Full text of G.20 Sales Finance Companies : March 24, 1942
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IWtli BURG~ Current Statistical Service .. . ·SAI.Jr8 ·liHANCE CQUPARIBS January 1942 liBRARY · ·A decrease of 78 .percent, from December 1941 to· January 1942, in the amount of new automotive tinancins tor both the nUJDber of cars aiid tor the dollar volume of J)aper acquired was announced toda,v The number of uaed cars financed wae down 31 percent tor the by J. C, Capt, Director of the Census. same. period, while the dollar volume of used car paper acquired was dOwn onl.r 24 percent, Ou.tstandin& balances tor·retail automotive paper was down 7 percent, but the outstandins balances tor wholesale automotive paper wae up 12 percent. These data clearl.r refiect the trends in automotive tinanctns res'liltins fr!XA the restrictions on the sale of new cars and on the gnnttns of credit tor install..llent sales financtns. It should benoted, however, that the volume of acquired during Jamtar.r includes the financiq of a number of new cars sold durin&· earlier periods, paper As indicated in the chart, outstandins balances tor retail automotive financins rose from an index of 100 on January 31, 1940 to 134 on January 31, 1941 and to 139 6n January 31, 1942. The index for Januar7 ~~ 1942 was 10 points lower, however, then for December 31, 1941. ~TANDING BALANCES RETAIL AU'l'OJIO'fiVE FINANCING ~N i· DEC~ER 31, 1939. • 100 DEX ... 20,0 150 100 • 50 0 1940 1941 1942 This monthlT report redlaces the one for •Automobile F.t.nanciif which has been p11blished .b7 the Bureau of the census. theta from :340 s&!es ?LUiiice comp&iiles '"Wblished as reported without seasonal or other adjustments, Forty-five states and the District of Columbia are represented, and all types of sales finance caapanies eqaged in automotive and diversified financins of wholesale and retail saies ha'n been included. s The purpose of this survey of the sales finance caapanies is to. show the current trends month . The dollar volwnes reby month of their outstandiq balances and of their volume ot paper acquired, ported mq not be used to indicate the total amount of financing by all of the sales finance companie& While the purpose is to show current trends, the data are related, as far as possible, to comparable data for previous ,years by 1118ans of index numbers. An:r use of these indexes to calculate current volUMS tor all sales finance caapanies 111118t ,be qualified by assumptions ae to the representativeness ·of the sample. To show· trend from one month t:o another,; schedule.s ·from an.r one co.lllp8D1' IIII1Bt be available tor both months. Thu schedules sent in for January were matched with the automobile finance schedules for December to obtain the current trends of auto~bile tinanctns. · Furthermore,. since the base period for the index ot outstaadin& balances is December 31, 1939, and since schedules could not be matched for December 1939 and January 1942, the index of·the outstandins balances as of January 31, 1942 1 was obtained by calculatins the percentage decrease of the outstanding balances, as shown by the matched schedules, and by linking this· percentage to t_he index previousl.r derived tor December 1941. The indexes for outstandins .balances .as of December 31 for 1939, 1940, and 1941 were calculated from the data sent in on a supplementary report to the monthlt report tor January 1942, while those for retail automotive as of the end of the month t.o.r January to November, 1941, were calculated traa the data in the "Automobile Financing" report previoual.r published by the Bureau of the Census, These indexes are reported in table•l. The current trend tor the volume of automotive paper acquired is reported in table 3. Inde:~G es tor the mcinths of January 1940, and of January and December of 1941, were derived trom data published in the "Automobile Financins 11 repart,with the 1939 .monthly average as the base. The index tor January 1942 was obtained by linking the percentage decrease in the volume of paper acquired as shown by matched schedules to the index for Decemb8r 1941. · :-Jt 9;; 3': r-;::~~;:c; Page 2 SALES FINANCE C<JO>ANIB8 Table 1.- Index of Trends in Outstanding Balances by Class of Paper December 31, 1939 • 100 .. · Total all Date sales financiM_ . Wholesale other coniiUIIIers' goods Retail other consumers' goods 100 100 100 100 169 119 129 97 - --- Wholesale automotive Retail automotive !/ In<1ustr1a.l, conunercial and farm equipment 1939 - Dec. 31 ••... 100 100 1940 - Dec. 31 ••••• 136 132 1941 - Jan. 31 ••••• - Feb, 28 ..... -Mar. 31 ••••• - 175 217 148 - 196 232 143 91 ,31 ••••• --. 30 ••••• 31 ..... 152 134 138 142 152 163 171 176 178 170 164 157 149 1942 - Jan. 31 .•..• 147 139 0 !/ - Apr. -May -June - July - Aug. - Sep. - Oct. - Nov. -·Dec. - )0 ••••• 31 ..... 30 ••••• 31 ••••.• 31 ••••• - 3() ...... - . - -- - - - - - - -- - ,; -- - -- ---- -- --- ·- - 93 Data based on an inquiry conducted in February 1942, except those for January 31 through November 30, 1941 on retail automotive paper, which are derived from the report 11 Automobil.e Financing" previously published by the Bureau of the Census, Not all sales finance companies hold all five classes of paper. Consequently, the number of companies whose data are included in any one item varies. Table 2.- Outstanding Balances by Class of Paper Based on Reports from a Sample of Sales Finance Companies December 31, 1939, 1940 and 1941 and January 31, 1942 Dec. 31,·1939 Class of paper Dollar volume (add 000) !/ % of total Dec. 31, 1940 Dec, 31, 1941 Dollar % of volume total (add 000) uo.uar volume % of (add 000) total volume (add 000) % of total 15 295,732 18 9,150 1 9,752 1 17 301,332 17 291,959 17 1 11,810 1 11,604 1 67 1,000,064 65 1,126,798 Wholesale automotive •••••••••• 151,045 14 254,938 17 264,628 goods, ...•...•.•........•••• 4,211 El 5,008 El Retail--other consumers' goods 204,026 18 263,981 Industrial, commercial and farm equipment •••••••••••••• 12,704 1 12,351 Total •••••••••••••••••• 1,127,723 100 !f UO.l..l.&r 63 755,737 Bureau of the Census Jan. 31, 1942 66 1,052,112 Retail automotive ••••••••••••• Wholesale--other consumers' !/ 1,536,343 100 1,713,718 100 i,66i,i59'!!! 100 Current Stat~st~cal Serv~ce The data in this table represent 302 sales finance companies, not all of whom hold all five classes of paper. The relation between retail automotive and retail other consumers' goods for 1939 thus 'varies slightly from that reported in Census of Business: 1939 Sales Finance Companies. B/ Less than 0,5 percent. £1 This amount is less than that reported in table 6 .due to the inclusion in the latter table of data from companies that could not report their outstanding balances for the previous years. J-JI1J' •• Page 3 SALES FINANCE COMPANIES Table 3·- Index of Trends in Volume of Automotive Paper Acquired 1939 Monthly Average 100 = !I Retail financing Period New cars 1naex or dollar volume Index of number Used cars Index of Index or dollar number volume Total E/ Index of number Index of dollar volume Wholesale financing indeX of dollar volume 1939- Monthly average •• 100' 100 100 100 100 100 100 1940 -.January •••.••••••• 93 95 a6· 89 88 93 151 1941- January •••••••••• 117 130 115 129 ll6 130 189 - December •.•••••••.. 64 77 88 llO 80 92 158 1942- Januar,y •••••••••• 14 ' 17 61 84 45 47 82 §/ Data for January 1942 based on reports for that month from 222 companies who had also reported for December 1941. Data for 1939, 1940 and 1941 derived from the report "Automobile Financing" previously published by the Bureau of the Cena1s. E/ Data in tl:ds column based on reports from canp&niss providing the breakdown in the two preceding columns and also reports from eanpanies who could not supply a breakdown between new and used cars. ( Table 4.- Automotive Financing . Volume of Paper Acquired During January 1942 !I Volume Number of cars Class of paper . Total retail automotive ••••••••••••••••• New ~assenger cars •••••••••••••••••••• New trucks, buses, tractor-trailers ••• Used Percent of total Number Percent of total Dollars 125;304 100 $54 .766 .452 12,641 10 9,666,816 18 2 3,013,143 5 2,261. !Y 100 cars ••••.•••••••••••••• 104,813 83 39,843,646 73 Used trucks, buses, tractor-trailers .. 5,589 5 2,242,847 4 passe~gar Total wholesale automotive •••••••••••••• ' . New cars (passenger and commercial) ... Used cars (passenger and colllll8r ci al) •• Bureau of the Census !f Bf - - - $84.888.863 !Y 100 75,072,638 88 9,816,225 . 12 Current Statistical Service Data based on ·reports from sales finance companies providing a breakdown of their retail and wholesaie automo\ive financing. Not all sales finance companies hold each class of pape.r, consequently the number of companies ·whose data are included in any one item varies. These amounts are less than those reported in table 6 due to the inclusion in the latter table of the data from sales finance companies that could not provide a breakdown. . J-JifJ3 Page 4 SALES FINANCE· COl.IPANIES Table 5.- Diversified Financing Volume of Paper Acquired During January 1942 !/ Volume of paper acquired Class of Paper Percent of total Dollars Retail- other consumers' goods: F'tlrni ture • ..•••.•.......••-..................,• • . • . . $ Radio, television sets, pianos and other musical instrwnent s . •••..•.•••••••.••••••.••••..•••.••• Refrigera,.tors, (gas and electric) ••••••••••••••• Other household appliances ....................... Residential building repair and moderniz~tion; •• Miscellaneous ..retail .••.. .· •••••••••••••••••••••• 314,694 3 421,128 1,282,686 759,954 2,)54,44f1•, l,Olt,lt,,202 4 13 8 23 10 cons~ers' good.s. • • • • • • • • • • • • 6,177,111 Total wholesale - other ctinsumers' good.s. • • • • • • • • • 3,210,600 31 .Industrial, commercial, and farm equipment •••••••• 822 613 8 Total diversified financing ••••••••••• $i0,210,324 100 Total retail - other El 61 !I Data based on reports from sales finance companies providing a breakdown of their retail financ-~ng of other ccmsumers' goods. Not all sl!les finance companies hold each class of paper. Con·sequently,the numi:Ser of companies whose data are included in any one item varies. E/ This amount is less than that reported in table 6 due to the inclusion in the latter table of the data from companies that could not provide a breakdown. Table _6.- Automotive and Diversified Financing !/ Volume of Paper Acquired During January 1942 and Balances Outstanding January 31, 1942 Volume of paper acquired durin£ January 1942 ' Class of paper Outstanding balances January 31 1942 Dollars Percent of total Dollars Total ret.ail automotive •••••••••••••••••••• $ 55,109,971 31 $1,203,582,833 Total wholesale ·automotive ••••••••••••••••• 103,005,974 59 295,978,585 Total wholesale - other consumers' goods ••.• 3,183,893 2 9,814,841 Total retail - other consumers' goods ..•••• 12,611,589 7 292 ,206.{108 - Industrial, commercial and, farm equipment •• 802 647 1 11 626:"292 ·"""":'.. ' , ~- ··,,..,~· -~~ Total sales financings •••••• ,.,,. $174,714,074 100 $1,813,202,659 .q- c·, ... :::~ --~~: . Bureau of the _Census Current Statistical Service· !/.Data based on reports from companies reporting comparable figures for outstanding balances and tor paper acquired. Not all companies hold each ·qlass of. paper. Consequently, the number of companies Whose data are included in any one item varies. J·}lf33