Full text of G.20 Sales Finance Companies : August 1, 1942

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Immediate
Release
August 1, 1942

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A decrease ~~ent id the number of new passenger cars financed in June 1942 compared with
the preceding month was shown by data reported by sales finance companies, according to an announcement
released today by J. c. Capt, Director of' the Census. The dollar volume of' paper acquired in the financing
of' new passenger cars decreased 7 percent. In the financing of' new commercial cars, the number increased
10 percent while the dollar volume increased 15 percent. For used passenger car financing, the number and
the dollar volume gained 7 percent and 8 percent respectively. The number of' used corrunercial cars financed
during June 1942 was up 3 percent, the dollar volume 9 percent, compared with May 1942.
During June 1942, retail- automotive outstandings held by sales finance companies decreased 10
percent.
Outstanding balances were down 10 percent during May, 9 percent during March, 9 percent during
April, 8 percent during February, and 7 percent during January.
The steady downward trend of these balances since August 1941 is shown by the chart presented below.
OUTSTANDING BALANCES
RETAIL AUTOIDTIVE FINANCING
DECEMBER 31, 1939 = 100

INDEX

200

150

I0 0

50

0

1940

1941

1942

The volume of paper acquired by sales finance companies in wholesale automotive financing decreased 31 percent for new cars and 21 percent for used cars from May to June of this year.
The outstanding balances for wholesale automotive financing decreased 7 percent during June,continuing the downward trend from the high in February.
In retail diversified financing by sales finance companies for June 1942 compared with the preceding month, the largest decrease (42%) was in the volume of financing for household appliances, closely
followed by a 40 percent drop in the financing of refrigerators. The financing of furniture and of radios,
pianos, and other musical instruments decreased 24 percent .and 10 percent respectively. The financing of
residential building repairs and modernization decreased 23 percent, after having shown increases in the
previous three months.
Industrial, corrunercial, and farm equipment financing was down 42 percent.
In
wholesale diversified financing (other than automotive) the volume of paper acquired was down 23 percent
for June compared with May 1942.
Diversified outstanding balances held by sales. finance companies showed further reductions
during June 1942. Outstanding balances were reduced 6 percent for retail financing of' other consumers'
goods, 3 percent for industrial, commercial, and farm equipment, and 15 percent for wholesale diversified
financing (other than automotive).
The ratios of paper acquired during June 1942 to the outstanding balances as of' June 30, 1942
were 4 percent for retail automotive, 4 percent for wholesale automotive, 14 percent for wholesale diversified (other than automotive), 4 percent for retail -- other consumers' goods, and 4 percent for industrial, commercial, and farm equipment.
These data on the current trends of sales financing for the month of June were based on reports
for May and for June from 280 sales finance companies. Neither the dollar volumes nor the indexes should
be used to indicate the total amount of financing by all sales finance companies in the United States.
The data are published as reported without adjustment for seasonal or price fluctuations.
The data included in tables 5, 6, and 7 of this release are not comparable to those published for previous months,
since monthly reports were not received each month from identical sales finance companies.
All indexes
for June were obtained by calculating the percent changes from May to June, as shown by data on reports
for both months from the same sales finance companies, and by linking these percentages to the indexes
previously deri v.ed for May 1942.



Page 2.

SALES FINANCE COMPANIES
Taple 1.-- Automotive and Diversified Financing
Index of Trends in Outstanding Balances by Class of Paper!/
December 31, 1939 100

=

Total
all

Date

sales
financing

1939 - Dec. 31 ••••

100

1940 - Dec. 31 ••••

136

1941-

May

31 ••••

June
July
Aug.
Sep.
Oct.
Nov.
Dec.

,30 ••••

31 ••••
31 ••••
3() ••••

31 ••••

.

--

-

30 ••••
-31 ••••

152

l942- Jan. 31 ••••
- Feb. 28 ••••
-Mar. 31 ••••
- Apr. 30 ••••
-May 31 ••••
- June ,30 ••••

147
143
135
125
115
105

Retail
automotive

Wholesale
automotive

Wholesale
other
than
automotive

Retail
other
consumers'
goods

100

100

100

100

100

132

169

140l!/

129

131

163
171
176
178
170
164
157
149

-

-

-

-

-

250- .!21
262 Bl
293 .§!
252 §I
191 .§!
153

196
234
233

139
128

116
105
95
8.6

----

--

175

222

w
130

208
193

Industrial,
commercial
and farm
equipment

.!21

148

147

.!21

143
139
135
131
126
118

144
152
155
156
153
148

.!21.
§I
§I

.w.§!

!/ Indexes for May 31, 1941 through November 30, 1941 are derived from data in the "Automobile Financing" report previously published by the Bureau of the Census. Indexes as of December 31 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 !or 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.
E/ Revised.

Table 2.-- Automotive Financing
Index of Trends in Number of Cars Financ&~d, 1942 !/
January 1942 100

=

Class of paper

_January February

March

April

May

June

Total retail autOmotive ••••••••••••

100

70

78

64

59

61

New passenger cars •••••••••••••••

100

22

43

40

58

52

New commercial cars ••••••••••••••

100

27 pJ

45

Used passenger cars ••••••••••••••

100

77

83

Used commercial cars •••••••••••••

100

Bureau of the Census

74
,

.!21

.!21

69 ~.!21

.!21

23

68
55 pJ

60

64

45 pJ

46

31

.!21

25

Current Statist1cal 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 "Total retail automotive" are based on all figures reported for this item regardless
of whether or not a breakdown could be supplied.
E/
Revised.



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SALES FINANCE COhlPANIES

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

=

January February

Class of paper

March

April

May

Ju.ae

Total retail automotive •••••••••••••

100

62

73

57

55

57

New passenger cars •••••••.•••.••••

100

22

46

42

60

55

New commercial cars ...............

100

28

Used passenger cars ..... ... ·· .....•

100

73

81

Used commercial cars ••••••••••••••

100

76 ..!21

69

Total wholesale automotive ••••••••••

100

93

39

19

16

12

New cars (pass. and comm.) ••••••••

100

100

37

17

14

10

Used cars (pass. and comm.) •••••••

100

67

66

40

37

29

.!21

48

.!21

34

.!21

62

.!21

58

25

.!21

29

55

.!21

47

60

.!21

51

sf Indexes are derived by calculating the percent changes in the volume of automotive paper ac-

.Q/

quired by sales finance companies during each month from the volume acquired by the same co~
panies 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 •
Revised.

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

=

Class of paper

January February

March

April

May

June

Total retail, other consumers'goods •••

100

103

137

123

108

80

Furniture •••••••••••••••••••••••••••

100

88

122

110

97

73

Radio, television sets, pianos ·and
other musical instruments •••••••.•

100

108

141

72

37

33

Refrigerators, (gas and electric) •••

100

147

250

132

105

63

Other household appliances •••••.•••••

100

115

169

116

80

46

Residential building repair and
modernization •••••••••••••••••••••

100

92

119

127

128

98

kiscellaneous retail •......••.....••

100

144

155

131

131

142

Total wholesale -except automotive •••

100

128

.!21

106

equipment . .............•...........•

100

124

w

158 ..!21

Total diversified financing •••

100

111

w

130

Industrial, commercial, and farm

Bureau of the Census

.!21

.!21

52 ..!21

24 ..!21

18

.!21
.!21

49

.!21

85

107 ..!21

86

162

Current

62
...

Stat~st~cal ~erv~ce

sf Indexes are derived by calculating the percent changes in the volume of diversified 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 other consumers' goods" are based on all figures
rE')•Orted for U:is item regardless of whether or not a b.reakdown could be supplied •
.!2/ Revised



Page 4.

SALES FINANCE COMPANIES

Table 5.-- Automotive and Diversified Financing
Volume of Paper Acquired During June 1942 and Balanc~s Outstanding June 30, 1942
Dollar volume of paper acquired
during June 1942
By all companies
By all
. reporting
companies
outstanding
balaAces !I

Class of paper

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

$30,269,978
11,577,287
826,223
9,536,519
667.884

$29,774,445
11,523,650
770,602
9,339,158
659 600

Outstanding
balances
June 30,
1942 !I

Ratio of paper
acquired to
outstanding
balances W

$716,144,872

4
4
14
4
4

312.~8,733

5,577,236
231, 593,138
17.530.902

-

$1,282,914,881
$52,067,455
4
152,877,891
Total sales financings •••••••••••
Data are based on f~gures from sales finance companies able to report both their paper acquired and their
outstanding balances.
gj Ratios obtained by dividing paper acquired (column 2) by outstanding balances (columnJ),

!/

Table 6.-- Automotive Financing
Number of Cars Financed and Volume of Paper Acquired During June 1942
Number of cars
Percent
Number
of
total

Class of paper

Paper acquired
Percent
Dollar
of
volume
total

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

72,193

!QQ

12819471027

New passenger cars •••••••••••••••••••••••
New commercial cars •••••••• , •• ; • , .. , .. , , ,
Used passenger cars ••••••••••••••••••••••
Used commercial cars .••••••••••••••••••••

6,137
576
62,508
2,972

9
1
86
4

4,831,625
688,109
22,167,819
1,259,474

-

1101 545 1 79§

--

7,518,011
3,027,784

Total wholesale automotive ••••••• ; •••••••••
New cars. (passenger and commercial) •••••
Used cars (passenger and commercial) ••••

!/

-

-

!I

!QQ

17
2
77
4

!/

100
71
29

Data are base~ on reports from sales finance companies providing a breakdown of their retail and wholesale
automotive financing, These amounts are less than those reported in column 1 of table 5 due to the inclusion in that table of data from some sales finance companies that could not provide a breakdown.

Table 7.-- Diversified Financing
Volume of Paper Acquired During June 1942
Class of paper

Dollar volume

Percent
of
total

Retail- other consumers' goods:
Furriiture .........•......•••••......•..•.•.•. • •.

$241,878

4

Radio, television sets, pianos and other
musical instruments ••••••••••••••••••••••••••••
Refrigerators, (gas and electric), ••••••••••••••
Other household appliances ••••••••••••••••••••••
Residential building repair and modernization •••
Miscellaneous retail. ............. , ............. .

82,164
527,820
165,705
2,749,827
7801810

1
9
3

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

4,548,204
826,223
667,884

45

...1!

!I

75
14
11

Total diversified financing •••••••••••••
100
$6,042,311
Current Statistical Service
Bureau of the Census
!f 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 column 1 of ta~le 5 due to the inclusion
in that table of data from some sales finance companies that could not provide a breakdown.



•