Full text of G.20 Sales Finance Companies : August 3, 1943

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•

Immediate
Release
August 3, 1943

DEPARTMENT OF COMMERCE
BUREAU OF THE CENSUS

LIBRARy·,.,
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1'

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The number of new passenger ears tiJI.alloed bJ sales 1'1Jlalloe companies 4roppe4 23 percent troa
the.t or MaJ or this 7ear, an4 the dollar vollDIB or paper acquired. in this tJPe or tillai1Cing tell ott
2l percent, according to an llDllOUD.cement released to4ar bJ 1. c. Capt, Director ot the Censv.s.
'!'he
number of used passenger ears financed, honTer, gained 3 percent, an4 the dollar voliDIII!I or paper acquired, 6 percent.
New collllll8reial vehicles 1'iD.aiLeed increased 19 percent in nwaber aa4 8:5 percent in
dollar voliDIII!I or paper acquired, June COlllpa1'8d w1 th MaJ 1943.
On the other hantl, the nWilber of used
cODDercial car• financed was ott M percent aa4 the dollar vol\1118 ot paper acquired, <&4 percent. Data
contained in this report are based on a sample surTeJ conducted b7 the Bureau ot the Census~

The volume or retail automotive outstanding& held b7 sales finance companies was 9 percent
less as ot JUD.e 30, 1943 than as or J1a7 31, 1943. Last June ..the index • s at 86 aa4 has since declined
to 16.

OUTSTANDING BALANCES
RETAIL AUTOMOTIVE FINANCING
INDEX

DECEMBER 31, 1939 = 100

20Qr--------------,.-------------~---------------,

1941

1942

1943

01' the wholesale automotive paper acquired bJ sales finance companies during June 1943, the
volUlll8 tor new passenger and OOIIIII18rcial cars advanced 'I percent over that reported tor the precediDg
month, and the volume or used passe~~ger and collllll8rcial cars rose 53 percent. The volUlll8 or outstanding
balances tor this tJPe of paper 118.S 10 percent less on June 30 than on J1a7 31, 1943.
·
In retail diversified financing, for June this 7ear compared with the preceding month, residential building repair and modernization registered a gain ot 42 percent; refrigerators and household
appliances, 21 percent; and furniture, radios, and musical instruments, 6 percent.
The financing ot
industrial, collllll8rcial., and farm equipment was ott sligb.tlJ (31,£), and the volume or paper acquired in
wholesale diversified financing dropped 25 percent trom last month.
Diversified outstanding balances held b7 sales finance companies were moderatelJ reduced in
volume during JUD.e, declining 4 percent for industrial, commercial, and farm equipment, 6 percent for
wholesale diversified financing (other than automotive), and 8 percent tor the retail 1'inancingotother
consumers' goods.
Paper acquired during June 1943 was 15 percent or the outstanding balances as of June 30,
1943 tor retail automotive, 9 percent for wholesale automotive, 21 percent tor wholesale--other than
automotive, 6 percent tor retail--other consumers' goods, and 5 percent for industrial, commercial, and
tarm equipment.

I

These data on the current trends of sales financing during June 1943 were based on reports
from 213 sales finance companies, and the dollar volumes should not be assumed to represent the total
amount or financing b7 all sales finance companies in the United States.
The data are published as
reported,.without adjustment tor seasonal or price fluctuations. The figures presented in tables 4, 5,
and 6 ot this release are not comparable to those published tor previous months, since monthl7 reports
have not been received each month from identical sales f'inance companies.
All indexes tor June were
obtained b7 calculating the percent changes from May to June, as shown by data on reports tor both
months from the same sales finance companies, and b7 linking these percentages to the indexes previouslJ
derived tor Ma7 1943.


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SALES FINANCE .COliiPANIES

Table 1.--Automotive and Diversified F,inancing
.Index of Trends in Outstanding Balances by Class of Paper
Dec~er 31, l939 = 100
Total.
all
sales
financing

Date

~

Retail
automotive

Wholesale
automotive

Wholesale
other
than
automotive

Retail
other
consumers'
goods

Industrial,
commercial,
and farm
equi,IXIlent

1939 - Dec. 31 ......•

100

100

100

100

100

100

1940 - Dec. 31 ... ....

136

132

169

140

129

131

1941 - Dec. 31 •••••••

152

149

175

250

148

147

1942 - June 30 . ...•••
- July )1 •••••••
Aug. 31 •••••••
Sept.30 •••••••
Oct. 31 •••••••
Nov. 30 •••••••
- Dec. 31 •••••••

105
95
84
75
67
60
53

86
77
67
59
51
44
37

193
175
151
137
124
118

130
110
97
85
74
52
40

118
110
103
96
89
83
76

148
140
134
124
110
64
61

48
42
37
33
30
27

31
27
22
20
18
16

107
100
91
81
70
63

34
30
26
24

70
64
58
52
47
44

60
55
52
49
46
44

-

-

1943 - Jan.
- Feb.
- ii.ar.
- Apr.
- May
-June

sf

31 •••••••
28 •••••••
31 •••••••
30 . .•••..
31 .. .....
30 • ••••••

112

12

11
~

Indexes as of December 31 for the years of 1939, 1940, and 1941 are based on f~gures reported by
sales finance companies on a supplementary report form which accompanied the regular monthly report form for January 1942. Succeeding indexes are derived by calculating the percent changes of
the outstanding balances reported by sales finance companies for each month from those reported
by the same companies for the preceding month, and by linking these percentages to the indexes
for the preceding month.

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Table 2.--Relative Importance of Loans made by Sales Finance Companies, June 1943
Volume of Paper Acquired during the Month and Outstanding Balances at the End of the Month

Class of paper

Paper acquired
during month
Percent
Amount
of
total

Outstanding balances,
end of month
Percent
Amount
of
total

Total, all classes of paper~··········

$60,500,749

100

$262,648,773

100

Total loans . ..........................

~8161612~8

Small (personal) loans ••••••••••••••
Business loans .•••••••.••.••••••••••

5,200,586
33,415,652

Qb.
9
55

68 1826 118..Z
27,301,523
41,594,664

~

5/ .............

21,884,511

36

193,752,586

74

Total sales financings
Bureau of the Census

sf

Current

10
16

.

-·
Stat~st~cal Serv~ce

Included in this classification are only those firms which, in addition to their sales financing
operations, reported loan activities.

Digitized for3-33928
FRASER


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Page 3
SALES F !NANCE COUP ANIES

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0

Table 3.--Automotive and Diversified Financing
Index of Trends, 1942-1943 !/
January 1942 • 100
1942
Item

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0

1943
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Cll

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RETAIL AUTOMOTIVE
Total number of cars financed ••••••••••••••••••••••••

Total volume of paper acquired ••••••••••••••••••.••• ~.
New passenger cars ••••••••••••••• Number ••••••••••••

Paper acquired ••••

61 6l 54
57 58 52

42 32 27 20 l8 2l 33 36 35
4l 32 25 19 17 2l 35 40 39

52 53 50 40 23 14 10 9 l l 24 33 30 23
55 57 54 45 26 16 l l l l 13 30 39 36 28
25 22 19 10
29 25 23 l l

Used :1assenger cars •••••••••••••• Number ••••••••••••

64 63 ~5 43 34 28 2l 19 22 35 37 36
60 60 '54 42 34 28 22 19 23 37 41 40

Used commercial cars ••••••••••••• Number ••••••••••••

Paper acquired ••••

8
9

5 10 l4 l l 1.3
6 13 15 12 15

New commercial cars •••••••••••••• Number ••••••••••.•
Paper acquired••••

Paper acquired ••••

34
38

6
8

3
4

4
5

37
42

46 42, 34 28 21 16 l2 13 15 15 22 2l 10
51 47 39 34 28 22 17 20 24 24 35 33 18

WHOLESALE AUTOMOTIVE
(Paper acquired)
12 12 10 10

9

6

5

5

6

9

9

7

9

New cars (passenger and commercial) ••••••••••••••••
. G

10

6

5

4

3

3

5

6

4

4

Used cars (passenger and commercial) •••••••••••••••

29 29 28 27 29 l4 13 14

20 31 32 22

33

23 20 23 24 29

31

Total volume of paper acquired•••••••••••••••••••••••

8

7

7

DIVERSIFIED FINANCING
(Paper acquired)
Total diversified financing ••••••••••••••••••••••••••

Total retail, other consumers' goods •••••••••••••••
Furniture, radios, pianos, etc., Total •••••••••••
Furniture . .•.......•••.••.••••..••.•.•••..•••••.

Radios, pianos, other musical instruments ••••••
itefrigerators & other household apf.iances, Total.
Refrigerators (gas and electr~c •••••••••••••••
Other household appliances •••••••••••••••••••••

62 47 42 40 46

39

80

52 60 30 26 28

59 54 52 60

45

Q
8 12 18 22
57 32 26 2~ 2L. 17 1':1
63 34 22 19 23 15 l l 7 6 12 18 22
46 31 37 36 28 23 21 14 13

Miscellaneous retail •...••••••••••••..•••••••••••

142 124 117 135 97 87 88

84 77 76 82

64 142 43 35 40 48

Total wholesale, except automotive •••••••••••••••••••

18 12 l l

9 10

6

Industrial, commercial, and farm equipment.· ••••••••••

49 46 31 27 40

30

..

42

'"

98
,.,

oureau of the Census

38

'i2 L.? 43 42 47 LO 'i1 1Q 1L.
2'1 31 33
73 66 59 59 64 55 71 62 48 35 27 31 33
33 30 31 28 33 29 40 16 22

Residential building repair and modernization ••••

I

))

63
2

54

2f..

26
77

51 65 67 101 87
5

3

59 42 27 64 41 38

37

3

Current

3

3

5

StatlSt~cal

Service

!}) Indexes are derived by calculating the percent changes in the number of cars financed or the volume of
~aper acquired by sales finance companies during each month !rom the number or cars financed or the volume
y of paper acquired by the same companies during the preceding month, and by linking these percentages to
the indexes for the preceding month.
The indexes for 11 TotaJ. retai+ automotive 11 , 11 Total wholesale automotive11, and 11 Total retail, other consumers' goods 11 are based on all figures reported !or these items regardless of whether or not breakdowns could be supplied.


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,.,. 4
SALES FINANCE C011P.ANIES

Volume of

P~per

Table 4.--Automotive and Diversified Financing
Acquired during June 1943 and Balances Outstanding June 30, 1943
Volume of paper acquired
durinR. J 11118 1 QL. 1
By companies
By all
reporting
COlllpanies
outst~~
balances

Class of paper

Outstanding
balances
June 30,
1943 J!

Ratio paper
acquired to
out stand~
balances

'

Total retail automotive •••••••••••••••••••••
Total wholesale automotive ••••• , •••••••••••••
Total wholesale- other than automotive ••••••
Total retail- other consumers' goods ••••••••
Industrial, commercial, and f&rlll equipnent.,.
Total sales financings •••••••••••••

$19,626,408
$19,332,778
$131,807,115
15
9,444,632
9,233,863
101,159,596
9
193,849
21
157,417
764,468
4, 770,718
4,629,203
79,577,041
6
382,970
369,122
7,079,459
5
$34,418,577
$33,722,383
J320,387,679
ll
!I Data are based on figures frOlll sales finance companies able to report both their paper acquired and their
outstanding balances.
~Ratios obtained by dividing paper acquired (column 2) by outstanding balances (column 3).

Table $.--Automotive Financing
.Number of Cars Financed and Volume of Paper Acquired -during June 1943
Number of cars
Percent
Number
of
total

Class of paper

Total retail automotive ••••••••••••••••••••••

41,076

100
-

New passenger cars •••••••••••••••••••••••••
New commercial cars ••••••••••••••••••••••••
Used passenger cars ••••••••••••••••••••••••
Used commercial cars •••••••••••••••••••••••

2,842
238
37,380
616

7
1
91
1

Total wholesale automotive •••••••••••••••••••

12.022

lQQ

New cars (passenger and commercial) ••••••••
Used cars (passenger and commercial) •••••••

4,872
7,150

Paper acquired
Percent
Dollar
of
volume
total
$19,418,435§/
2,575,274
292,759
16,142,609
407,793

41
59

100
13
2
83
2

i!;l,2Q2 I ~:1.6 J!

J.l&

3,679,799
4,589,817

44
56

if Data are based on reports from sales finance companies providing a breakdown of their retail and wholesale
automotive financing. These amounts are less than those reported in table 4 due to the exclusion of
data for which breakdowns were not available.

some

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fable 6.--Diversified Financing
Volume of Paper Acquired during June 1943
Class of paper

Dollar volume

Retail - other consumers' goods:
Furniture, radios, pianos, and other musical instruments ••
Refrigerators, and other household appliances •••••••••••••
Residential building repair and modernization •••••••••••••
Miscellaneous retail •••••••••••••• , .•••••••••••••••••••.•••

$1,062,487
378,666
1,892,465
l.IJ.L997

Total retail- other consumers' goods •••••••••••••••••••••••
Total wholesale- other than automotive •••••••••••••••••••••
Industrial, commercial, and farm equipment ••••••••••••••••••

$4,745,615 ~
193,849
J82,2ZO

Total diversified financing •••••••••••••••••••••••
Bureau of the Census
~

$5,322,434

Percent
of
total
20
7
26

J6.
89
4
_'l

100
Current Statistical Service

Data are based on reports from sales finance companies providing a breakdown of their retail financing of
other consumers' goods.
This amount is less than that reported in table 4 due to the exclusion of some
data for which breakdowns were not available .•

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