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Not for publication
{rtJL&b*u^r
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
September 20 , 1965
DECONTROLLED AFTER:-SIX MOW , f i S D I R E C I AUTO LQAi^S BY COMMERCIAL BANKS
1965
July
1965
June
1965
Three months
ending July
1965
1 1964
NEW CAR CONTRACTS
Per cent of contracts written for:
Under 36 months
36 months
Over 36 months
32.6
67.0
0.4
32.9
66.6
0.5
33.5
66.1
0.4
37.5
62.2
0.3
93
93
94
94
36.7
38.4
Contracts written for 36 months:
Most frequent loan/value ratio 1/
Per cent of contracts with ratios
above 93 per cent
39.7
USED CAR CONTRACTS
Per cent of contracts written for:
Under 19 months
19-24 months
25-36 months
32.6
38.7
28.7
32.9
38.7
28.4
32.2
38.3
29.5
34.9
40.1
25.0
94
93
94
94
36.3
33.8
36.4
38.4
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.
Not for publication
L.4.2
-2-
DEALER A U T O LOANS BY C O M M E R C I A L BANKS (PURCHASED P A P E R )
July
1965
June
1965
Three months
ending July
1965
T
1964
NEW CAR CONTRACTS
Per cent of contracts written for:
Uader 36 montns
36 months
Over 36 months
81.6
18.1
81.1
0.8
18.5
80.8
0.7
19.1
80.3
94
94
94
95
45.3
46.6
46.2
46.8
17.6
0.8
0.6
Contracts written for 36 months:
Most frequent loan/value ratio
Per cent of contracts with ratios
above 94 per cent
U S E D CAR CONTRACTS
Per cent of contracts written for:
Under 19 mo.iths
19-24 months
25-36 montns
21.0
19.4
33.1
47.5
19.1
32.4
48.5
19.1
32.0
48.9
34.8
44.2
95
95
96
97
50.0
50.0
52.0
54.8
Contracts written for 24 montns or less:
Median loan/value ratio
Per cent of contracts witn ratios
above 95 per cent
Not for publication
L.4.2
-3-
AUTOMOBILE INSTALMENT LOANS AT COMMERCIAL BAiiKS
MATURITIES —
JULY 1965 AND JUNE 1965
(Percentage distribution of contracts)
Direct
lo<ans
July
June
Purchased
naoer
June
July
18.2
4.1
77.0
0.7
18.7
4.2
76.4
0.7
14.2
3.4
81.6
0.8
14.5
3.6
81.1
0.8
26.7
5.9
67.0
0.4
27.4
5.5
66.6
0.5
100.0
100.0
100.0
100.0
100.0
100.0
12.6
11.1
34.9
41.4
12.6
11.0
34.4
42.0
9.7
9.7
33.1
47.5
9.4
9.7
32.4
48.5
18.6
14.0
38.7
28.7
19.2
13.7
38.7
28.4
To tal
Maturities
July
June
New Cars
24 months or less
25-30 months
31-36 months
Over 36 months
Total
—
Used Cars If
12 months or less
13-18 months
19-24 months
Over 24 months
— ; —
'
Total
100.0
100.0
100.0
100.0
100.0
100.0
If 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 115 banks for
July and June and are not intended to be estimates for all commercial banks.
In July, reports covered about 51,000 contracts on new cars, 35,000
purchased and 16,000 direct and 32,000 contracts on used cars, 22,000
purcnased and 10,000 direct. Data are not comparable with previous
releases since composition of the group of banks changes from month
to montn.
For distribution according to maturities and contract balances as
a percentage of dealer cost see following pages.
Wot for publication
-4-
L. 4.2
DEALER C O S T RATIOS A N D MATURITIES
ON AUTOMOBILE INSTALMENT LOANS
JULY 1965 A N D JUNE 1965
NEW CARS
(Percentage distribution of contracts)
Contract balances
as percentage of
dealer cost 1/
24 montns
or less
July 1 June
25-30
montns
Julyl June
Maturities
31-36
. months
Julyl June
Over 36
months
Julyl June
Total
July
I June
25.4
21.0
31.0
15.5
7.0
24.6
19.7
32.4
15.6
7.7
PURCHASED PAPER
8 0 % or less
8 1 % to 90%
91% to 100%
101% to 110%
Over 110%
Total
8.1
2.1
2.4
1.0
0.3
7.5
2.0
3.0
1.3
0.6
0.8
1.3
0.7
1.0
1.0
0.4
0.4
oa
13.9
13.9
17,. 7
16.6
4.3
4.9
0.8
0.8
28.4
0.4
0.2
15.9
18.2
27.8
14.1
6.5
15.6
17.0
28.3
14.2
7.1
0.1
0.1
0.1
0.1
0.1
3.2
3.5
82.4
82.2
0.3
0.3
5.1
4.6
0.8
0.6
3.4
1.1
1.8
0.8
0.3
2.9
1.2
1.6
0.4
0.3
22.5
12.4
17.9
7.0
3.8
21.3
13.0
19.8
7.1
4.1
0.2
0.1
0.2
0.1
0.1
0.2
27.7
7.3
6.4
63.5
65.4
0.6
0.5
0.1
0.1
*
0.1
0.1
0.1
0.1
0.4
oTs
100. d 100.0
DIRECT LOANS
80% or less
8 1 % to 90%
91% to 100%
101% to 110%
Over 110%
Total
0.1
0.2
43.9
17.8
24.8
8.6
4.9
41.0
19.4
26.0
8.5
5.0
100.0 100.0
TOTAL
80% or less
8 1 % to 90%
9 1 % to 100%
101% to 110%
Over 110%
Total
10.0
2.5
2.9
1.0
0.4
9.5
2.7
3.4
0.9
0.4
16.8
16.8
1.7
0.7
1.0
0.5
M
4.1
1.7
0.8
1.1
0.4
0.2
17.3
17.0
25.8
12.6
5.9
16.8
16.1
26.5
12.7
6.4
4.2
78.6
78.7
29.1
20.3
29.8
14.2
6.6
28.1
19.7
31.1
14.1
7.1
100.0 100.0
1/ Contract balance excludes finance and insurance charges.
* Less than one-tenth of one per cent.
NOTE: Distributions are based o n tabulations of data from 61 banks for J u l y and
June and are not intended to be estimates for all commercial banks.
In July reports
covered about 24,000 contracts on new cars, 19,000 purcnased and 5,000 direct. Data
are not comparable w i t h previous releases since composition of the group of banks
irom month to month.
Digitized forDetails
FRASER
m a y not add to total
because of rounding.
Net for publicatfcm
L.4.2
-5DEALER COST RATIOS AiiD MATURITIES
ON AUTOMOBILE INSTALMENT LOANS (continued)
JULY 1965 A N D JUNE 1965
USED CARS
(Percentage distribution of contracts)
Maturities
Contract balance
as percentage of
wholesale value 1/2/
12 months
or loss
July | June
13- 18
months
J u l y I June
Over 24%
months
July! June
-24
months
J u l y T June
July! J u n e
PURCHASED PAPER
8 0 % or less
81% to 90%
9 1 % to 100%
101% to 110%
Over 110%
Total
3.7
1.2
1.6
1.1
1.8
2.9
1.4
1.7
1.0
1.5
2.3
1.7
1.6
1.1
2.2
2.0
1.6
2.2
1.1
2.4
9.3
8.5
9.0
9.2
4.7
5.7
8.8
4.8
8.5
5.1
6.3
8.0
5.0
9.2
33.71f 32.51
5.1
8.3
11.7
8.6
14.3
5.8
8.7
12.2
8.4
14c 6
47.9
49.7
16.2
17.5
22.9
15.9
27.6
15.4
17.3
24.9
15.3
27.0
100.0 100.0
DIRECT LOANS
8 0 % or less
8 1 % to 9 0 %
91% to 100%
101% to 110%
Over 110%
Total
11.7
2.2
3.9
1.3
1.9
12.4
3.1
3.9
1.2
2.3
6.4
2.2
3.4
1.3
2.1
6.2
2.8
4.1
1..1
1.9
12.9
6.2
12.2
3.6
6U0
13.1
7.6
9.1
4.1
5.9
5.1
4.5
7.7
2.0
3.4
5.4
4.2
5.5
2.5
3.8
21.1
22.8
15.3
16.0
40.7
39.8
22.8
21.4
36.0
15.1
27.3
8.2
13.4
37.1
17.7
22.6
8.8
13.8
100.0 100.0
TOTAL
80% or less
8 1 % to 90%
9 1 % to 100%
101% to 110%
Over 110%
Total
5.8
1.5
2.2
1.2
1.9
5.4
1.8
2.3
1.1
1.7
3.4
1.8
2.1
1.2
2.2
3.1
1.9
2.7
1.1
2.2
7.2
6.2
9.1
4.6
8.3
6.9
6.2
8.9
4.6
7.8
5.1
7.3
10.6
6.8
11.3
5.7
7.5
10.5
6.8
11.7
12.5
12.3
10.7
11.0
35.5
34.3
41.1
42.2
21.5
16.8
24.0
13.8
23.7
21.1
17.4
24.3
13.6
23.4
100.0 100.0
\J Contract balance excludes finance and insurance Changes.
2/ W h o l e s a l e value represents "average Tiio}.eeale," "as is," or "buying v a l u e "
as indicated by used car guides.
NOTE: Distributions are based on tabulations of data from 58 banks for July
and June and are not intended to be estimates for all commercial banks.
July
reports covered about 15,000 contracts on used cars; 11,000- purchased and 4,000
direct. D a t a are not comparable w i t h previous releases since composition of the
group of banks changes from m o n t h to month.
Details m a y not add to totals because of rounding.
@FedFRASER