Full text of G.20 Sales Finance Companies : October 30, 1942

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DEPARTMENT OF COMMERCE

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1-

BUREAU OF THE CENSUS

SALES FINANCE COMPANIES

September 1942

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The number of new passenger cars financed b,y sales finance companies decreased 20 percent in
September 1942 compared with August of this year, according to an anno\Ulcement released tocta¥ by
J. C. Capt,Director of the Census, rhe dollar volume of paper acquired in new passenger car financing,
however, decreased only 18 percent.
In used passenger car financing, the number of cars decreased
22 percent, the dollar volume of paper acquired, 21 percent.
In new commercial car financing; month
ago comparisons show that the number of cars decreased 46 percent and the dollar volume of paper acquired, 52 percent, while the number and the dollar volume of used commercial car financing decreased
18 percent and l4 percent respectively,
As of September 30, 1942 the volume of• retail automotive outstandings held by sales finance
companies was 12 percent less than as of August 31, 1942,· The index has now dropped to 59, showing
that these outstanding balances have been reduoed to approximately one-third of the volume held by
sales finance companies on August 31, 1941, when the index had reached 178, an all-time high.
OUTSTANDING BALANCEs

RETAIL AUTOMOTIVE FINANCING
DECElw:BER 31, 1939 = 100

IN OEX
200

150

100

50

1940

1941

1942

The volume of wholesale automotive paper acquired by sales finance companies during September
1942, when.compared with August 1942, showed that the wholesale financing of used passenger and used
commercial cars decreased slightly but that the wholesale financing of new passenger and new commer.cial
cars remained at approximately the same level as during August 1942• .The volume of outstanding balances for this type of paper, however, decreased 10 percent from August 31, 1942 to September 30, 1942.
A comparison of the retail diversified financing by sales finance companies during September
1942 ~th their respective volumes recorded in August of this year showed furniture financing at
approximately the same level, but decreases were registered in the volume of financing for residential
building r.epair and modernization (2%), other household appliances (4%), radios and other musical
instruments (10%), and refrigerator.s (14%),
In wholesale diversified financing the volume of paper
acquired by sales finance companies was 15 percent less in September than in August of this year,
As of September 30, 1942, compared with August 31, 1942, the volume of diversified outstanding balances held by sales finance companies decreased 7 percent for the retail·financing of other
consumers' goods, 8 percent for industrial, commercial, and farm equipment, and l~ percent for wholesale diversified financing (other than automotive),
The ratios of the paper acquired during September 1942 to the outstanding balances . as of
September 30, 1942 were 4 percent for re~ail automotive, 4 percent for wholesale automotive,l2 percent
for wholesale--othe1 than automotive, 3 percent for retail•-other consumers' goods, and 2 percent .f'~r
industrial, commercial, and farm equipment,
These data on the current trends of sales financing during September 1942 were based on reports from 264 sales finance companies,
Neither the dollar volumes nor the indexes should be used to
indicate the total amo\Ult of financing by all sales finance companies in the United States,
The data
are published as reported w~thout adjustment for seasonal or price fluctuations. The figures presented
in tables 5, 6, and 7 of this release are not comparable to those published for previous months ·since
monthly reports have not been received each month from identical sales finance companies, All indexes
for September were obtained by calculating the percent changes from August to September, as shown by
data on repc)rts for both months from the same sales fin.ance CQIII~~ and by linkil18 these percentages
to the indexes pr~iously derived for August 1942.


3-363~


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SALES FINANCE COMPANIES

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

=

Date

Total
all
sales
financing

Retail
automotive

Wholesale

1939 - Dec. 31 •••..••

100

100

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

136

132

-

152

178
170
164
157
149

147
143
135
125
115
105
95
84
75

139
128"
116
105
95
86
77
67
59

1941 -

Aug.
Sep.
Oct,
Nov.
Dec.

1942-

Jan,
Feb,
.lwiar,
Apr.

-May
- June
-July
- Aug.
- Sep,

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

31 ......•
30 .......
31 ..•...•

30 •• ,., •••
31 •••••••
31 •••••••
30 •••••••

--

•

!/

Wholesale
other
than
automotive

Retail
other
consumers•
go.ods

Industrial,
commerc-ial,
and farm
equipment

100

100

100

100

169

140

129

131

--

-175

---

---

--

250

148

147

196
234
233
222
208
193
175
151
137

262
293
252
191
153
130
110
97
85

143
139
135
131
126
118
110
103
96

144
152
155
156
153
148
140
134
124

automoth~

-

-

!I Indexes for August 31, 1941 through November 30, 1941 are derived from data in the 11 Automobile

Indexes as of December 31
Financing 11 report previously published by the Bureau of the Census,
for the 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 report form.for January 1942,
Indexes for 1942 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.

Table 2.-- Automotive Financing
Index of Trends in Number of Cars Financed, 1942
January 1942 100

=

June

July

August

Sept,

59

61

61

54

42

40

58

52

53

50

40

45

31

23

25

22

19

10

77

83

68

60

64

63

55

43

74

69

55

45

46

42

34.

28

Class of paper

Jan,

Feb,

March

April

Total retail automotive ••••

100

70

78

64

New passenger cars •••••••

100

22

43

New commercial cars ••••••

100

27

Used passenger cars ••••••

100

Used commercial cars •••••

100

Bureau of the Census

Jl

!/

May

Current

Stat~stical

Service

Indexes are derived by calculating the percent changes in the number of cars financed by sales
finance companies during each month from those financed by the same companies during the preceding month, and by linking these percentages to the indexes for the preceding month, The indexes for 11 Total retail automotive 11 are based on all figures reported for this item regardless
of Whether or not a breakdown could be supplied,




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SALES FINANCE COMPANIES

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Table 3.- Automotive Financing
Index of Trends in Volume of Paper Acquired, 1942
January 1942 • 100

..

!I

Jan,

Feb,

March

April

May

June

July

August

Sept.

Total retail automotive ••••••

100

62

73

57

55

57

58

52

4l

New passenger cars •••••••••

100

22

46

42

60

55

57

54

45

New commercial cars ••••••••

100

28

48

34

25

29

25

23

11

Use4 passenger cars ••••••••

100

73

81

62

55

60

60

54

42

Used commercial cars ••••••••

100

76

69

58

47

51

47

39

34

Total wholesale automotive ••••

100

93

39

19

16

12

12

10

10

New cars (pass. & comm.) ••••

100

100

37

17

14

10

8

7

7

Used cars (pass. & comm,) •••

100

67

66

40

37

29

29

28

27

Class of paper

!

J1

Indexes are derived by calculating the percent changes in the volume of automotive paper acquired
by sales finance companies during each month from the volume acquired by the same companies during
the preceding month, and by linking these percentages to the indexes for the preceding month. The
indexes for "Total ·retail automotive" and for "Total wholesale automotive" are based on all figures
reported for these items regardless of whether or not breakdowns could be supplied,

Table 4.-- Diversified Financing
Index of Trends in Volume of Paper Acquired, 1942
January 1942 100

=

Jl

May

June

July

Aug.

Sept.

123

lOS

so

59

54

52

122

110

97

73

66

59

59

lOS

l4l

72

37

33

30

31

28

100

147

250

132

105

63

34

22

19

' Other household appliances •••••••••••

100

115

169

116

so

46

31

37

36

Residential building repair and
modernization .......................

100

92

119

127

128

98

84

77

76

Miscellaneous retail •••••••••••••••••

100

144

155

131

131

142

124

117

135

Total wholesale, except automotive ......

100

128

106

52

24

18

12

11

9

••••••

100

124

158

162

85

49

46

31

27

Total diversified financing •••••••

100

lll

130

107

86

62

47

42

40

Jan,

Feb.

Total retail, other consumers' goods, ••

100

103

137

Furniture ••••••••••••••••••••••••••••

100

88

Radios, pianos, and other
musical instruments ••••••••••••••••

100

Refrigerators; (gas arid electric) ••••

Class of paper

Ind11strial, c0JIIIIl8rcial, and farm
equipalent • •••••••••• ~ •••••••• !' •

B11rea11 of the Cens11s

Jl

March April

C11rrent Statistical Service

Indexes are derived by calculating the percent changes in the volume of diversified paper acquired,
by sales finance companies d11ring each month from the volume acquired by the same companies d11ring
the preceding mon.th, and by linking these percentages to the indexes for the preceding month. The
indexes 'for 11 Total retail other consumers' goods" are based on all f'ig11res reported for this itc
 regardless of whether or not a breakdown could be s11pplied.
http://fraser.stlouisfed.org/
3-36119
Federal Reserve Bank of St. Louis

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SALES FINANCE COJ4PANIES

Volume ot Paper

Table 5.-- Automotive and Diversified Financing
during September 1942 and Balances Outstanding September 30, 1942

Ac~uired

Volume ot paper acquired
duri_n,g_ Sl!l tember 1942
B.r companies
By all
reporting
companies
outs tan~
balances a

Class ot paper

Outstanding
balances
September 30,
1942 !f.

Rat.io paper
.acquired to
outst:.an~

balances b

Total retail automotive .......................
Total wholes&le automotive •••••••••••••••••••
Total wholesale~ other than automotive ••••••
Total retail- other consumers' goods .•••••••
Industrial, c0111118rcial, and farm equipment •••
Total sales tinancings •••••••••••••

$21,121,581
$20,591,102
$487,055,343
9,368,075
9,288,418
220,340,215
481,322
444,122
3,677,553
6,296,613
6j022,721
187,200,239
344,279
315,313
14,890,550
$)7,6ll,870
$36,661,676
$913,163,900
!I Data are based on ligures from sales finance companies able to report both their paper acquired
.(IUtstandirig balances.
.
H/ Ratios obtained by dividing paper acquired (column 2) by outstand.ing balances (column 3).

4
4
12

3

2

4
and their

Table 6.-- Automotive Financing
Number ot Cars Financed and Volume ot Paper Acquired' during September 1942
I

Number ot cars
Class ot paper

Percent

ot

Number

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

47 ,9?-4

New paasenser cars • ••• ~ ••••••••• -. ~ •••••••••

4,593
238
41,291
1,802

New cOJDDercial cars •••••••••• ·• ••••••••••••• ·

Used pasSenger cars ••••••••••••••••••••••••
Uaed cOIIID8rcial cars • ••••••••••••.••••••••••

Totil'wholesale automotive •••••••••••••••••••

-

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

--

-100
9·
1
86
4

-

-

Paper aCquired
Percent

Dollar
volume

. ot
total

!I

3,782~638

-19

270,751
15,436 ,480·
839,933

1
76
4

$20,329,802

$8,313.;J90

100

!I

-100

5,565 ,49'4
2,747,896

67

33

!I Data are based ·on reports trom sales finance companies providing a breakdown ot their retail and wholesale
automotive financing.· These amounts are less than those· reported in table 5 due to the exclusion ot some
data tor which breakdowns were not available.

Table 7.-- Diversified Financing
Volume ot Paper Acquired during September 194.2
Percent
Class ot paper

Dollar volume

ot
.total

Retail - other consumers' goods:·
hrnitiure . .•..•.••••.•.•. : • • , •••.••••••••••
Badios,pianos, & other musical instruments.
Refrigerators, (gas and electric) ••••••• ·•.
Other household appliances ••••• ·• ••••.••••••
Residential bldg •. repair & modernisation ••
·lliacellane01ia retail •• •..•• ~ •.•••• '! • • • • • _••
I

'l'ot&l retail - other consumers 1 goods ........
whole.sale - other than automotiVe ... ..
Induat.rialj c0111118rci8J., and farm equip~~~nt ..
Total diversified financing •••••••

'l'ot.~

Bureau of the Census

$205J053
65,989
161,734
131,698

5
2

4
3

2~135,702

50

17

705 '7'74

$3 ,405. 950
481,322
344,279
$4,231,551

!I

81
ll
·s
..,._
100

Current St.atistical SerYice

!/Data are ba"d op reports from sales finance companies. prodding a breakdown of their retail tinancinc of
other CODaumsrs' aoods.
This amount is leu than t.hat. repori;ed in table 5 due to the exclusion of aOM
data tor whicti breakdowns were not available •.
1-Jaaet




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