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

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SALES FINANCE CO"" ..'IES

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MAY1944

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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

.

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~ ""

~

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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.




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