Full text of L.4.2 Auto Loans by Commercial Banks : Maturities and Dealer Cost Ratios : November 15, 1965

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Not for publication
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
L.4.2

CTsoclmo,
LIBRARY

I

I

-

November 15, 1965.

DIRECT AUTO LOANS BY COMMERCIAL BANKS

GS5
!,Lcoi.Ti«am; A r o s p months

September
1965

August
1965

Three months
ending September
1965 1 1964

NEW CAR CONTRACTS
Per cent of contracts written for:
Under 36 months
36 months
Over 36 months

32.8
66.9
0.3

32.8
66.8
0.4

32.8
66.8
0.4

35.9
63.8
0.3

94

94

94

33.4

33.7

33.6

Contracts written for 36 months;
Most frequent loan/value ratio 1/ 95
Per cent of contracts with ratios
36.2
above 95 per cent

USED CAR CONTRACTS
Per cent of contracts written for:
Under 19 months
19-24 months
25-'36 months

32.2
39.1
28. 7

31.3
39.6
29.1

32.4
39.0
28.6

35.9
39.9
24.2

94

94

94

36.0

36.2

35.3

Contracts written for 24 months or less:
Most frequent loan/value ratio If 95
Per cent of contracts with ratios
above 95 per cent
40.9

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.




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L.4.2

-2-

DEALER AUTO LOANS BY COMMERCIAL BANKS (PURCHASED PAPER)

September
1965

Three months
August ending September
1965
1965 1 1964
NEW CAR CONTRACTS

Per cent of contracts written for:
Under 36 months
36 months
Over 36 months

17.7
81. 7
0.6

17.1
82.2
0.7

17.5
81.8
0.7

18.3
81.1
0.6

95

95.

95

95

45.2

43.6

43.3

44.2

Contracts written for 36 months:
Most frequent loan/value ratio 1/
Per cent of contracts with ratios
above 95 per cent

USED CAR CONTRACTS
Per cent of contracts written for:
Under 19 months
19-24 months
25-36 months

20.9
32.6
46.5

19.6
32.7
47.7

97

97

96

97

50.0

50.0

47.2

50.0

19.9
33:0
47.1

21.8
35.1
43.1

Contracts written for 24 months or less:
Median loan/value ratio
Per cent of contracts with ratios
above 97 per cent

JL/Computed mode of ratios, based on dealer-cost v&lues 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.




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L. 4.2

-3-

AUTOMOBILE INSTALMENT LOANS AT COMMERCIAL BANKS
MATURITIES --SEPTEMBER 1965 AND AUGUST 1965
(Percentage distribution of contracts)
Direct
loans
Aug.
Sept.

Total
Sept.
Aug.

Purchased
paper
Aug.
Sent.

17.0
4.5
78.0
0.5

17.2
4.2
78.0
0.6

14.0
3.7
81.7
- M

13.6
3.5
82.2
0.7

25.9
6.9
66.9
0.3

27.0
5.8
•66.8
- M

100.0

100.0

100:0"

100.0

100.0

100.0

13.0
11.2
34.6
41.2

12.1
11.0
.34.8
42JL

10.7
10.2
32.6
46.5

9.6
10.0
32.7
47.7

18.4
13.8
39.1
28.7

18.0
13.3
39.6
29.1

100.0

100.0

100.0

100.0

100.0

100.0

Maturities
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

1J 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 113 banks for
September and August and are not intended to be estimates for all commercial banks.
In September, reports covered about 40,000 contracts on new cars, 30,000 purchased
and 10,000 direct and 27,000 contracts on used cars, 19,000 purchased and 8,000
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

-4DEALER COST RATIOS AND MATURITIES
ON AUTOMOBILE INSTALMENT LOANS

L.4.2

SEPTEMBER 1965 AND AUGUST 1965
NEW CARS
(Percentage distribution of contracts)
Contract balance f 24 months
as percentage of |
ot less

Over 36
31-36
Total
months .
months
|Sept.1 Aug.Isept.1 Aug.I Sept.*l-Aug.1 Sept.-1 Amu-l Sept J Aug _

807. or less
81% to 90%
91% to 100%
101% to 110%
Over 110%
Total

1 8.1
2.0
2.4
1.1
0.4

25-30
months

PURCHASED PAPER
0.1
15.3 16.1
0.1
15.9 16.1
0.1
27.3 28.6
0.1
15.2 14.2
8.1 7.4

7.6
2.5
2.4
0.9
0.3

1.2
0.9
1.0
0.7
0.2

1.3
0.8
1.0
0.4
0.1

13.9 13.6

4.0

3.6 81.7 82.4

0.3

0.1
0.1
0.1
*
*

24.7
18.8
30.8
17.0
8.7

25.1
19.4
32.1
15.5
7.9

0.3 100.0 100.0

DIRECT LOANS
80% or less
81% to 90%
91% to 100%
101% to 110%
Over 110%
Total

16.0 15.9
3.6 4.5
4.9 5.2
1.5 1.3
0.6 0.8

2.8
1.5
2.4
0.4
0.5

3.0 22.1 23.6
1.4 9.2 11.4
1.4 21.0 17.3
0.5 7.4 8.2
0.2 5.8 5.2

26.6 27.6

7.6

6.4 65.5 65.7

9.0
2.8
2.9
1.0
0.4

1.5
1.0
1.2
0.7
0.2

1.6
0.9
1.1
0.4
0.1

15.9 16.0

4.6

0.1

40.9
14 A
28.4
9.3
7.0

42.6
17.3
23.9
10.0
6.2

0.1
0.1

0.1

0.2

0.3 100.0 100.0

17.4
15.3
26.7
13.2
7.0

0.1
0.1
0.1

0.1
0.1

4.1 79.0 79.5

0.3

0.3 100.0 100.0

*
*

TOTAL
80% or less
81% to 90%
91% to 100%
101% to 110%
Over 110%
Total

9.4
2.2
2.8
1.1
0.4

16.4
14.8
26.3
13.9
7.7

*
*

27.4
18.1
30.4
15.7
8.4

28.1
19.1
30.7
14.5
7.6

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 59 banks for September
and August and are not intended to be estimates for all commercial banks. In
September reports covered about 21,000 contracts on new cars, 17,000 purchased
and 4,000 direct. Data are not comparable with previous releases since composition
of the group of banks changes from month to month.

Digitized forDetails
FRASER
may not add to totals because of rounding.


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Not for publication
L.4.2

.5.

DEALER COST RATIOS AND MATURITIES
ON AUTOMOBILE INSTALMENT LOANS (continued)
SEPTEMBER 1965 AND ATOUST 1965
USED CARS
(Percentage distribution of contracts)

Maturities
as percentage of
12 months
13-18
19-24
Over 24 !
Total
wholesale value 1/2/ or less
months
months
months
Sept.1 Aug. Sept.1 Awe. Sept.1 Aug. Sept.1 Aug. Sept.I Aug.
PU1RCHASED PAPER
80% or less
817. to 907.
917. to 1007.
1017. to 1107.
Over 1107.
Total

3.6
1.6
1.8
1.1
2.2

3.0
1.1
1.7
1.1
2.2

1.9
1.5
2.3
l.l
2.6

2.2
|1.6
2.1
1.1
2.6

10.3

9.1

9.5

9.6

4.7 5.5 5.5
5.3 6.4 7.2
8.4 10.9 11.6
5.1 8.5 7.9
9.6 15.4 15.9

4.7
4.8
8.8
5.2
9.8

15.8
14.3
23.8
,16.0
130.0

15.5
15.2
23.8
15.1
30.4

33.3 33.1 46.8 48.1 100.0 100.0
DIRECT LOANS

80% or less
81% to 907.
91% to 100%
101% to 110%
Over 110%
Total

9.6 10.1
2.1 2.3
3.7 4.2
2.5 1.8
2.7 2.3

5.5
2.2
4.2
1.7
2.9

5.9
2.4
3.6
1.6
2.2

10.7 12.3
6.5 7.4
11.0 10.0
5.1 4.9
7.5 6.0

5.0
3.5
6.2
3.8
3.6

5.9
4.7
5.3
2.6
4.5

30.8
14.3
25.1
13.1
16.7

34.2
16.9
23.0
10.9
15.1

20.5 20.7 16.5 15.7

40.8 40.5 22.1 23.0 100.0 100.0

3.1
1.8
2.4
1.2
2.5

19.3 19.8
14.3 15.6
24.1 23.5
15.3 14.1
26.9 26.8
1
35.0 34.8 41.0 42.1 100.0 100.0

TOTAL
5.0
1.7
2.2
1.4
2.3

80% or less
817. to 907.
91% to 1007.
101% to 110%
Over 110%
Total

4.7
1.4
2.3
1.3
2.3

2.8
1.7
2.8
1.2
2.7

12.7 11.9 11.1 11.0

6.1
5.2
9.3
5.2
9.3

6.5 5.4 5.6
5.8 5.7 6.6
8.7 9.8 10.1
5.0 7.4 6.6
8.8 12.6 13.2

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.

NOTE: Distributions are based on tabulations of data from 57 banks for September
and August and are not intended to be estimates for all commercial banks. September
reports covered about 13,000 contracts on used cars, 10,000 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.