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O f f o i 10 ( I * OXi-TnV<?V BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM DIVISION OF RESEARCH AND STATISTICS SilCONTROLLED AFTER SIX MONTHS TO: FROM: — January 14, 1965 System users of monthly L.4.2 release on terms of auto credit Harlow D. Osborne SUBJECT: Proposed new format for page 1 of L.4.2 release. This version reflects* the comments and suggestions that have been received on the draft format x?e sent you last month. Further comments will be welcome. Hot for publication BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM L. 4.2 January 14 , 1965 DECONTROLLED AFTER SIX MONTHS DIRECT AUTO LOANS BY COMMERCIAL BANKS 1964 Nov. 1 Oct. Three months ending November 1964 I 1963 NEW CAR CONTRACTS Per cent of contracts written for: Under 36 months 36 months Over 36 months 40.4 59.4 0.2 60.2 94 94 37.2 39.6 39.5 30.9 0.3 0.3 60. G 44.0 55.7 0.3 Contracts written for 36 months: Most frequent loan/value ratio 1/ Per cent of contracts with ratios above 94 per cent 93 94 .6 34.5 USED CAR CONTRACTS Per cent of contracts written for: Under 19 months 19-24 months 25-36 months 35.0 38.1 26.1 - 34.8 39.1 26.1 35.4 39.1 25.5 38.5 39.0 22.5 Contracts written for 24 months or less: Most frequent loan/value ratio 1/ Per cent of contracts with ratios above 92 per cent 92 94 94 94 37.3 42.2 40.5 41.2 V 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 • Not for publication L. 4. 2 -2- DEALER AUTO LOANS BY COMMERCIAL BANKS (PURCHASED PAPER) 1964 Nov. | Oct. Three months ending November 1964 i 1963 NEW CAR CONTRACTS Per cent of contracts written for: Under 36 months 36 months Over 36 months 21.4 77.5 0.0 20. G 70.5 0.7 20.3 79.0 0.7 22.0 77.3 0. 7 Contracts written for 36 months: Most frequent loan/value ratio 1/ Per cent of contracts with ratios above 95 per cent 95 95 95 94 44.9 44.1 44.3 42.1 USED CAR CONTRACTS Per cent of contracts written for: Under 19 months 19-24 months 25-36 months 21.4 34.4 44.2 22.4 33.6 44.0 22.1 34.0 43.9 23.5 35.4 41.1 Contracts written for 24 months or less: Host frequent loan/value ratio 1/ Per cent of contracts with ratios above 95 per cent 95 95 96 96 54.5 51.0 53. G 54.5 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-GO per cent of list price. Not for publication BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM L. 4.2 January 14 , 1965 AUTOMOBILE INSTALMENT LOANS AT COMMERCIAL BANKS MATURITIES — NOVEMBER 1964 AND OCTOBER 1964 (Percentage distribution of contracts) Total Maturities Oct. I Nov. Purchased paper Oct. Nov. Direct loans Nov. Oct. New cars 21.9 5.1 72.4 0.6 24 months or less 25-30 months 31-36 months 4— Over 36 months Total | I 100.0 20.6 5.2 73.6 0.6 17.1 4.3 77.8 0.8 16.7 4.1 78.5 0.7 33.3 7.1 59.4 0.2 31.2 8.3 60.2 0-3 100.0 100.0 100.0 100.0 100.0 14.1 12.4 35.5 38.0 10.3 11.1 34.4 44.2 21.4 14.4 38.1 26.1 19.7 15.1 39.1 26.1 100.0 100.0 100.0 100.0 Used cars 1/ 12 months or less 13-18 months 19-24 months Over 24 months Total 14.0 12.2 35.6 38.2 100.0 i 11.4 j 11.0 , 33.6 44.0 100.0 1/ 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 115 banks for November and October and are not intended to be estimates for all commercial banks. In November, reports covered about 35,000 contracts on new cars, 25,000 purchased and 10,000 direct and 26,000 contracts on used cars, 17,000 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. 3. Hot for publication DEALER COST RATIOS AMD MATURITIES ON. AUTOMOBILE INSTALMENT LOANS NOVEMBER 1964 AND OCTOBER 1964 NEW CARS (Percentage distribution of contracts) Contract balance as percentage of dealer cost 1/ Maturities 24 months 25-30 31-36 Over 36 | Total or less i months j months months | Oct. Nov. Nov. 1 Oct. 1 Nov.1 Oct. i Nov. i Oct. Nov. i Oct. i PURCHASED PAPER 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% 9.1 2. 3 3.4 1.5 _0^3 9.4 2.5 3.1 1.5 0.4 1.5 0.9 0.9 0.5 0.2 1.8 j 14.5 0.6 15.5 0.9 26.9 3.5 15.4 0.1 [ 6.6 Total 16.5 16. C 4.1 4.1 | 79.0 78. 7 80% or less 81% to 90% 91% to 100% 131% to 110% Over 110% 19.1 6.1 6.8 1.2 0.5 18.4 j 2.5i 5.2 : 1.8 5.9 2.4 1.5 J. 3 0.6 j_2^3 3.0 1.5 3.3 0.4 0.4 17.2 11.5 20.4 5.7 3.9 17.6 9.9 20.9 6.8 4.2 0.2 0.1 0.2 33.7 31.6 | 7.3 8.6 58.7 59.4 14.0 16.2 27.5 14.6 6. 3 0.1 0.1 0.2 0.1 0.1 0.2 1— 0.4 | 0.4 25.2 13. C: 31.4 17.5 7.1 25.3 19.4 31.8 16.6 6.9 100.0 100.0 0.2 * * 39.0 19.4 29.6 7.2 4.7 39.2 16.6 30.4 8.7 5.1 0.4 0.3 100.0 100. 0 27.8 18.9 31.5 15.2 6. 6 DIRECT LOANS Total TOTAL 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% Total 11.1 3.1 4.1 1.4 0.3 11.0 1 1.7 3.0 , 1.1 3.6 1.2 1.5 ] 0.5 20.0 12.5 | 4. G 1Jhl 2.0 •J. 8 1.4 0.5 3.2 15.1 14.7 25. 5y 13. 4 6.0 14.7 15.0 26.3 13.2 5.9 0.1 0.1 0.2 0.1 0.1 0.2 28.0 19.0 31.1 15.4 6.5 5.0 74.8 75.2 0.4 3.4 100.0 103.0 1/ Contract balance does not include finance and insurance charges * Less than one-tenth of one per cent. NOTE: Distributions are based on tabulations of data from 60 banks for November and October and are not intended to be estimates for all commercial banks. In November reports covered about 17,000 contracts on net; cars, 13,000 .urchased and 4,000 direct. Data are not comparable with previous releases since composition of the group of banks changes from month to month. may not add to totals Digitized forDetails FRASER because of rounding. Rot for publication L.4.2 3- DEALER COST RATIOS AND MATURITIES ON AUTOMOBILE INSTALMENT LOANS (continued) NOVEMBER 1964 AND OCTOBER 1964 USED CARS (Percentage distribution of contracts) Contract balance 1 12 months as per centage of or less wholesale value 1/2/ Nov. jOct. Maturities 13-18 19-24 Over 24 Total months months months Nov. | Oct. iiNov. 1 Oct. Nov. | Oct. Nov, I Oct. PURCHASED PAPER 80% or less 31% or 90% 91% to 130% 101% to 110% Over 110% Total 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% Total 3.0 1.3 2.0 1.5 1.9 4.6 1.0 2.0 1.7 1.8 9.6 i11.1 I I 1 14.5 2.7 2.9 2.1 Ail ill. 7 j 2.1 | 4.2 j 1.8 1_ L 8 24.0 j21.6 2.3II 1.5 2.8! 1.8 2."9i 2.5 | 5.0 1.9 j 5.9 2.0 10.6 6.3 1.6 2.4 9.8 11.3 j 10.4 37.7 Total 6.8 W| 2.7 1.6 | 1.7 1.9 j 1.8 4.6 6.-8 12.0 7.6 10.5 35.7 41.3 5.7 7.4 14.9 15.5 «:i 10.4 Itt l 25.1 18.8 16.2 8:5 24.0 42.7 loo. d 100.0 D IRECT LOANS 6.9 2.2 4.8 1.8 2.2 12.1 7.5 9.4 4.4 5.8 11.7 7.7 11.6 4.0 5.8 4.6 4.3 4.7 2.7 3.9 16.7 17.9 39.2 40.8 20.1 7.1 2.9 2.7 2.1 2.1 TOTAL 00% or less 81% to 90% 91% to 100% 101% to 110% Over liq% 5.9 5.9 8.4 6.1 9.4 I 3.6 n j 1.9 2.7 3.8 7.0 1.7 10.'2 5.8 8.7 JL2 !:! 5.5 8.3 3.9 . 3. 2 6.5 3.0 3.2 34.1 15.1 27.1 10.6 13.0 19.8 100.0 100.0 4.6 1 5.2 9.'9 6.2 8.6 38.2 17.4 19.6 11.2 13.7 21.3 | 23,4 96:l if: i 6.5 15.5 8.2 21.9 Itt 15.4 20.7 12.9 12.7 38.0 37.3 35.4 35.9 100.0 100.0 1 1I Contract balance does not include finance and insurance charges. 2/ Wholesale value represents "average wholesale," "as is," or "buying value" as indicated by used car guides. 13.6 |14.2 NOTE: Distributions are based on tabulation of data from 58 banks for November and October and are not intended to be estimates for all commercial banks. In November reports covered about 12,000 contracts on used cars, 9,000 purchased and 3,000 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.
@FedFRASER