Full text of G.20 Sales Finance Companies : June 3, 1942

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June 3, 1942 ·

NOV 11 iS4Z
U8RARY

DEPARTMENT OF COMMERCE
BUREAU OF THE CENSUS

Current
Statistical
Service

SALES FINANCE COMPANIES

April 1942
Go~ "'t:
A decrease of 7 percent from March 1942 to April-1942 in the number of new passenger cars financed by sales finance companies was announced today by J. C. Capt, Director of the Census.
The dollar
volume of paper acquired in the financing of new passenger cars decreased 9 percent.
For new commercial
cars, the number financed and the volume of paper acquired decreased 30 percent and 31 percent respectively.
Used passenger car financing decreased 18 per~ent for the number of cars and 23 percent for the dollar
volume, while used commercial car financing decreased 21 percent and 16 percent respectively.

•

During April 1942, retail automotive outstandings of sales fi.Dance companies decreased 9 percent•
which is identical to the percentage ~ecrease during the previous month. The steady downward trend of the
automotive outstanding balances since August 1941 is shown by the chart p~esented below •

IN OEX

OUTSTANDING BALANCES
RETAIL AUTOMOTIVE FINANCING
DECEMBER 31, 1939 = 100

200r---------------~-------------,--------------~

50r---------------+---------------~--------------~

The volume of paper acquired by sales finance companies m wholesale financing decreased 53 percent for new cars and 40 percent for used cars from March to April of this year. The outstanding balances
for wholesale automotive financings decreased 5 percent during April, marking the beginning of th1 downward swing from the high in February.
'
In retail diversified financing, the volume of paper acquired by sales finance companies decreased in all cases except for residential building repair and modernization, which increased 7 percent,
in the period from March to April of 1942. The financing of radios, pianos, and other musical instruments
decreased 49 percent, closely followed by a drop of 47 percent in the financing gf refrigerators. · The
financing of household appliances,of furnitur~and of industrial, commercial, and farm equipment decreas.ed 32 percent, 10 percent, and 9 percent respectively.
In wholesale diversified financing the volume of
paper acquired by sales finance companies was down 41 percent from March to April of this year.
Diversified outstanding balances heldbysales finance companies recorded only slight reductions
during April. Retail outstanding balances for other consumers 1 goods were reduced 3 percent for the fourth
successive month, while the balances for industrial, commercia+, and farm equipment were down 6 percent •

•

The ratios of the paper acquired during April 1942 to the outstanding balances as of April 30,
1942 are 3 percent for retail automotive, 5 percent for wholesal~ automotive, 6 percent for retail-other
consumers' goods, 12 percent for industrial, commercial, and farm equipment,and 21 percent for wholesaleother than automotive.
These data on the current trends .of sales financing for the month of April are based on reports
for March and for April from 282 sales finance companies.
Neither the dollar volumes ·nor the indexes.
should be used to indicate the total amount of financing by all sales !inane~ companies in the .United
States.
The data are published as reported without adjustmen~ for seasonal or price fluctuations.
The
data included in tables 5, 6, and 7 of this release . are not comparable i:o those published . for previous
months, since monthly reports are not rec•ived each month from identical sales finance companies. All
indexes for April were obtained by calculating the percent changes from lofa.rch to April, as shown by reports
for March and for April from sales finance companies reporting co~arable data, and by linking tr.~se percentages to the indexes pr~viv~:ly derived for March 1~42.
3· .1'32'7(

Page 2.
SALES FINANCE COMPANIES

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

Total
all

Date

sales
financing

Retail
automotive

Wholesale
automotive

Wholesale
other
than
automotive

Retail
other
consumers'
goods

Industrial,
COllllllercial
equipment

f'arm

and

1939 - Dec. 31 ••••

100

1940 - Dec. 31.0 ••

136

132

169

119

129

1941- Mar. 31 ••••
- Apr. 30 ••••
-Kay 31 ••••
- June 30 ••••
-July 31 ....
- Aug. 31 ••••
- Sep. 30 ••••
- Oct. 31 ••••
- Nov. 30 .•••
- De.c·. 31 ••••

---

. --

---

175

217

--148

---

152

142
152
163
171
176
178
170
164
157
149

1942- Jan. .31 ••••
- Feb. 28 ••••
- llar. 31 ••••
-Apr. 30 ••••

147
143
135
125

139
128
116
105

196
234
233
222

232
275
242
199

143
139
135
131

---

•

91
91
91
B5

!/Indexes for January 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 for January
1942. Indexes for 1942 are derived by calculating the percent
changes of the outstanding
balances reported for each month from those reported for the previou& month,as shown by matched
schedules, and by linking these percentages to the index for the previous month.

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

January

February

March

April

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

100

New passenger cars •••••• ~ ••••••••••••••••••

100

. 40

New

COIDID.ercial cars • •••••••••••••••••••••••

100

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

100

Used commercial cars ••••.•.••.•••••••••••••

100

Class of paper

Bureau of the Census

Current Statistical Service

Indexes are derived by ·calculating the percent changes in the number of cars financed
each month from tllo.se ·financed !or tb"' previous month, 1!-S shown by matched schedul-es,
linking these percentages to the iudexes for the previous month. The indexes for "Total
automotive" are bc.sed c~ figures reported for this item regardless of whether or not a
down could be supplied.
,.

7~;lft

during
and by
retail
brPq.k-

•

Page J,
Table 3.-- Automotive Financing !f.
Index of Trends in Volume of Paper Acquired, 1942
January 1942 = 100
Class of paper

January

February

March

April

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

100

New passenger cars . .•......•.•...•..•.•·....

100

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

100

Used passenger cars ••••••••••••••••••••••••

100

Used commercial cars ••.•••••••.••••••••••••

100

Total wholesale automotive •••••••••••••••••••

100

19'

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

100

Used cars (passenger and commerciSl) •••••••

100

Indexes are derived by calculating the percent changes in the volume of automotive paper acquired du~ing each month from the volumes acquired during the previous month,
as shown by
matched schedules, and by linking these percentages to the indexes for the previous month, The
indexes for "Total retail automotive" and for "Total wholesale automotive" are based on figures
reported for these items regardless of whether or not a breakdown could be supplied,

Table 4.-- Diversified Financing !(
Index of Trends in Volume of Paper Acquired, 1942
January 1942 = 100
Class of paper

January

February

March

April

Total retail- other consumers' goods ••••••••

100

103

137

123

Furniture .........•....................•..•

100

122

110

musical instruments •••..•••••••••.••••.••

100

108

141

Refrigerators, (gas and electric) ••••••••••

100

147

250

132

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

100

115

169

116

tion ...... .............•.............••..

100

119

127

Miscellaneous retail •.•••.•••••••••••••••••

100

144

f. 55

131

Total wholesale- other than automotive ••••••

100

154

Industrial, commercial, and farm equipment •••

100

157

194

176

Total diversified financing ••••••

100

127

146

115

Radio, television sets, pianos and other

Residential building repair and moderniza-

Bureau of the Census
~

Current

Stat~stical

Service

Indexes are derive~ by ~alculating the percent changes in the volume of diversified paper ~c
quired during each month from-the volume acquireu during the previous month,as shown by matched
schedules, and by linking these percentages to the indexes for t:he previous month. The indexes
of ''Total retail other consumers' goodsH are based on figureo reported for this item regardless

cf whether or not a bre~~vW4 could be supplied •
http://fraser.stlouisfed.org/
• · - of
;:J ,:;.;;'I
Federal Reserve Bank
St. Louis

Page 4
SALES FINANCE COMPANIES

Table 5.-- Automotive and Diversified Financing
Volume of Paper Acquired During April 19~ and Balances Outstanding April 30; 1942·
Dollar volume of paper acquired
durillB_ April 1942
Outstanding
Ratio of paper
Class of paper
balances
By all companies
acquired to
By all
reporting
April 30,
outstanding .
companies !/
outstanding
1942 'pj
balances~
balances 'pj
Total retail automotive •••••••••••••••••• ~.
Total wholesale automotive ••••••.•••••••••••
Total wholesale - other than automotive ••••
Total retail - other consumers' goads ••••••
Industrial, commercial and farm equipment ••

$29,841.719
18,493,114
1,422,379
14,616,574
1,108,264
$65,488,050

$29,385,435
18,416,680
1,340,170
14,325,449
1,092,910
$64,560,644

8877,982,918
358,345,499
6,491,522
257,050,978
9,414,114
$1,509,285,031

3
5

6
1.2

Total sales financings •••••••••••
4
!/Data are based on reports from all sales f1nance companies regardless of whether or not they·could supply
a breakdown and whether or not they could report their outstanding balances.
·
B/ Data are based on figures from sales finance companies able to report both their paper acquired and their
outstanding balances.
·
~ Ratios obtained by dividing paper acquired by outstanding balances for an identical group of firms.
/

Table 6.-- Automotive Financing !/
Number of Cars Financed and Volume of Paper Acquired During April 1942 •
Number'of cars
Volume

Class of paper

Number

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

.&m

New passenger cars ...•.•.• •.•••.••••••.•.•

4,699
718
67,478
3,492

New commercial cars •.••••.•••••••••••••••
Used passenger cars •..•.••••••••••••.••••

Used commercial cars •••••••••••••••••••••

Percent
of
total

100
6
1
88
5

Percent
of
total

Dollars

122. ~~6.10~
3,622,243
776,167
23,731,609
1,416,085

100
12
3
80
5

Total wholesale automotive •••••••••••••••••
!QQ
$1Z1;2061668 !2/
New cars (passenger and commercial) ••••••
13,272,672
77
Used cars ipassenger and commercial) •••••
23
4,033,996
!I Data are based on ~eports from sales finance companies provi~ing a breakdown of their retail and wholesale
automotive financing.
E( These amounts are less than those reported in column 1 of table 5 due to the inclusion in that table of
data from the sales finance companies that could not provide a breakdown.
Table 7.-- Diversified Financing!/
Volume of Paper Acquired During April 1942
Class of paper

Dollar volume

Percent
of
total

$267,792

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

Radio, television sets, pianos and other
~

musical instruments ••.•••••.•••••••••••...•••••

Refrigerators, (gas aqd electric) ••• ~···••••••••
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 •••••••••••••
Bureau of the Census

184,011
1,104,491
407,013
3,557,649
591,_,825
6,112, 781 'pj
1,422,379
1,108,264
$8,643,424

13
5
41
7

71
16
13
100
Current Statistical Service

Data are based on report~ frc..w aales finance companies providing a breakdown of their retail financing of
other ccnsumers' goods.
_
Digitizedb/forThis
FRASER
amour.t is less than that reported in column 1 ot ~able 5 d~c to the inclusion in that tao1e of data
http://fraser.stlouisfed.org/
·- from the sales finance companies ~hat could not provide a bre~aown. ·
Federal Reserve Bank of St. Louis