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337 ! 1:11965 I Ot :'.i'-'KMOND Hot lor publication BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM L.4.2 July 14, 1965 DECONTROLLED AFTER SIX months DIRECT AUTO LOANS BY COMMERCIAL BANKS- May 1965 April 1965 Three months ending May 196V 1965 NEW CAR CONTRACTS Per cent of contracts written for: Under 36 months 36 months Over 36 months 35*1 64.6 0.3 36.7 63.1 0.2 37.1 62.6 0.3 40.1 59.7 0.2 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 37*3 38.5 36.6 32.2 USED CAR CONTRACTS Per cent of contracts written for: Under 19 months 19-24 months 25-36 months 32.2 37*7 30.1 32.7 37.7 29.6 32.6 37.6 29.8 3.5-1 39.6 25.3 94 94 94 94 38*7 38.0 36.7 36.9 Contracts written for 24 months or less: Most frequent loan/value ratio l/ Per cent of contracts with ratios above 94 per cent 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. 33g Hot for publication L.ii.2 -2— DEALER AUTO LOANS BY COMMERCIAL BANKS (PURCHASED PAPER) May 1965 April 1965 Three months ending Kay 1965 1 196a NEW CAR CONTRACTS Per cent of contracts written for: Under 36 months 36 months Over 36 months 19*1* 80.0 0*6 20.6 78.8 0*6 19.9 79.5 0*6 20.5 78.5 1.0 95 95 95 95 U3.2 h3»6 Ul.U U2.6 Contracts written for 36 months: Host frequent loan/value ratio Per cent of contracts withratios above 95 per cent USED CAR CONTRACTS Percent of contracts written for: Under 19 months 19-2U months 25-36 months 18*6 30.7 50.7 18.5 30.6 50.9 l8»5 30-7 50.8 20.9 3k.l Wi.7 97 96 96 97 50.0 U6.8 U6.6 50.0 Contracts written for 2h months or less: Median loan/value ratio Per cent of contracts with ratios above 97 per cent 351 Not for publication L.h.2 -3- AUTOMOBILE INSTAMNT LOANS AT C^TERCIAL BANKS MATURITIES — liAY 1965 AND APRIL 1965 (Percentage distribution of contracts) Total Maturities May April Purchased paner April May New cars 2h months or less 2^-30 months 31-36 months Over 36 months Total 19.6 ii.8 72*1 20.8 k.9 16*6 73.8 lSoii U.O 80.0 100.0 100.0 100.0 12.1 10.8 32.9 12.5 10.6 32.9 JiM 9.5 9.1 30.7 100.0 100.0 100.0 May Direct loans . . April i 28.7 6.U 6I4..6 29.9 6.8 63.1 0,2 100.0 100.0 100.0 9*3 9.2 30.6 ?0.9 17.6 1U.6 37.7 19.2 13.5 37.7 29,6 h.O 78.8 0*6 Used cars l/ 12 months or less 13-18 months 19p2U months Over 2h months Total J&l 100.0 , 100.0 100.0 1/ In this report figures are predominately for late model used cars but include data from a few banks for all used cars# NCTE: Distributions are based on tabulations of data from 111 banks for May and April and are not intended to be estimates for all commercial banks. In May, reports covered about U9,000 contracts on new cars, 3b,000 purchased and 1$,000 direct and 3*1,000 contracts on used cars, 23*000 purchased and 11,000 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. Not for publication DEALER COST RATIOS AND MATURITIES ON AUTOMOBILE INSTALMENT LOANS MAY 1965 AND APRIL 1965 NEW CARS (Percentage distribution of contracts) Contract balance as percentage of dealer cost 1/ 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% Total Maturities 24 months 25-30 31-36 Over 36 months or less months months . May 1 Apr.May 1 Apr. May 1 Apr. May I Apr. PURCHASED PAPER 9.2 9.3 1.6 1.5 16.7 16.6 0.1 0.1 * 0.1 1.8 2.0 0.8 0.8 15.5 14.6 2.8 3.2 1.0 1.0 27.5 27.5 0.1 0.1 * * 1.0 i.o 0.4 0.4 13.8 14.0 * * 0.5 0.2 0.2 7.0 7.2 M 15.2 16.0 3.9 3.8 80.6 79.8 Total May 1 Apr. 27.5 18.1 31.4 15.1 7.9 27.6 17.4 31.8 15.5 7.7 0.2 0.3 100.0 100.0 DIRECT LOANS 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% 17.4 17.0 3.5 3.2 3.0 1.4 5.1 5.2 1.9 1.9 1.6 0.8 0.5 0.6 M 3.8 20.0 19.8 1.1 9.8 9.4 2.4 20.4 20.9 0.6 8.9 9.8 0.3 4.7 4.5 0.1 0.1 0.1 0.1 0.1 Total 28.0 27.4 7.8 8.0 63.8 64.4 0.3 0.2 100.0 100.0 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% 10.8 10.9 2.0 2.0 2.2 1.0 3.2 3.6 1.2 1.2 1.1 0.4 0.5 0.5 CL2 2.0 0.8 1.2 0.4 0.2 Total 1.7.7 18.3 4.7 4.7 77.3 76.8 * * * * * TOTAL 17.3 17. 3 0.1 14.4 13.6 26.1 26.2 0.1 12.8 13.2 6.7 6.5 0.2 0.1 0.1 0.1 * * 41.0 14.5 27.5 11.6 5.4 30.1 17.4 30.7 14.4 7.4 40.7 13.5 28.5 11.9 5.3 30.2 16.6 31.2 14.8 7.2 0.3 100.6 100.0 1/ Contract balance excludes finance and insurance charges. * Less than one-tenth of one per cent. NOTE; Distributions are based on tabulations of data from 57 banks for May and April and are not intended to be estimates for all commercial banks. In May reports covered about 23,000 contracts on new cars, 18,000 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. 3M| Not for publication -5- DEALER COST RATIOS AND MATURITIES ON AUTOMOBILE INSTALMENT LOANS (continued) MAY 1965 AND APRIL 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 less months months months May 1 Apri. May | Apri. May lApri. May lApri May lApri. PURCHASED PAPER 80% or less 81# to 90% 91% to 100% 101% to 110% Over 110% Total 2.2 1.2 1.8 1.1 2.4 5-1 6.0 6.7 5.1 8.6 8.6 6.9 11.2 12.4 4.5 8.9 8.9 8.9 17.0 15.7 3.8 1.0 1.5 1.0 1.9 3.3 1.2 1.6 0.7 1.7 2.4 1.3 1.4 1.1 2.4 9.2 8.5 8.5 8.6 30.5 30.5 51.7 52.3 100.0 100.0 5-3 4.8 11 9-5 17.5 15.6 20.6 15.5 30.8 17.3 16.1 22.6 15.2 28.7 DIRECT LOANS 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% 6.8 2.9 3.9 1.4 - M 9.5 2.1 3.1 1.5 - M 11.0 2.0 3.4 1.9 Total 18.3 19.7 17.5 15.5- 38.7 37.9 25.5 26.9 100.0 100.0 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% 5-2 1.2 1*9 1.1 1.9 Total 11.4 5.3 1.4 2,0 1.0 All 3.5 1.7 2,0 1.2 2.4 5.9 10.9 11.5 7.7 7.1 2.2 6.4 4.1 5.3 6.5 3-7 10.6 10.2 1.3 4.5 4.2 I'.l 3-3 6.3 - M J£t5 - M 24 3.1 1.5 2.3 1.1 34.9 15.5 23.5 10.8 15,3 35.5 15.2 23.7 10.6 15.0 TOTAL 6.6 I 6.8 6.4 6.8 21.7 22.0 5-2 - 5.3 7.5 7-7 15.6 15.9 7.5 7.7 9'8 10.8 21,2 22.8 4.5 4.4 7-5 7.4 14.3 14.68.7 8.2 1%9 12.9 26.9 25.1 11.4 10.8 10.4 32.5 32.4 45.0 45.6 100.0 100.0 1/ Contract balance excludes finance and insurance charges. 2I 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 55 banks for May and April and are not intended to be estimates for all commercial banks. May reports covered about 17,000 contracts on used cars, 13,000 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#
@FedFRASER