Full text of G.20 Sales Finance Companies : March 31, 1944

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MAR 311844
fi~.:..

LIB RAR.Y ;&r_

SALES FINANCE cOJ!PAms
IIEBRUARY 1944

G 'C> ~'t -:~.
Tba IIWilber of new passenger cars financed b;r ul.es filiiiAce =-PUiea dropped Z3 percant
tar J.l'ebruar;r 1944 compared with the precedi-'18 month, and tba dollar wllllle of paper aoqaired lD t.hia
t1])8 of financing decreased 24 percent, according to an &nllCIWlCIJMRt released toda,y. b;r J. c. c.pt.,
Director of the C8D.aua. A rise of 13 percent lD the number of ued puseacer cars tinmced -.. reported al0118 with a gain of 14 percent in dollar wl111111 ot paper acquirecl. Hew c-rci&l vehicl.a
financed increased 59 percent in number and 26 percent in dollar volU1118 ot paper acquired,troa Jaau.ar;r 1944. TIJB nunber of used comaercial cars financed during the second JIIDilth of 1944 wu .u.,ht.l,r
(3%) larger than the number recorded for the preceding month,and the dellar volume of paper· acquired
waa up 8 percent. Data contained in this report are baa~ on a sample survey conductecl by the :&urea
ot the Census.
The volume of retail automotive outstanding• held b;r aalea finanee o011paniea 011 J.l'eb1'11&1"7
29, 1944 was virtu&llT the sliM as that . reported at the end of Januar;r 1944.
Tba index tor retail
automotive outstandi111s which stood at 13 tor December 1943 and JIIDuaryl944 ~ed 'IIDIIhiJII.sed 1a
J'ebru&r7 this 11Jaro
OOTSTAJIDIHG BALANCES
RETAIL AUTOUariVE FINANCING
DEC:DIBF.2i 31, 1939 • 100

INDEX
200

150

~

./

100

~"'-....

50

0

'~

1941

1942

'--

-.

1943

'1944

ot the wholesale automotive paper apquired b;r sales finance companies during Februar;r 1944,
t!JB vol111111 tor new passenger and coiDIDBrcial cars was 35 percent lass than that reported.to.r Januar7
1944, while the wl111111 tor used passenger and commercial cars increased 27 perctmt. · The volllllll of
outstanding balancea for this type of paper was slightly (2%) smaller at the end of Februar;r 1944
than at the cloae of January 1944.
lor J.l'ebruary 1944 compared with Januar;r 1944, in retail diversified tinancine,l reilidentW
buildi-'18 repairs and IIIOdernillatiOll registered a gain ot 6 percent in paper acquired; while decreaeea
ot 31 and 45 percen.t were rav.ealed far ·turnit\.ire 1 radioe, and musical instrumente and retrigeratore,
hciu.eehold appliances, respectively.
The_ financing ot industrial, co.... rcial, and tazm equipMnt
ahcllled a spectacular rise of 259 percent, but. paper acquired tor the wholesale diversified ll.JMia
(other thu automotive) dropped back 48 percent.

DiTersitied outstanding balances held b;r sales finance companies at the end ot Februar7
1944 were incre~ed 19 percent in -volWIII for industrial, co-rcial, and fazm equipment and elig}\tl7
(~) tor 'llholaa&le diveraitied financing 1 but a 4 percent decrease occurred in retail-other coniiWIII:r
ou.t at.udings.
Paper acquired during Februar;r 1944 was 28 percent ot the outstanding balance• &I of
J.l'ebraary 29, 1944 tor wholesale-other than automotive, 25 percent for industrial~ c-rcial, ud
tara eqai.-nt, 22 percent tor wholesale automotive, 15 percent tor retail automotive, and 8 percent
tar retail-other COD.SWI8rs 1 goode.

'

Thllae data on the current trends of sales financing during Februa:rr 1944 were baaed on reports fl'OJII 200 sales finance companies, &IJ.d the dollar volumes ehould not be aseumed to represent
the tot.al llllOWlt of financing by all sales finance companies in the United States.
The data are
p!bllahed as reparted, without adjustments for seasonal or price fluctuations. The figures presented
1n tablea 4, 5, and 6 of .this release are not comparable to those published for praviOila montha,
since manthl;r reports ha~ not been received each month from identical sales finance companies. All
lDclexea for Februar7 were obtained by calculating the percent ch&~~~es from January 1944 to Februar;r
1944 •• ehelll 'by data on repa:rta tor both months trom_t~ BBM aalaa finance companies, and by l.iniG1111 theae percent.lll'• to ,the indexes previously derived tor Januar;r 1944.

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SALES FINANCE COUPANIIS

Table 1.-Automot.ive and Diversified Financine
Index ot Trend• in oute t.andine Balanc11 b7 Claaa ot Paper
December 31, 1939 • 100

!I

Wholeaa:l.e
other
than
automotive

Retail
other
coneumera 1

100

100

100

lOO

132

169

140

129

131

152

149

175

250.

148

147

.3].. •••••••

53

37

112

40

76

61

1943 - Feb. 28 •••••••

42
37
33

27

100
91
81
70
63
59
52
47
45
42
40

30

64

55

38
37

Total
all
Ialii
tinancine

Ret.&il
aut01110~i ve

1939 - Dec. )1 •••••••

100

lOO

1940- Dec. )1 •••••••

136

1941- Dec. 31 •••••••

Date

1942 - Dec.

- Kar. )1 •••••••

- Apr. .3() •••• ·•••
- )fa7 .31. •••••••

22

20

-Oct. )1 •••••••
- Nov. 3C> ••••• ••

- Dec. 31 •••••••

2l
20
20

18
16
15
15
14
14
14
13

1944- Jan. ·31•• ~ ••••
- Feb. 29 •••••••

19
18

13
13

- June 3() •••••••

- July 31 •••••••
- Aue. 31 •••••••
- Sept.JO •••••••

!I

30

27
25
23
22

Wholeaale
automo t:J. ve

26
24

JOOdl

Induetri&l,
c01111111rci&l,
and tam
equipnent

10
8
8
7
7
8

58
52
47
44
40
38
36
34
32
30

52
49
46
44
41
39
36
33
35
27

10
10

29
27

26
31

12
11

•

Indexes as ot Dece.mber 31 tor the years of 1939, 1940, and 1941 are based on fieures reported b7
sales finance companiea on a llllpplem.entar,r report form which accompanied the reeular monthl.T report form for Januar.r 1942. Succeedine indexes are derived b7 calculatine the percent chqea ot
t.he out.standinJ balances reported b,y sales finance companies tor each month from those reported
b,y the same companies tor t.he J3'ecedine month, and b,y linkinl these percentaees to t.he indexes
tor the J3'ecedine month.

Table 2.--Relative Importance ot Loans Made b,y Sales Finance Companies, Februar7 1944
Volume ot Paper Acquired Durine the Month and OUtstanding Balances at the End of the Month

Class of paper

Paper acquired
during month
t'ercent;
of
Amount
total

OUtstanding balances,
end of month
percent.
Amount
ot
total

$67J476.232

100

$243.220.974

61

Business lo~·•••••••••••••••••••••

{t0 1 26J 1 2JO
5,554,695
35,408,535

8

53

82.87J.222
38,599,137
47,274,155

H
19

Total sales financine !/••••••••••••••

26,513,002

39

157,347,682

65

Total, all classes of paper !/•••••••••

Total loans •••••••••••••••••••••••••••
S.ll (perscnal) loans ••••••••••••••

Bureau ot the Census

!I

100

Current Statistical Service

Included in this classification are onl7 those firma which, in addition to their aalee tinaocill£
operations, reported loan activities.


3-31353


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~· 3

SALES FINANCE COMPANIES

Table 3.--Automotive and Diversified Financing
Index of Trends, 1943-1944 !/
January 1942 • 100
1943

.
~

Item

""'

~p..

~ ""

:t

....
~ ~
(I)

i

1944

.

~ 8..;

{I]

i

II!;

.

()
(I)

~

~

.

~

""'

RETAil. AUTOl4Gl'IVE

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

•

Hew passenger cars ••••••••••••••• Number •••••••••••••
Paper acquired, , • ,

New commercial cars •••••••••••••• N~Q'~············

Paper acquired.,,,,

21 33 36 35
21 35 40 39
ll

13

34 33 34 33 29
38 36 39 37 33

28 28 23
32 32 28

8
33 30 23 19 18 ll l l
30 39 36 28 23 22 l4 13 lO

24

5 10 l4 l l 13
6 13 15 12 15

Used passenger cars •••••••••••••• Number ••••••••••••
Paper acquired •••••

22
23

Used comDercial cars •••••.••.•.•• Number ••••••••••••
Paper acquired •••••

15 15
24 24

9 25 20 17
9
9 l l 18 13 12

6
8
8 lO
5
8

26
3l
6
8

8 12
9 12

35 37 36 37 35 38 36 3l 31 32 26
37 41 40 42 41 44 44 38 38 38 33

29
38

22 2l 10 13 13 6 l4
9 10 8
35 33 18 20 22 12 27 19 27 16

l8

8

WHOLESALE AUTOMGl'IVE
(Paper acquired)
Total volume ot paper acquired •••••••••••••••••••••••

6

9

9

7

9 10

9

9 lO

9

9 ll

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

3

5

6

4

4

4

3

3

2

2

4

3

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

20

31

37 39

50

50 46

50

64

30

32 22

3

33 47

12

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

20 23

24 29 31

30 41 32 30

34

Total retail, other consumers' goods ••••••••••••••••

26

28

30 38 42 39 42 47 41 49 42 37

36

FUrniture, radios, pianos, etc., Total ••••••••••••
F\lrni ture . •.•.•.....•.......•••...•.•...........
Radios, pianos, other musical instruments .......

34
48
22

35

27 31 33

28 28 23 27

2l

35

27 31

28

Refrigerators & other household appliances, Total.
Refrigerators (gas and electric) ••••••••••••••••
Other household appliances, •••••••••••••••••••.•

8 12 18
6
13 12 18

22 26 1'5

Residential building repair and modernization •••••

35 40 48

54 77

Miscellaneous retail••••••••••••••••••••··~·······

51 65

•

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

.,

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

!/

3

3

27 64

22

33

28

28 2)

2'!{

24 26 30

24 26 30 21

12 12 15

9 16

9

26 15 14 12 12 15

9 16

9

94 92 115 100 69

73

67 101 87

14

81 89

78 86 125

5

3

2

41 38

37

22

5

33

2

2

28 27

75
2

94 75 80
2

2

7

88
4

38 157 54 54 194

Current Statistical Service

Indexes are derived by caJ.culati.!l8 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 financed orb volwu
of paper acquired by the same companies during the preceding month, and by linking these percentage8to
the indexes for the preceing month.
The indexes for 11Total retail automotive," "Total wholesale automotive," and ."Total retail, other consumers 1 goods" are based on all figures reported for these it.ems resardl.ess of whether or not breakdowns could .be supplied,
3-31353




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Page 4
SALES FINANCE COIIPANIES

Table 4.--Automotive and Diversified F.lnancing
Vol11111e of Paper Acquired During Februar.r 1944 and Balances Outstanding Febl'\\&1'7 29, 1944
Vol111110 of paper acquired
durin~r February· 1944
B.r compani..
reporting
B.r all
companies
outstandi~ ·
balances a,

Class of paper

Total retail aut,c:moti ve • ••••••••••••••••••••
Total wholesale automotive •••••••••••••••••••
Total wholesale - other than automotive,,, ••
TOtal retail - other consumers' goods ••••••••
Inclustrial, commercial, and farm equipnent •••
Total sales

!I

'W

tin~cing •••••••••••••

$16,465,074
13,566,835
257,889
4,432,718
l.gJ.6~2

$36,266,168

$16,112,346
13,495,037
214,967
4,329,385

Olltstaodinc

bl.l.uoes
Pobru&1'7 29,
1944 !I

bal&ACel

nos, 928, s16

'il

15
22

60,154,072
754,740
54,407,824

28
8

6.~.602

~

.227,369,754

16

1,~2~.828

$35,677,633

Batio papv
acquired to
outst1Ad1111

I

Data are based on figures from sales finance companies able to report both toheir paper acquired an4 tbell'
Olitetanding balllliCes.
Ratios obtained b,r dividing paper acquired (column 2) b.r outstanding balances (column 3).

Table 5.--Automotive Financing
Number of Cars Financed and VolWII!I of Paper Acq,uired During Februar7 1944
Paper acquired

Number of cars

I

Class of paper

Percent
Number

ot

volume

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

J!....iQ2

!QQ.

116.2~2.1!!2

Hew passenger cars •••••••••••••••••••••••••
Used passenger cars ••••••••••••••••••••••••
Used commercial cars •••••••••••••••••••••.•

727
284
29,949
545

2
1
95
2

690,144
590,899
14,567,383
40.3,763

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

~

!QQ.

tn.~2 1 !!le

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

3,377
11,450

23
77

2,562,556
8,770,290

lew commercial cars • •••••••••••••••••••.•••

Percent

Dollar

ot

total

!I

!QQ.
4
4
90
2

!I

~

23

77

!I Data are based

on reports from sales finance companies prOYiding a brealcdollll ot their .-•taU llld wholel&le
.automotive financing. These amounts a;re less than those repo;rted in table 4 due to the exclusion of ICIM
data tor which breakdowns •re not available.

Table 6.--Diversitied Financing
VolWIIB ot Paper Acquired During Februar.r 1944
Percut.

Class ot paper

ot

•

total
~&11

- other consWIIBrs• goods:
Parniture, radios, pianos, and otoher musical instruments.,,.
Refrigerators ancJ. other houaehold appliances, ••.•••••• ,,,,,,.
118sidential building repair and modernization, ••••• , • , , , • , • ,
111:scellaneoua retail ••••... ~ ................................ .

!ot.al ret&il - other conau.mers• goods •.••••.•••.••••...••••.•.•
!ot.al wholesale- other than automotive~ ••••••••••••••••••••••

Industrial, commercial, and farm equipnent ••••••••••••••••••••
Total diversified tinancing •• ,,,,,,,,,,,
Bureau of t.he Census

!/ Data are based oo reports

10
2
36

$627,496
124,668
2,188,386
1 14J6.012
$4,.376,569
257,889
1 1 543 1 652

al

y

.6,178,UO.

on

4

~

100

Current Statilitic&l Sonic•

from sales finance companies providing a bl'eakdo11l ot their retail t11l11AC1.nc ot
other conswun• goOde. This amount is less than that reported in table 4 due to the uclusion ot . . .
data tor which breakdowns were not avaUable •

. 3-31363 l



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