Full text of G.20 Sales Finance Companies : July 3, 1944
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DEPARTMENT OJI' COMMERCE: For Release July 3, 1944 rtl I. .. Current Statistical Service BUREAU OP' THit CENSUS -,\..·· ~ \=~~~'~ ~. ·~:--:'·. \\" C.: 'G"~:'o~\.. r-'· It~ ,,,. C\ t, T\ SALES FINANCE CO"" ..'IES ...~ "\";:)""''-' MAY1944 \\\ ..,." ~\)\,~t_,_\-:-\ \.;;)~.:>.,_:.>Y \ .' Sa1es fi . companies reported a gain of 36 percent an the number of new passenger cars financed in May 1944 comrare with those financed the preceding month, and the dollar volume of paper acquired in this type of ~inancing increased 37 percent, accordine to an announcement released today by J. C. Capt, Director of the Census. A 26 p:~rcent increase in the number of used passenger cars financed 'II&S reported, &long with a dollar volUIIIl up 29 percent. Forty-three percent more new commercial vehicles were financed in May than in April this year, and the value of this paper was 28 percent more than that recorded in April. The nUI!iler of used co11111ercial vehicles waa up 31 percent, and the dollar volume of such paper rose 43 percent. Data contained in this report are based on a sample survey conducted by the Bureau of the Census. The volume of retail automotive outstandings held by sales finance companies on May 31, 1944 was The index for these outstanding& . changed 6 percent larger than that reported at the end of April 1944. from 13,for April this year, to 14, for M~--the first rise noted since August 1941. OUTSTANDING BALANCES RETAIL .A,UTOllOTIVE FINANCING IECEMBER 31, 1939 = 100 INDEX 200 150 ~ . / ........ 100 • 50 0 ~ I I J I I I I 1941 I I I "'~""' I'-- I l 1942 I .I I 1943 I I 1944 Of the wholesals automotive paper acquired byosales finance companies citring May 1944, the volume for used passenger and commercial cars was ll percent higher than that reported for April 1944, while the volume for new passenger and commercial cars dropped back 30 percent. The volume of outstanding balances for this type of paper showed a 4 percent decrease from that held at the end of April 1944. For May 1944 compared with April 1944, in retail diversified financing, residential building repairs and modernization registered a gain of 45 percent i.n paper acquired; furniture, radios, and musical instruments gained ~5 percent; while refrigerators and household appliances dropped back 5 percent. The financing of industrial, commercial, and farm equipnent decreased 17 ~rcent, but paper acquired for the wholesale lines (other than automotive) was down only slightly (3%) fran the volume reported in April 1944. Diversified outstanding balances held by sales finance companies at the end of May 1944 were increased slightly (3% and 2%, respectively) for wholesale-other than automotive-and industrial;commercial;- and farm equipment,but showed a small (3%) decrease for retail-other consumers' goods. This month, tor the first time since December 1941, the index,which is carried each month in this report as table 1, indicated a higher outstanding balance for totlp.l sales financing than was registered for the preceding month. Paper acquired during Mq 1944 was 33 percent of the outstanding balances as of May 30, 1944 for wholesale automotive, 25 percent for wholesale--other than automotive, 22 percent tor retail automotive, 11 percent for retail--other consumers' goods,and 8 percent for industrial,commercial,and farm equipment. I These data on the current trends of sales financing during May 1944 were based on reports fran 195 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 previous months, since monthly reports have not been received each month from identical sales finance companies. All indexes for M.a,y were obtained by calculating the percent changes from April 1944 to Mq 1944 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 tor April 1944. Pagel SALES FINANCE COMPANIES ~able !.--Automotive and Diversified Financing ·Index ot '!'rends in Outstanding Balances by Class ot Paper December 31, 1939 • 100 !f ,Wholesale Retail other other than eonsUJilers 1 autamotive goods ~otal Industrial, e011111!8rcia1, and tam equipment all sales financing Retail automotive Wholesale automotive 1939 -Dee. 31 ••••••• 100 100 100 100 100 100 1940 - Dee. 31 ••••••• 136 132 169 140 129 131 1941 - Dec. 31 ••••••• 152 149 175 250 148 H:'l 1942 - Dec. 31 ••••••• 53 37 112 40 76 61 1943 -May 31 ••••••• - June 30 ••••••• - J"uly 31 ••••••• -Aug. 31 ••••••• - Sept.30 ••••••• -Oct. 31 ••••••• -Nov. 00 •••• -Dec. 31 ••••••• 30 12 11 10 47 44 46 27 25 23 22 21 20 20 18 16 15 15 14 14 14 13 40 41 8 8 38 36 39 36 7 7 34 33 42 40 32 8 30 35 2'1 1944 - ;ran. - Feb. -Mar. - Apr. 19 18 18 18 19 13 13 13 13 14 37 3'1 37 36 10 10 12 29 27 26 25 24 Date Oil • • - 'May ~ 31 ••••••• 29 ••••••• 31 ••••••• 30 • •.•••• 31 ••••••• 70. 63 59 52 47 45 38 11 11 •• 44 26 31 30 31 32 Indexes as ot December 31 tor the years ot 1939, 1940, and 1941 are based on figures reported by sales finance companies on a supplementary report torm which accompanied the regular monthly report form for ;ranuary 1942. Succeeding indexes are derived by calculating the percent changes ot the outstanding balances reported by sales finance companies tor each month from those reported by the same companies tor the preceding month, and by linking these percentages to the_indexes tor the preceding month. • Table 2.--Relative Importance ot Loans )@de by Sales Finance Companies, May 1944 Volume or ~per Aequ~ed During the Month and Outstanding Balances at the End of the Month Paper acquired during month Class ot paper Outstanding balances, end or month Percent Amount ot Percent Amount total Total, all classes of paper !/••••••••• !74 327 761 'l'otal loans •••••••....•. •.•.•.....•.. Small (personal) loans ••••••••••••• Business loans ••••••••••••••••••••• 36.871.528 6,454,713 30,416,815 9 Total sales financing !/••••••••••••• 37,456,233 Bureau of the Census !f ot total 100 1!237 289 902 100 50 ~ 41 77.246.139 39,573,745 37,672,394 so 160,043,763 67 17 16 Currsnt Statistical Service Included in this classification are only those firms which, in addition to their sales financing operations, reported loan activities. ' Page 3 SALES FINANCE COMPANIES Table 3.--Automotive and Diversified Financing Index of Trends, 1943-1944 !/ January 1942 : 100 ' 1943 .. Item § i I» '3 .... .... . .... ~ 1944 p, ..; II) () (/) 0 r: ~ .; II) 1=1 . ....f.t .-i ~ "" ~ .c II) ~ I» ~ ~ I I RETAIL AUTOMOTIVE Total number of cars financed ••••••••••••••••••••••••• Total volume of paper acquired •••••••••••••••••••••••• 35 39 34 38 33 36 34 33 39 37 New passenger cars ••••••••••••••••• Number ••••••••••• Paper acquired ••• 30 36 23 28 19 23 New commercial cars •••••••••••••••• Number ••••••••••• Paper acquired ••• 12 Used passenger oars ••••••••• -••••••• Num.ber ••••••••••• Paper acquired ••• 36 37 40 42 35 4l 38 44 36 44 Used commercial cars ••••••• • •••••• • Number ••••••••••• Paper acquired ••• 21 10 33 18 13 20 13 22 11 13 15 28 32 26 31 32 38 31 38 39 49 6 8 6 9 6 8 9 12 12 7 lG 12 13 11 14 15 29 28 33 32 18 11 11 22 14 13 10 9 25 20 9 9 11 18 13 17 12 15 31 38 32 38 29 261 38 33 6 14 9 12 27 19 10 27 8 16 31 38 8 23 28 6 8 8 10 8 8 9 I a 18 36 47 35 47 44 60 10 . 9 19 17 12 24 WHOLESALE AUTOMOTIVE (Paper acquired) 17 18 Total volume of paper acquired •••••••••••••••••••••••• 7 9 10 9 9 10 9 9 11 12 15 New cars (passenger and commercial) ••••••••••••••••• 4 4 3 4 3 3 2 2 4 3 3 6 4 Used cars (passenger and commercial) •••••••••••••••• 22 33 47 37 39 50 50 46 50 64 77 79 88' Total diversified financing ••••••••••••••••••••••••••• 29 31 28 30 33 30 41 32 30 34 27 29 35 Total retail, other consumers' goods •••••••••••••••• 38 42 39 42 47 41 49 42 37 36 34 35 44 Furniture, radios, musica! instruments •••••••••••• 31 33 28 28 23 27 24 26 30 21 21 20 23 Refrigerators and other household appliances •••••• 22 26 15 14 12 12 15 91 16 9 11 16 15 Residential building repair and modernization ••••• 54 77 81 89 Miscellaneous retail •••••••••••••••••••••••••••••• ~01 87 78 86 125 Total wholesale, except automotive •••••••••••••••••• 5 3 2 2 2 Industrial, commerical, and farm equipment •••••••••• 38 37 22 28 27 DIVERSIFIED FINANCING (Paper acquired) Bureau of the Census af e e 94 92 115 100 69 73 74 77 11 75 94 75 80 88 64 65 66 2 2 2 7 4 4 3 3 38 157 54 54 194 70 89 74 Current Statistical Service Indexes are derived by calculating the percent changes in the number of ears financed or the volume of paper acquired by sales finance companies during each month from the number of cars financed or the volume of paper acquired by the same conpanies during the preceding month, and by linking these percentages to the indexes for the preceding month. The indexes for "Total retail automotive," "Total wholesale automotive," and "Total retail, other consumers• goods" are based on all figures reported for these items regardless of whether or not breakdowns could be supplied. Page 4 SALF.B FDiANCE COMPANIES Table 4.-Automotive and Diversified Financing Volume o:t: Paper Acquired During Ma7 1944 and Balances Outstanding May 31, 1944 Volume of paper acquired during May 1944 By companies B1 all reporting companies outetandi~ reporting balances Plass o:r: paper Outstanding balances May 31, 1944 !I Ratio paper acquired to outstanding balances '!J Total retail automotive •••••••••••••••••••••• Total wholesale automotive ••••••••••••••••••• Total wholesale- other then automotive •••••• Total retail- other consumers• goods •••••••• Industrial, commercial, and :t:arm equipment ••• $25,016,917 18,600,388 200,541 5,340,623 523,833 $24,616,529 18,543,297 170,640 5,255,032 498.920 $112,223,727 56,308,393 690,730 47,612,653 6,055,906 ...!! Total sales :t:inencing •••••••••••••• $49,682,302 $49,084,418 $222,891,409 22 ' 22 33 25 11 !( Data are based on :t:igures :t:rom sales :t:inance companies able to report both their paper acquired and their outstanding 'balances. '!J Ratios obtained b7 dividing paper acquired (column 2) b7 outstanding balances (column 3), .Table ~.-Automotive Financing Number o:r: Cars Financed and Volume o:r: Paper Acquired During J4a1 1944 Number of cars Class of paper Paper acquired Number Percent of total 45,416 100 i24,703,404 New passenger New commercial cars •••••••••••••••••••••••• Used passenger cars •••••••••••••••••••••••• Used commercial cars ..........•.•....•.•..• 1,046 325 43,341 704 2 l 95 2 1,026,930 735,735 22,485,047 455,692 Total wholesale automotive ••••••••••••••••••• 21,474 100 New cars (passenger and commercial) •••••••• Used cars (passenger and commercial) ••••••• 6, 768 14,706 32 68 Tbtal retail automotive •••••••••••••••••••••• • cars ••••••••••••••••••••••••• ~ Percent of total Dollar volume y $15,013,622 !Y 3, 782,_482 11,231,140 !QQ. 4 3 91 2 100 25 75 Data are based on reports trom sales finance companies providing a breakdown of their retail and wholesale automotive financing, These amounts are less than those reported in table 4 due to the exclusion of some data for which breakdowns were not available, Table 6.--Diversified Financing Volume o:r: Paper Acquired During May 1944 Class of paper Retail - other consumers• goods: Fur~iture, radios, pianos,and other musical instruments •• Refrigerators and other household appliances ••••••••••••• Residential building repair and modernization •••••••••••• Miscellaneous retail ••••••••••••••••••••••••••••••••••••• Total retail- other consumers' goods •••••••••••••••••••••••• Total wholesale- other than automotive •••••••••••••••••••••• Industrial, commercial, and farm equipment ••••••••••••••••••• TOtal diversified financing •••••••••••• guree.u of the Census !f Dollar volume 12 4 56 16 $728,207 209,562 3,395,398 982,247 $5,315,414 ~/ 200,541 523,833 $6,039,788 Percent of total 88 3 _1! 100 Current Statistical Service Date. are based on reports from sales finance companies providing e. breakdown of their retail financing of other consumers' goods, This amount is less than that reported in table 4 due to the exclusion of some data for ~hich breakdowns were not available. e e