The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
*7 Not for publication BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM L. 4. 2 March 17, 1965 DECONTROLLED AFTER SIX MONTHS BY COMMERCIAL BANKS MAR 1 9 1965 December 1964 Three months ending January 1965 1964 NEW CAR CONTRACTS Per cent of contracts written for: Under 36 months 36 months Over 36 months 40.4 59.3 0.3 40.3 59.1 0.6 40.4 59.2 0.4 44.6 55.1 0.3 94 94 94 94 37.0 33.9 36.2 35.6 Contracts written for 36 months: Most frequent loan/value ratio 1/ Per cent of contracts with ratios above 94 per cent USED CAR CONTRACTS Per cent of contracts written for: Under 19 months 19-24 months 25-36 months 34.9 36.4 28. 7 35.5 37.9 26.6 35.1 37.9 27.0 38.7 38.1 23.1 94 94 94 94 34. 2 36.0 34.7 36.3 Contracts written for 24 months or less: Most frequent loan/value ratio 1/ 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. 3/1 Hot for publication L.4.2 -2- DEALER AUTO LOANS BY COMMERCIAL BANKS (PURCHASED PAPER) January 1965 December 1964 Three months ending January 1965 1964 NEW CAR CONTRACTS Per cent of contracts written for: Under 36 months 36 months Over 36 months 23.1 76.1 0.8 22.9 76.2 0.9 22.5 76.5 1.0 23.5 75.7 0.8 Contracts written for 36 months: Most frequent loan/value ratio If Per cent of contracts with ratios above 94 per cent 95 95 95 95 43.8 44.2 44.1 43.5 USED CAR CONTRACTS Per cent of contracts written for: Under 19 months 19-24 months 25-36 months 19.6 31.6 48.8 21.3 32.5 46.2 20.8 32.8 46.4 22.2 34.2 43.6 Contracts written for 24 months or less: Host frequent loan/value ratio If Per cent of contracts with ratios above 95 per cent 95 95 95 95 51.5 53.3 52.6 51.9 If 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 Not for publication L. 4.2 -3- AUTOMOBILE INSTALMENT LOANS AT COMMERCIAL BANKS MATURITIES — JANUARY 1965 AND DECEMBER 1964 (Percentage distribution of contracts) Maturities Total Dec. Jan. Purchased paper Dec. Jan. ! I Direct loans Dec. New cars 24 months or less 25-30 months 31-36 months Over 36 months Total 23.5 5.3 70.6 0.6 1 100.0 23.6 5.2 70.4 0.8 18.6 4.5 76.1 0.8 18.6 4.3 76.2 0.9 100.0 100.0 100.0 Total 33.3 7.0, 59.1 100.0 100.0 20.4 14.5 36.4 28.7 21.1 14.4 37.9 26.6 1 Used cars 1./ 12 months or less 13-18 months 19-24 months Over 24 months 33.3 7.1 59.3 13.6 | 11.2 j 33.3 41.9 i |100.0 , i 14.3 11.9 34.3 39.5 10.1 9.5 31.6 48.8 | 100.0 100.0 j 10.8 10.5 32.5 46.2 100.0 | 100.0 j 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. NOTE: Distributions are based on tabulations of data from 116 banks for January and December and are not intended to be estimates for all commercial banks. In January, reports covered about 36,000 contracts on nev cars, 24,000 purchased and 12,000 direct and 27,000 contracts on used cars, 18,000 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. Not for publication L.4.2 -4DEALER COST RATIOS AND MATURITIES Oil AUTOMOBILE INSTALMENT LOANS JANUARY 1965 AMD DECEMBER 1964 (Percentage distribution of contracts) Contract balance as percentage of dealer cost 1/ s lii % II 91% to 1007. 1017. to 1107. Over 1107. Total Maturities Over 36 24 months 25-30 31-36 or less months months months Jan. i Dec, j Jan. | Dec. an. I Dec" Jan. I Dec. Total Jan. | Dae PURCHASED PAPER 4.3 1.3 0.6 18.2 u 1.5 1.0 0.9 0.3 0.2 1.6 C.8 1.0 0.4 0.2 18.3 3.9 3.9 4.4 1.6 0. 6 8:1 26.3 13.1 7.6 26.8 13.3 7.4 0.2 0.1 0.2 26.1 19.0 31.8 14.7 8.4 25.4 18.7 32.5 15.3 8.2 77.3 77.3 0.5 0.4 100.0 100.0 40.4 16.7 29.1 9.0 4.8 41.7 20.0 26.5 8. 7 3.2 m DIRECT LOANS 807. or less 817. to 907. 917. to 1007. 1017. to 1107. Over 1107. 18.1 5.1 6.8 1.7 0.7 18.4 6.3 6.1 1.6 0.3 3.0 1.1 2.9 0.5 0.4 2.9 2.0 2.2 0.6 0.2 19.1 20.0 10.4 11.6 19.2 13.2 6. 6 6.5 2.6 3.7 0.2 | 0.4 0.1 j 0.1 0.1 0.1 0.1 Total 32.5 32.6 8.0 7.9 59.0 58.9 0.5 0.5 807. or less 817. to 907. 917. to 1007. 1017. to 1107. Over 1107. 11.6 I 3.3 j 4.9 j 1.4 | 0.6 1.9 1.0 1.4 0.3 0.3 1.9 1.1 1.4 0.4 0.2 16.1 14.0 24.6 11.4 6.6 15.7 14.6 24.7 11.6 6.2 0.1 0.1 0.2 0.1 * 0.2 0.1 0.2 0.1 11.8 3.2 4.8 1.6 0.5 |21.8 j 21.9 4.9 5.0 72.8 72.7 0.5 i Contract balance excludes finance and insurance charges. Lass than one-tenth of one per cent. x Total V * * 0.5 100.0 |100.0 29.7 18.4 31.1 13. 3 7.5 100.0 29.5 19.0 31.0 13.6 6.9 100.0 NOTE: Distributions are based on tabulations of data from 62 banks for January and December and are not intended to be estimates for all commercial banks. In January reports covered about 18,000 contracts on new cars, 13,000 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. 3zi Not for publication 1^.4'. 2 -5- DEALER COST RAPIOS LW) M U R I T I 2 S ON AUTOMOBILE INSTALMENT LOANS (continued) JANUARY 1965 AND DECEMBER 1964 USED CARS (Percentage distribution of contracts) Contract balance as percentage of wholesale value 1/2/ 12 months or less Jan. Dec. Maturities 19-24 13-18 months months Jan. 1 'Dec. Jan. 1 Dec. Over 24 months Jan. iDec. Total Jan. IDec. PURCHASED PAPER 80# or less 81# to 90# 91# to 100<.b 101# to 110# Over 110# Total 3.6 2.4 1.5 2.0 1.3 M 5.4 5.3 8.5 5.0 M 4.9 5.1 8.7 4.8 10.4 6.3 7.0 12.1 8.7 14.4 10.4 . 8.8 10.1 33.2 33.8 48.5 1*2 1-7 1.2 hi 9.3 4.0 1-3 1.9 1.0 2.2 2.3 1.3 1.9 1.0 Li 5.1 6.7 11.9 7-8 — 17.6 14.7 24.2 16.0 27.5 16.4 14.6 24.4 14.9 29jJ 45.6 100.0 100.0 „ DIRECT LOANS 80# or less 81# to 90# 91# to 100# 101# to 110# Over 110# 11.5 1.8 4.3 1.4 1.8 12.7 2.0 3.8 1.8 1.8 Total 20.7 22.2 80# or less 81# to 90# 91# to 100# 101# to 110# Over 110# 6.0 1.4 2.5 1.2 i Z 6.6 1.5 2.5 1.2 2.1 7.7 2.4 3.4 1.3 2.3 6.6 2.0 3-7 1.9 2.3 17.0 16.5 6.6 3.7 6.3 3.2 13.3 1*13.0 6.8 6.3 11.3 10.2 4.6 3.8 4.3 5.2 Ail 39.0 23.3 39.8 6.5 , 59.1 3.6 14.2 5-6 25.5 2.7 9.7 5.2 11.8 58.8 14.4 23.4 11.0 12.5 21.5 100.0 100.0 TOTAL Total 12.8 ;13.9 4.0 1.6 2.3 1.1 2.3 3.6 1.6 2.5 1.5 2.8 7.8 5.6 9.4 4.7 7.6 11.3 12.0 35.0 6.4 5.5 7.3 6.0 . 5.8 5.6 9-1 10.3 10.0 4.8 6.5 7.0 8.9 11.1 LO.? 35-6 40.9 24.1 14.6 24.5 14.1 22.8 25.0 14.6 24.1 15.7 24.6 58.5 100.0 100.0 \J 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 58 banks for January and December and are not intended to be estimates for all commercial banks. January 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.
@FedFRASER