTO LOANS BY COMMERCIAL BANKS (PURCHASED PAPER) June 1965 May 1965 Three months ending June 1965 I 193T NEW CAR CONTRACTS Per cent of contracts written for: Under 36 months 36 months Over 36 months 18.4 80.8 0.8 19.3 80.1 0.6 19.4 79-9 0.7 20.1 79.1 0.8 Contracts written for 36 months: Most frequent loan/value ratio Per cent of contracts with ratios above 95 per cent 95 94 95 95 43.6 41.6 43.4 42.8 USED CAR CONTRACTS Per cent of contracts written for: Under 19 months 19-24 months 25-36 months 18.6 20.8 19•2 32.2 48.6 31.0 18.8 31.2 50.0 34.7 44.5 95 95 96 97 50.0 50.0 55,3 54.7 50.4 Contracts written for 24 months or less: Median loan/value ratio Per cent of contracts with ratios above 95 per cent Not for publication L.4.2 -3- AUTOMOBILE INSTALMENT LOANS AT COMMERCIAL BANKS MATURITIES — JUNE 19 65 AND MAY 19 65 (Percentage distribution of contracts) Total Maturities Purchased pa-per May June Direct loans May June June May 18.7 4.2 76.4 19.8 4.7 75.0 _0.£ 14.8 3.6 80,8 0.8 15.3 4.0 80.1 0.6 27.3 5.6 66.6 29.1 6.2 64.4 100.0 100.0 100.0 100.0 100.0 100.0 12,5 11,0 34.2 42.3 12.0 10.8 33*4 JtM 9.4 9.8 32.2 48.6 9-5 9.1 31.0 50.4 19.0 13.7 38.5 28.8 17.5 14.5 38.4 100.0 100.0 100.0 100.0 100.0 100.0 New cars 24 months or less 25-30 months 31-36 months Over 36 months Total Used cars l/ 12 months or less 13-18 months 19-24 months Over 24 months Total 1/ In this report figures are predominately for late model useeI cars but include data from a few banks for all used cars. ITCTS: Distributions are based on tabulations of data from 117 banks for June and May and are not intended to be estimates for all commercial banks. In June, reports covered about 55>000 contracts on new cars, 38*000 purchased and 17,000 direct and 38,000 contracts on used cars, 26,000 purchased and 12,000 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. I Not for publication \ L.4.2 -4DEALER COST RATIOS AND MATURITIES ON AUTOMOBILE INSTALMENT LOANS j JUNE 1965 AND MAY 1965 NEW CARS (Percentage distribution of contracts) 1 4 Contract balance as percentage of dealer cost ij 24 months 25-30 months or less May May June May % 1 1 $Ofo or less 81$ to 90io 91% to 100% 101% to 110% Over 110% Total 9-0 1.4 2.0 0.7 2.7 1.0 1.0 0.4 0,5 _0o2 8.0 1.9 3.0 1.0 0,5 14.3 15.1 1.6 0.9 1.0 0.3 _0,_2 3.6 j1 5.9 Maturities 31-36 months June 1 May Over 36 Total months June 1 May June 1 May PURCHASED PAPER 15.? 16.7 0.1 16.4 17,0 27.7 27.0 0.1 14,1 13.2 6.9 7.6 0.1 * 0.1 25.3 19.1 31.8 15.5 27.3 19.9 30.7 14.5 - J A 0.3 0.2 100.0 100.0 22.9 21.2 12.6 12.6 18.6 18.4 7.3 7.5 4.0 3.8 0.2 0.1 0.1 0.1 * 65.6 63.4 0.4 0.3 100.0 100.0 17.7 16.1 25.1 11,9 6.2 0.1 0.1 0.1 0.1 0.1 78.3 76.9 0.3 0.2 100.0 100.0 81.7 80.8 DIRECT LOANS j 4 i 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% Total 16.8 17.2 4.7 5.4 4.3 4.9 1.0 1.6 0.6 0.4 3.1 1.1 1.5 0.5 0.3 3.2 1.4 1.6 0.7 0.1 27.4 29.4 6.6 6.9 1 * 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% Total 9.9 10.8 2.5 2.7 3-1 3.3 1.0 1.1 0.5 17.1 18.2 1.8 0.8 1.1 0.4 0.2 1.9 1.0 1.1 0.4 0.2 4.2 4.6 17.4 15.6 25.8 12.7 6.8 29.1 30.5 18.9 _19.8 30.2 29.5 14.2 13.4 7.6 _ M V Contract balanc;e exc.Ludes jfinance and insurance charges. * Less than one-tenth of one per cent. 5 ' 1 41.6 19.5 24.9 9.6 TOTAL 1 1 0.1 * 43.0 I8.5 24.4 9.2 4.9 NOTE: Distributions are based on tabulations of data from 65 banks for June and May and are not intended to be estimates for all commercial banks. In June reports covered about 28,000 contracts on new cars, 22,000 purchased and 6,000 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. 1 3 % Not, for publication L.4. 2 DEALER COST RATIOS AND MATURITIES ON AUTOMOBILE INSTALMENT LOANS (continued) JUNE 1965 AND MA? 1965 USED CARS (Percentage distribution of contracts) vuiivj. <av u uaxaxiuc as percentage of wholesale value 1/2/ Maturities 12 months 13-18 19-24 or less months months June I May June] May 1 1 - Over 24 Total months June I May June I May PURCHASED PAPER 80# or less 81# to 90# 91# to 100# 101# to 110# Over 110# Total 3.2 1.2 1.7 1.0 1.8 3.8 1.0 1.5 1.0 1.8 2*1 1.4 2.1 1.0 2.7 2.3 1.4 1.4 1.1 8.8 9.1 9.3 8.6 32.2 4.9 5.1 8.2 4.4 5.3 5.9 5.9 16.0 17.3 5-7 7.8 9-0 15.5 17.1 6.5 11.6 11.0 23.5 20.4 4.4 7.9 8.7 14.3 15.2 16.6 16.6 30.6 30.0 31.2 49.7 51.1 100.0 100.0 DIRECT LOANS 80# or less 81# to 90# 91# to 100# 101# to 110# Over 110# Total 12.0 2.8 3-6 1.6 2.2 9.9 2.0 3.0 1.3 1.8 22.1 18.0 6.2 2.6 3.8 1.5 7-0 13.4 13.2 2.8 7-0 6.9 3.7 8.5 10.3 1.3 4.4 4.1 _2^3 - h i 6.7 3.9 5.2 3.0 4.1 15.9 17.0 39.0 40.3 22.9 7.9 4.0 5.6 3.1 4.1 38.2 16.3 21.1 10.5 |1?.? 38.0 15.6 22.5 9.9 14.0 24.6 100.0 100.0 TOTAL 80# or less 81# to 90io 91# to 100# 101# to 110# Over 110# Total 5-4 1.6 2.2 1.1 5-3 1.3 1.9 1.1 3.1 1.7 2.5 1.1 JL1 12.2 11.4 3-5 1.8 2.0 1.2 6.1 6.5 7.3 6.0 6.8 7-7 8.3 7.5 9.9 9.5 6.6 7.2 4.4 4.3 8.6 _ M 13^4 13.3 7.0 5-5 11.0 10.8 33.8 53.5 21.6 15-7 22.9 13.3 26.3 42.8 44.1 100.0 100.0 2/ 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 60 banks for June and May and are not intended to be estimates for all commercial banks. June reports covered about 19,000 contracts on used cars, 14,000 purchased and 5*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. 22.6 16.7 20.9 13.8 2^.8
@FedFRASER