Full text of G.20 Sales Finance Companies : August 31, 1942

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~lt'JfffA ~~~~8~-R1l MEN T 0 F C0 MME RCE
. ~flt;..,L~I.,:,,·r~lfRUU OF THE C£NSU$

SEP -9(I J042
S.ALES FINAICE CQliPjJIIIS.
D
Jllly 1942
LIBRARY

1

Sal.ea Finuoe Companiea reportid""2 percent 110re new puaeqer oara financed dllring J1117
_ 1942 thaD daring the preced.i.Dg month of this year, according 1jo aD annoancement releaaed. tod.q by
J. C. Capt, Director of the C.enlllla. The Jl117 in<iex for U. number of new care financed. wu 53, ehow1.111 a 47 percent drop aince J110uary 1942, when the index was 100. The dollar Tolume of paper acqairecl in ·nw puee111er car tinanoiDB also increased 2 percent oYer Jlllle 19421 the index rising. t110
poiata to 57, a.bowing Ju;J.y TOl.uae 43 percent l ..s tbu in January 1942. In llaed passenger oar tinanoill8, the m1111ber decreased 2 percent from ~11118 19421 bllt ttui dollar Tolum.e showed litUe chaDBe•
I n - cOIIIIIleroial car fi.naDciDB, 1110nth ago comparillons shlllf that the nwaber decreased 13 percent,
8Dd the dollar T01um.e, 14 percent; while the number 8Dd dollar To1ame of llaed co11111ercial oars d.eoreaaed 9 percent and 8 percent, reapecti..-eq.
Retail automotive olltstandings -.u.d by sales fin&Aoe CCIIIIP&niee were redllOed an average of
10 percent d11ring Jl117 1942.
A year ago comparison ahowa a 56 percent drop in these Olltatandin€
~ancea, as shown b7 an index of 176 for Jl117 31, 1941 and an iadex of 77 for J1117 31, 1942.
OOTST ANDIOO BAL.Ul':ES
RETAIL AUT(ILOTIVE FDIANCIMG
DEcmmm 31, 1939 100

=

INDEX

200

50

r---------------,_--------------~--------------~

0
19 41

The TOlume of wholeeale autanotive paper acqllired b7 aales finance companiea decrea..cl
l2 perout for new cars and 3 percent for lllled cara.
The olltstanding balances for wholesale tinanoiq ucreaaed 9 percent daring JlllT 1942 to an index of 175, showing an 11 percent dcline from
Jaau.&rT 31, 1942, when the index wu 196.

In retail diversified financing, all clasaea of paper acq11ired by sales finance companies
ahond decreaaea for Jl117 1942 compared with Jane 1942. The largeat decrease (47%) occurred ~n the
fiauciDB of retrt&eratora, followed by other household appliancea {32%) 1 residential bllilcling re- ·
pair and aod.ernisation (14%), radios and other llllllical inat.rOMnta (10%), fllrniture (9%), and ind•
.trial, CC.Iercial, and farm eqllipment (7%). In wholesale diveraitied fi.liancing, the volWile of paper
acquired. waa down 34 percent from Jlllle to JlllT of this 1ear.
Indexes on diversified financing for
JalT, and for the previous months of 1942, are presented in table 4.
Diversified o11tatancl1DB balances held by sales finance companies were further reduced in
w1ue d11ring Jl117. 011tatanding balances were down 7 peroent for the. retail financing of .other con__.,, ,ooda 1 5 percent for induetrial, coDD.ei'cial, and. farm eqlliplie~t, and 16 percent for wholeBale cli't'eraified financiDB (other than automotive). Indexea en outatanding bal.ancea for Jllly, &i!l
for prOTiollB 110ntha, are included in table 1.
The ratios of the paper

acqllired d11ring Jl117 1942 to the o11tat&nding balances ae of J1117

31 1 1942 were 5 percent tor retail a11tomotive, 4 percent for wholesale &lltomotive, ll percent for
wboleaale--other than 111tomot1ve, 3 percent for retail--ot..ber oonaum.era 1 goode,
indut.rial, cOIIIIIlllroial, llftd farm eqllipment.
·

and 3 percent for

These data on the Cllrrent trends of aales financiDB for the month of Jl117 were baaed on·
reporta for Jlllle and for Jllly !rem 270 aales finance companiea. Jleithor the dollar vol111111a nor the
indexes ahollld be lllled to indicate the total •Oilllt of tinanciDB bT all aal.ee finance ccmpaniea in
the United Statea.
The data are ptlbliahed as reported with011t adjut.nt !or aeaaonal or price
fi11ctuat.ione. ' The fig11re11 presented in tablea 5, 6, and 7 of t.Aia nleaae are not coaparable to
those publlahed tor prer.io11a 110.otha, since mont.bly reports were not received each 110nth from identical aalea fin&DCe oompaniea. All indexea !or Jl117 were obtained 'V caloalating the percent chaDBea
fl'Oil Jlllle to J1117, u shown by datam reports tor both months froa the aae sales finance oompaniee;
8Dd by linking these percentage• to the indexes pred0118J¥ derived for Jlllle 1942.



Page 2.
SALES FINANCE COl!PANIES

Table 1.-- Automotive and Diversified Financing
Index of Trends in Outstanding Balances by Class of Paper
December 31, 19~9
100

=

Total
all
sales
i'inancirul

Retail
automotive

Wholesale
automotive

Wholesale
other
than
automotive

- Dec. 31 •••••.•

100

100

100·

100

1940 - Dec, 31 •••••• ~

136

132

169

140

171
176
178
l70
164
157
149

----

175

----

250

196
234
233
222
208
193
175

293
252
191
153
130
110

19~9

--

1941- June 30, ••••••
-JUly 31 •••••••
~ Aug.
.,.. Sep.
-Oct.
- Nov.
- Dec,

31.•••••••

30 •••••••
~1 •••••••

-152

30 •• .- .•••

31 •.•••••

1942 - Jan. 31 •.••.••

139
128
116
105
95
86

147
143
135
125
115
105
95

;-Feb. 28 •••••••

-Mar. 31 •••••••
- Apr. 30 .••••••
- May 31 •......

-June 30 •••••••
-July 31 •• , ••••

77

!/

Retail
Industrial,
other
commercial
consumers• and farm
eou.i nm•n+.
ROods

'e/

'e/
262 'e/.

:w
:wy

'e/

100

100

129

131

-

---

91

--l4S

147W

143
139
135
131
126
118
110

144!?/
152 '9.1
155.'9./
156 !?/
153
148
140

....

-

w

!I

Indexes .for June 30, 1941 through Novembe~ 30, 1941 are derived from data in the "Automobile Financing 11 report previously published by the Bureau of the Census. Indexes as of December 31 for.
t,he 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 ~e derived by calculating the percent changes of the outstanding balancea 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 Financed, 1942
January 1942 = 100
Class of paper

January

February

March

April

Total retail automotive ••

100

70

78

64

New passenger cars •••••

100

22

43

40

New commerc:ial cars, •••

100

27

Used passenger cars ••••

100

77

Used commercial cars •••

100

74

Bureau of the Census

Jl
.2/

-

'e/

45

'e/

69

.21

68

83

.21

31

'e/

55

!/
June

July

59

61

61

58

52

53

25

22

64

63

46

42

May

23

.21

60

.21

45

.21

Current

Stat~stical Serv~ce

Indexes are derived by calculating the percent changes in the number of cars financed by s~es
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•
Revised.


3-3505?


Pqe 3.

SALES FINANClj: COUPANIES

Table 3.- Automotive Financing
.
Index o! Trends in Volume o! Paper Acquired; 1942
Janua.ry: 1942 100

=

!I

Feb.

March

April

~

June

J~

Total retail automotive •••• 100

62

73

57

55

57

58

100

22

46

42

60

S5

57

28.e/

48.e/

34'R/

25

29

25

62

55

60

60

47·.e/

51

47

Class of paper

Jan.

New passenger cars •••••••

New co11111ercial cars •••••• 100

100

73

Used .coDI!Iercial cars.; ••• 100

76

Total wholesale automotive.

100

93.

New cars (pass. & comm.).

100

100

Used cars (pass. & comm.) 100

67

Used passenger cars ••••••

. 81
'RI

69

----

w

58

w

w

39

19

16

.

l2

l2

)7

17

14

10

8

66

40

37

29

.29

J/ Indexes are derived

by calculating the percent changes in the volume ·of· autamotive paper acquired by sales finance companies dlll'ing each month from the volume acquired by the same ocm- ·
panies dlll'ing· the preceding month, and by linking these percentages to ·the indeus ·ror ,.:&;ae
preceding month. The indexes tor "l'otal retail autOJIIOt1ve 11 and for 11 To'tal wholesale· autclaoti'ie1
are based on all figures reported tor these items regardless of whether or not breakcklirns ocKLIA
be s11pplled.
W Revised.

Table 4.- . Diversified Financil!.g
·
Index o! Trends in. Volume ot Paper Acquired, 1942 !/
January 1942 = 100
Jan.

Feb.

March

Apdl

May

June

J~

Total retail, other consUm.ers 1goods.

1.00

1.03

1.37

123

1.08

80

59

Furni~ure••••••••••••••••••••••••

l.QO

88

1.22

110

97

73

66

Radio,televilion nts,pianos and
other mu.sical instruments ••••••

100

108

1.41

72

37

33

,.,

Refrigerators'· (gas lind electric).

100

147

250

1.32

105

63

34

other.household appliances •••••••

1.00

115

'1.69

ll6

80

.46

~

.modernization ••••••••••••••••••

1.00

92

119

327

1.28

98

84

Miscellaneous retail •••••••••••••

100

144

155

131

1.31.

1.42

124

Total wholesale, except automotive •• 100

l.28l!/

106.e/

24.e/

J.8

1.2

Indwstrial, camnercial, and farm
equ.iJ1118nt • ••••••••••••• ·•••••••••••

l24.e/

1.')8

l?l 1.62 w 85·.e/

49

46

lll.e/

130.e/

86.e/

62

47

Clau of paper

Residential building repair and

100

Total diversified financing ••• 100
Blll'eau of the Census

t

52.e/

107

w

Current Statistical Servioe

J/.Indexes are derived by calculating the percent changes in the volume of· diversit,t.ed paper acquired by sales finance companiu dlll'ing each month from the volume acquired by the suui companies dlll'ing the preceding month,. and by linking these percentages to the indexes tor. the
preceding month. The indexes tor "Total retail other consumers' goods" are based on all figlll'8s
reported tor this item regardless of whether or not a breakdown could be Sllppl.ied.
·
R/ Revised.




-BALES FINANCE COMPANIES

Table 5.-- Automotive and Diversified Financing
Vol.uae of Paper Acquired During July 1942 and Balances Outstanding. July 81, 1942
Dollar volU11118 of ·paper acquired
du
J
1942
By all ca.paniee
By all
reporting
companies
outstan
balancee a

Claee of paper

Total retail autOJDOtiye. ·• •••·•••••••••••••••
Total wholeeale. autCIIIIOtive ••••••••••.•••••••
Total wboleeale - otber than automotive ••••
Total retail - · other cons111111r1' goode. , , , , ,
lnduetrlal, CODIIercial and farm equipment ..
Total ealee financings ••• ,,,,,,,,

Outstanding ·
. balanc..

Ju17 81,

1942

!I

Ratio of paper
ao~red to
outetandi.ns ·
balances 9/

$30,245,087
10,996,904
548,448
7,010,426
554 466

t29,62l,840
10,930,563
. 496,343
6;812,428
503 659

1640. 612, 200

282,880,414
4,695,413
213,911,170
16 599 94

ll

149,355,331 •

$48,364,813

$1,158,698,691

4

5
4
3
3

!I Data are based on figures from alee finance companies able to report both their paper acquired and their
outstanding balances.
'9./ Ratios obtained b7 dividing paper acquired (column 2) by outstanding balances (column 3),

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

Class ·of paper

Paper acquiioed
Per.cent
Dollar
of
vo1111111
total

Total retail automotiv•••••••••••••••••••••

~

.!QQ

128 13§§ 1927

.!QQ

New paaaencer car••••••••••••••••••••••••
Rn COJIIIIroial care • •••••••••••••••••••••

6,092
490
60,171
2,710

9
1
86
4

4,813)214
581,127
1,158,473

17
2
77
4

-

-

1§1 763 1 532

.!QQ

6,318,354
2,445,178

72

Used paaeenaer ca.ra •• •••••••••••• • •••••••
Uaecl c~rcial care •• ••••.•....•••••••••
Total wholeaale automotive. • • • •• .-. • •••• •. •.
New cars (passenger and CDIII118rcial) •• ,, ••
Ueed care (passenger. and COI!Drcial) •,, •,

!I

-

21,803,113

28

Data are based ·on report• from salea finance companiea providing a breakdown of their. retail and wholenle
automotive financing. These amount.s are less than those reported in column l of table. 5 due to the inolu- .
lion in that table of data. from 1011111 salsa· finance cOmpanies that eould not provide a. breakdown.

Table 7.-- Diversi£ied Financing
Volume of Paper Acquired During July 1942
Percent

Class of paper

Dollar volume

· at

total
Retail - other conaUIIII8re 1 gooda:
Purn:1 ture It • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Radio, televilion seta, pianos and other
~aical instruments •••••••••••••.•.•••••••••••••
Refriseraiore, (gae and electric) ••••••••••••••

1212,053

5
2

Residential building repair and moderni~tion.,.
JU.aoellallloua ntall ••••••••••••••••.•••••••••••

73,904
276,524
109,073
2,356,714
639a908

Total retaU- other ooneWIIIrii' goode •••••••••••••
Total wholeeale -other than automotive ••••••••• ,,
Induatrial, c~rcial, and farm equip~~~~~nt.,,,,,,,

$3,668,174
548,448
554 1 466

Total.divereitied financing.,,,,,,,,,,,,

14,771,088

Other household apPliances ••••••••••••••••••••••

Bureau of the Cenaue

!/ Oate are

8
2

49

...l!
77
ll

..1&
100
Current Statietioal.Servioe

beeed on reporta from sales finance companies providing a breakdown of their retail financing of
other cona111111re 1' goode. This amount ia lese than that reported in column. 1 of teble 5 due to the inclusion
in that table of data from s011111 eales finance companies that could not provide a breakdom.

l-aOIW