Full text of G.20 Sales Finance Companies : February 3, 1944

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

;"\ ') ;d

'i}"},c.-;

c~~-,

• . illi1Diil '

•

j:
, ~'~ EPART MEN T 0 F C0 MMER CE
Immediattn!·'lO OF:;:: ,. :·•:['Y
'~M
BUREAU OF THE CEN~US
Release H'O\i'·'••L .. ;t····
(ebruary 3,. 1944
f' • 11

,~,.

Current
Statistical
Service

FEB -o \941i
LIBRAF\Y

SALES FINANCE COJ4PANII!'.'3
DECEMBER 1943

A decrease of 23 percent in the number of new passenger cars financed by sales finance companies.was reported for December 1943 compared with the preceding month, and the dollar volume ot
paper acquired in this type of financing decreased 19 percent, according to an announcement released
today by J, C. Capt, Director of the Census.The number of used passenger cars financed rose slightly
(2%),while the volume of paper acquired showed virtually no change. New. commercial vehicles financed
dropped 68 percent in number and 32 percent in dollar volume of paper acquiTed, from November 1943.
The number of used commercial oars financed during the final month of 1943 was 8 percent over the
number recorded for the preceding month, and the dollar volume of paper acquired ·was up 25 percent.
Data contained in this report are based on a sample survey conducted by the Buresu of the Census.
The volume of retail automotive outstandings held by sales finance compaDies on December
The index which
31, 1943 was slight·ly (2%) less than that repo!I'ted . for the end of November 1943.
far3 ~uceessive months had remained at 14.was lowered to 13 for the year-end.
OUTSTANDING BALANCES
RETAIL AUTOIDTIVE FINANCING
DECmBER 31, 1939 - 1.,00

INDEX

200.-------------~---------------r--------------~

1941

1942

1943

Of the wholesale automotive paper acquired by sales finance companies during December
1943,the volume.ofnew passenger and commerical cars rose 11 percent from that reported for November,
while the volume of used passenger and commercial cars showed an 8 pe_rcent decline. The volume of
outstanding balances for this,type of paper was ·4 percent less on December 31 than ort November 30 1
1943.
.
.•
In retail diversified financing, for December 1943 c9mpared with November 1943, furniture,
and musical instruments registered a gain-of 10 percent; while a decrease of 13 percent was
noted for residential building repairs and modernization,and 40 perc~nt for refrigerators and household appliances. Wholesale diversified paper acquired showed a substantial gain of 25 percent, but
paper acquired for industrial, commercial, and farm equipment declined 66 percent.
~dios,

Diversified outstanding balances held by sale~ finance companies at the end of December
1943 were reduced 4 percent in volume for retail financing of other consumer's goods and 22 percent
for industrial, commercial, and farm equipment.
Outstandinge for wholesale diversified financing
(other t~ automotive), however, increased 15 percent.

_.,

Paper acquired during December 1943 was 15 percent of the outstanding balances as of
December 31, 1943 for both retail automotive and wholesale automotive, 27 percent for wholesaleother than automotive, 8 percent for retail--other consumers' goods, and 9 percent for industrial,
commercial, and farm equipment.
These data on the current trends of sales financing during December 1943 were based on reports from 200 sales finance companies •, and the dollar volumes should not be assumed to represent
the total amount of financing by all sales finance companies in the United States. The data are
published as reported, without adjustments for seasonal or price fluctuations. The figures presented
in tables 4, 5, and 6 of this release are not comparable to those published for pr~vious months,·
since monthly reports have. not been received each month from identical sales finance companies. All
indexes for December were obtained•by calculating the percent changes from November to December as
shown by data on reports for both months from the same sales finance companies, and by linking these
percentages to the indexes previously derived for November 1943.
· -.




3-30446

Page 2
SALES flNANCll: COMPANIES

Table 1.--Automotive and Diversified Financ.ing
Index of Trends in Outstanding Balances by Class of Paper
December 31, 1939 = 100
Total

other
consumers'
goods

100

100

100

100

100

136

132

169

140

129

131

152

149

175

250

148

147.,

53

37

112

40

76

61

48
42
37
33
30
27
25
23
22

31
27
22
20
18
16
15
15
14
14
14
13

107
100
91
81
70
63
59
52
47
45
42
40

34
30
26
24
12

70
64
58
52
47
44
40
38
36
34
32
30

60
55
52
49
46
44
41
39
36
33
35
27

1940- Dec. 31 ••.... • '
1941 - Dec. 31 •••••••

·all

sales
financing

)lee•o•••

1942 - Dec. 31 •.•••••

I

1943- Jan. 31 •••••••
- Feb. 28 •••••••
- Mar., 31 •••••••
- Apr. 30 .••.•••

- May

31 .......

- JUne 30 •••••••

-July 31 •••••••
-Aug. 31 •••••••
- Sept.30 •.••••••
- Oct. 31 •••••••
-Nov. 30 •••••••
- Dec. 31 •••••••

!f

.

Wholesale
automotive

100

1939 - Dec.

.
Retail

Wholesale
other
than
automotive

Retail
automotive

Date

y

21
20
20

11

10
8
8
7
7
8

Industrial,
commercial,
and farm
equipment

.'

'

I

Indexes as of December 31 for tre years of 1939, 1940, and 1941 are based on figures reported by
sales finance companies on a supplementary report form which accompanied the regular monthly re·port 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 fr·om those reported
by the same companie~!or the preceding month, and by linking these percentages to the indexes
for the preceding month.

\
Table 2.-Relative Importance of Lo9ns Made by Sales Finance Companies, December 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
of
Amount
total

Outstanding balances,
end of month
Percent
Amount
of
total

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

$58,755,875

100

$242,617.,922

100

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

34,918,282
6,285,143
28,633,139

60
ll

Ib

49

82,528,301
38,727,856
43,800,445

18

Total sales financing!~·············

23,837,593

40

160,089,621.

66

Bureau of the Census

y

Current

34

Statist~cal Serv~ce

Included in this classification are only those firms which, in addition to their sales financing
operations, reported loan activities.
3-30446




..,.
•

.·Page 3
: SALES FINANCE COMPANIES

;,. fEB -E \944
UBRAF-Y

fe

'

;

1943

1942

.

Item

()
Q)

j::l

~

~

..

.0
Q)

r...

~

~~

p.,

<

Q)

l>o

~ ~ ~

. ~. ..,.

!

Q)

Ul

8

i

:z;

.

()
Q)

j::l

RETAIL AUTOMOTIVE

i
(

I

Table ).--Automotive and Diversified Financing
Index of Trends, 1942-1943 !/
January 1942 = 100

~otal

number of cars financed ••••••••••••••••••••••••
Total volume of paper acquired.~···•••••••••••••••••••

New passenger cars ••••.••••••..••• Number ••••..••.••
Paper acquired ••••

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

20 18 21 33 36 35 34 33 34 33 29 28 28
19 17 21 35 40 39 38 36 39 37 33 32 32
10

9 11 24 33 30 23 19 18 11 11 8
30 39 36 28 23 22 l4 13 10

6
8

9 9 25 20 17
9 11 18 13 12

5
8

11 11 13

3
4

4
5

5 10 14 11 13
6 13 15 12 15

ijlsed passenger cars ••••••· ••••••••• Number ••••••••••••
Paper acquired •••

21 19 22 35 37 36 37 35 38 36 31 31 32
22 19 2.3 37 41 40 42 41 44 44 38 38 38

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

12 13 15 15 22 21 10 13 13 6 14 9 -10
17 20 24 24 35 33 18 20 22 12 27 19 27

Paper acquired •••
WHOLESALE AUTOMOTIVE
(Paper acquired)
Total volume of_ paper acquired •••••••••••••••••••••••

5

5

6

~

9

7

9 10

9

9 10

9

9

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

4

3

3

5

6

4

4

4

3

2

2

13 14 20 31

32

22

Used cars (passenger and commercial) ••••••••••••••••
DIVERSIFIED FINANCING
(Paper acquired)

3

3

33 47 37 39 50 50 46

I

·;..

Total diversified financing ••• ~:.'••••• f,•~-_t••••.••••••

45 23

20

23 24 29 31 28 30 33 30 41

32

-:.·.,

.

. Total retail, other :cons1l!ll8~fl 1 'goods •••••••••••••••

'

Furniture, radios, piano,s,, etc., Total •••••••••••
F'u.rnitll%'e •• •••••••••• ~ ·•••••••••••••••••••••••••

, Radios, pianos, other musical instruments ......
Refrigerator.s & other household appliances, Total
Refrigerators (gas and electric) •••••••••••••••
Other household appliances •••••••••••••••••••••
Residential building repair and modernization ••••

Miscellaneous retail •••••••••.•••••••••••••.•••••
Total wholesale, except automotive •••••••••••••••••••

.

Industrial, commercial, and farm-equipment •••••••••••
·Bureau of the Census

60 30 26

30 38 42 39 42 47

41

49

42

53 39 34 3_5 27 31 33 28 28 23 27 ..21.
71 62 48
40 16 22 35 27 31 33 28 28 23 27 24

26

8 1';1 18 22 26 15 i4 12 12 l'i
7 6
21 14 13 12 18 22 26 15 14 12 12 15

9
9

28

·'

13

9

11

26

142 43 35 40 48 54- 77 81 89 94 92 115 100

.

88 63 51 65 67 101 S7 78 86 125 75 94
3

2

59 42 27 64 41 38 37

22

3

2

3

3

5

5

75

2

2

28 27 38 157

54

2

2

2

I

Current Statistical Service

!( Indexes are deriv.ed· by calculating the percent changes in the number of ·cars financed or the volume of
paper acquired by sales finance companies during each month from the number of cars financedor the Vdlume
of paper acquired _ by the same companies during the preceding month, and by linking these percentages t.o .
t_he indexes for the preceding morit'h,
The indexes for 11Total retail automotive, 11 11Total wholesale automotive," and 11 Total retail, other consumers' goods" are based on all figures report'ed for- these items regardless of whether or not breakdowns could be supplied,
a:.30446



....

Pee• 4

SALEs

FINANCE COMPAND:S

/
Volume

'

'

Table 4.-Automotive and Diversified Financin&
Paper Acquired During December 1943 and Balances Outstandiil& December 31, 1943
'
vo:~:ume or_ paper acf:~ea
during_ December l '~
Outstanding
Ratio paper
By companies
balances
acquired to
Class of paper
By all
reporting
December 31,
outstanding
companies
outstanding
balances 'pj
1943 !I
balances .!7

ot

Total retail automotive • ••••.••.•••••.••..••
Total wholesale automotive •••••••••••••••••••
Total wholesale - other than autanotive, ••••
Total retail- other consumers' goods .......
Industrial, commereial, and farm equipment ••
Total sales !inancings ••••••••••••

$],.6 ,560,480
9,697,567
191,130
4,896,357
452.946

$16,186,796
9,651,748
169,707
4,679,837
450,491

$110,138,393
64;559,680
630,712
58,106,704
5.065,283

15
15
27
8

$31,798,480

$31,138,579

$238,500,772

13

_..:i_

e-

'!! Data are based on figures !rom sales finance compan;es ·able to report both their paper acquired and their

'EI

outstanding balances,
Ratios obtained by dividing paper acquired (column 2) by outstanding balances (column 3).

Table 5.--Automotive Financing
NUmber of Cars Financed and Volume of Paper Acquired During December 1943
Number of cars
Percent
Number
of
total

Class of paper

Total retail automotive ••••••••••• •.• •••••••••
New· passenger cars .........................
New oommercial. cars. , , .....................
Used passenger cars ••••••••••••••••••••••••
Used commercial cars •••••••••••••••••••••••

,

Paper acfl,uired
Dollar
volume

Percent
of
total

n6,2Zl.,26ll!:/

1.QQ

. . .:u..m

.!Q9_

765
125
31,843
659

2
l
95
2

729,868
408,798
14,529,748
603,347

'

'•

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

13,257

100

i8,202,324

New cars (passenger and commercial) ••••••••
Used cars (passe~er and commercial) •••••••

4,368
8,889

67

33

2,054,025
6,148,309

4
3
89
4

'!:!

e.

100
25
75

•
!f Data are based on reports from sales finance cqmpanies providing a breakdown of their retail and ·wholesale
automotive financing. T!Jlse amounts are less j::han those reported in table 4 due to the exclusion of
data tor which breakdowns were not available.

some

Table 6.~Diversified Financing
Volume of Paper Acquired During December 1943
Class of paper

Dollar volume

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

$700,830
127,892
2,988,754
1,064,203

Total retail - ot~r consumers• goods .......· ........ ,•••• , .•••
Total wholesale- other than automotive ••••••••••••••••••••••
Industrial, commercial, and farm equipment •••••••••••••••••••

$4,881,679
191,130
422,946

Total diversified financing ••••••••••••

$5,525,755

Bureau of the Census

!f

.. ,.

13
2
54
19

1!:1

88
4
8
100

Current Statistical Service

Data are based on reports from sales finance companies providing a breakdown of their retail financing of
other oon8UIIlers 1 goods. This amount is le!IS than that reported in table 4 due to the exclusion of some
data for which breakdowns were not. available.


http://fraser.stlouisfed.org/
. I
Federal Reserve Bank of St. Louis

-.-

Percent
of
total

3-30446

'