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*>zn Not for publication BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM L.4.2 May 13, 1965 DECONTROLLED AFTER SIX MONTHS DIRECT AUTO LOANS BY COMMERCIAL BANKS 1 v -r March 1965 February 1965 Three months ending March 1965 1964 NEW CAR CONTRACTS Per cent of contracts written for: Under 36 months 36 months Over 36 months 39.3 60.4 0.3 39.7 59.8 0.5 39.6 59.8 0.6 42.4 57.4 0.2 93 93 94 93 30.7 30.9 38.2 38.5 Contracts written for 36 months: Most frequent loan/value ratio 1/ 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 32.7 37.4 29.9 33.5 38.2 28.3 33.6 37.4 29.0 37.2 38.6 24.2 93 94 94 94 35.6 33.7 36.2 38.8 Contracts written for 24 months or less: Most frequent loan/value ratio 1/ Per cent of contracts with ratios above 9 3 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 A loan of 90-95 per cent of dealer cost generally amounts to aroung 70-80 per cent of list price. 3Z# Not for publication L.4.2 -2- DEALER AUTO LCANS BY COMMERCIAL BAIMS (PURCHASED PAPER) March 1965 February 1965 Three months ending March 1965 I 1964 NEW CAR CONTRACTS Per cent of contracts written for: Under 36 months 36 months Over 36 months 20.2 79-2 0.6 20.5 '78.6 0.9 21.1 78.3 0.6 21.5 77.5 1.0 94 95 95 95 40.2 42.9 46.6 46,9 Contracts written for 36 months: Most frequent loan/value ratio l/ 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 18.4 30.9 50.7 19«1 31.4 49.5 19*0 31.2 49.8 21.5 33.4 45.1 N/A N/A N/A 95 50.9 52.2 52.1 54.2 Contracts written for 24 months or less: Most frequent loan/value ratio 1/ Per cent of contracts with ratios above 95 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. I Hot for publication L.4.2 -3- AUTOMOBILE INSTALMENT LOANS AT COMMERCIAL BAIilCS MATURITIES — MARCH 1965 AND FEBRUARY 1965 (Percentage distributioh of contracts) Maturities | 1 i Mar. Feb. Purchased paper Feb. Mar. 21.2 5.2 73.1 0.5 21.4 5.2 72.6 0.8 16.3 3.9 79.2 0.6 16.3 4.2 78.6 0.9 31.5 7.8 60.4 0.3 32.3 7.4 59.8 0.5 100.0 100.0 100.0 100.0 100.0 100.0 12.4 10.6 33.0 12.8 11.0 33.6 42.6 9.3 9.1 30.9 50.7 9.5 9.6 31.4 49.5 18.8 13.9 37.4 29.9 19.5 14.0 38.2 28.3 J 100.0 100.0 100.0 100.0 | 100.0 100.0 Direct loans Feb. Mar. New cars 24 months or less 25-30 months 31-36 months Over 36 months Total Used cars 1/ 12 months or less 13-18 months 19-24 months Over 24 months Total J./ 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 March, and February and are not intended to be estimates for all commercial banks. In March, reports covered about 49,000 contracts on new cars, 33,000 purchased and 16,000 direct and 36,000 contracts on used cars, 24,000 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. 330 Hot for publication L.4.2 DEALER COST RATIOS AND MATURITIES ON AUTOMOBILE INSTALMENT LOANS MARCH 1965 AND FEBRUARY 1965 NEW CARS (Percentage distribution of contracts) Contract balance as percentage of dealer cost l/ 80% or less 81$ to 90# 91 % to 100% 101 % to 110% Over 110 , Total 24 months or less Mar. Feb. 25-30 months Mar. Feb. Maturities Over 36 31-36 Total months months Mar. I Feb. I Mar. |Feb. I Mar. I Feb. 9.3 2.1 2.4 0.8 0.4 9.1 2.3 3.2 1.0 0.4 1.5 0.8 1.0 0.3 0.1 1.6 1.0 0.9 0.3 0.3 17.4 16.3 26.9 13.6 0.1 0.1 0.1 0.2 6.7 15.8 14.7 27.1 14.2 7.8 28.2 19.3 30.5 14.7 7.2 26.6 18.0 31.4 15.6 8.5 15.0 15.9 3.7 4.0 81.0 79.6 0.2 0.4 100.0 100.0 18.2 5-3 4.5 1.3 0.7 19.6 5.2 7.0 1.1 0.6 3-7 1.5 3.6 0.6 0.3 3.9 1.3 2.6 0.6 21.0 12.0 17.2 6.1 19.7 11.0 17.6 5.9 JlJ. 3.1 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 42.8 18.8 25.5 8.1 4.8 43.4 17.5 27.2 7.8 4.1 29.9 33.4 9.8 8.6 60.1 57.3 0.3 0.6 100.0 100.0 0.1 DIRECT LOANS 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% Total TOTAL 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% Total 11.2 2.8 2.9 0.9 0.4 11.6 3.0 4.1 1.0 0.5 2.0 1.0 1.6 0.4 0.2 2.1 1.0 1.3 0.4 0.3 18.2 15.4 24.8 12.0 6.1 16.8 13.8 24.8 12.2 6.6 0.1 0.2 0.1 0.1 31.5 19.2 29.4 13.3 6.7 30.6 17.9 30.4 13.7 18.3 20.1 5.1 5.2 76.4 74.3 0.2 0.4 100.0 100.0 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 61 banks for March and February and are not intended to be estimates for all commercial banks. In March 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. 33/ Not for publication L.4.2 DEALER COST RATIOS AND MATURITIES ON AUTOMOBILE INSTALMENT LOANS (continued) MARCH 1965 AND FEBRUARY 1965 (Percentage distribution of contracts) Maturities 12 months ] 1 3 - 1 8 Tj 19-24 Over 24 or less | months months months Feb. i Mar.1 Feb. 1 Mar. 1 Feb. 1 Mar. I Feb. Mar. i Feb. Mar. Contract balance as percentage of wholesale value 1/2/ PURCHASED PAPER 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% 3.4 1.5 1.5 0.8 LJ 2.2 1.5 1.7 0.9 2.3 1.9 1.6 1.9 1.1 2.5 5.3 6.1 6.9 4.3 8.7 5.2 6.4 6.6 4.2 9.8 6.5 8.5 12.4 9.1 14.6 5.8 8.1 12.2 8.7 14.8 9.1 , 9.3 8.5 8.9 31.3 32.1 51.0 49.6 100.0J 100.0 j12.6 ill. 3 2.3 , 2.4 2.9 , 4.1 | i.3; 1.5 | 1.8 - 2.0 6.8 2.3 3.5 1.4 2.2 6.8 1.9 3.5 1.1 1.7 13.0 6.8 9.4 3.8 5.1 14.6 6.7 10.0 3.2 5.7 7.9 3.9 5.8 3.3 4.0 21.0 | 21.3 | 16.1 14.9 38.0 40.1 24.9 Total 3.7 1.4 1.3 1.0 hi 17.4t| 17.61 22.4J 15.2! 27.4| 16.6 17.5 21.9 15.0 29.0 DIRECT LOANS 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% Total 1 80% or less 81% to 90% 91% to 100% 101% to 110% Over 110% 7.7 4.0 5.9 2.8 3.4 40.2 15.2 21.6 9.8 13.1 40.3 14.9 23.4 8.7 12.7 23.7 100.0 100.0 TOTAL 6.8 6.4 23.5 23.4 7.9 3.4 3.3 7.4 j 5.9 6.3 6.4 6.9 17.0 16.8 1.7 7.3 1.7 1.7 7.6 7.6 10.6 10.4 22.2 22.4 2.1 2.2 2.3 4.2 7.5 , 1.2 3.9 1.1 1.1 7.0 13.7 13.2 8.6 11.8 11.6 23.6 24.3 2.2 2.2 7.7 | 1 Total j12.8 10.5 10.6 33.1 34.4 44.0 42.2 100.0 100.0 i 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. 5.9 1.7 i 1.9 , 1.0 |J^JB 1 j12.3 NOTE: Distributions are based on tabulation of data from 58 banks for March and February and are not intended to be estimates for all commercial banks. March reports covered about 17,000 contracts on used cars, 13,000 purchased and 4,000 direct. Data are not comparable v?ith previous releases since composition of the group of banks changes from month to month. Details may not add to totals because of rounding.
@FedFRASER