Full text of G.20 Sales Finance Companies : October 30, 1942
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DEPARTMENT OF COMMERCE • 1- BUREAU OF THE CENSUS SALES FINANCE COMPANIES September 1942 • The number of new passenger cars financed b,y sales finance companies decreased 20 percent in September 1942 compared with August of this year, according to an anno\Ulcement released tocta¥ by J. C. Capt,Director of the Census, rhe dollar volume of paper acquired in new passenger car financing, however, decreased only 18 percent. In used passenger car financing, the number of cars decreased 22 percent, the dollar volume of paper acquired, 21 percent. In new commercial car financing; month ago comparisons show that the number of cars decreased 46 percent and the dollar volume of paper acquired, 52 percent, while the number and the dollar volume of used commercial car financing decreased 18 percent and l4 percent respectively, As of September 30, 1942 the volume of• retail automotive outstandings held by sales finance companies was 12 percent less than as of August 31, 1942,· The index has now dropped to 59, showing that these outstanding balances have been reduoed to approximately one-third of the volume held by sales finance companies on August 31, 1941, when the index had reached 178, an all-time high. OUTSTANDING BALANCEs RETAIL AUTOMOTIVE FINANCING DECElw:BER 31, 1939 = 100 IN OEX 200 150 100 50 1940 1941 1942 The volume of wholesale automotive paper acquired by sales finance companies during September 1942, when.compared with August 1942, showed that the wholesale financing of used passenger and used commercial cars decreased slightly but that the wholesale financing of new passenger and new commer.cial cars remained at approximately the same level as during August 1942• .The volume of outstanding balances for this type of paper, however, decreased 10 percent from August 31, 1942 to September 30, 1942. A comparison of the retail diversified financing by sales finance companies during September 1942 ~th their respective volumes recorded in August of this year showed furniture financing at approximately the same level, but decreases were registered in the volume of financing for residential building r.epair and modernization (2%), other household appliances (4%), radios and other musical instruments (10%), and refrigerator.s (14%), In wholesale diversified financing the volume of paper acquired by sales finance companies was 15 percent less in September than in August of this year, As of September 30, 1942, compared with August 31, 1942, the volume of diversified outstanding balances held by sales finance companies decreased 7 percent for the retail·financing of other consumers' goods, 8 percent for industrial, commercial, and farm equipment, and l~ percent for wholesale diversified financing (other than automotive), The ratios of the paper acquired during September 1942 to the outstanding balances . as of September 30, 1942 were 4 percent for re~ail automotive, 4 percent for wholesale automotive,l2 percent for wholesale--othe1 than automotive, 3 percent for retail•-other consumers' goods, and 2 percent .f'~r industrial, commercial, and farm equipment, These data on the current trends of sales financing during September 1942 were based on reports from 264 sales finance companies, Neither the dollar volumes nor the indexes should be used to indicate the total amo\Ult of financing by all sales finance companies in the United States, The data are published as reported w~thout adjustment for seasonal or price fluctuations. The figures presented in tables 5, 6, and 7 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 September were obtained by calculating the percent changes from August to September, as shown by data on repc)rts for both months from the same sales fin.ance CQIII~~ and by linkil18 these percentages to the indexes pr~iously derived for August 1942. 3-363~ Page 2 SALES FINANCE COMPANIES Table 1.-- Automotive and Diversified Financing Index of Trends in Outstanding Balances by Class of Paper December 31, 1939 100 = Date Total all sales financing Retail automotive Wholesale 1939 - Dec. 31 •••..•• 100 100 1940 - Dec. 31 ....... 136 132 - 152 178 170 164 157 149 147 143 135 125 115 105 95 84 75 139 128" 116 105 95 86 77 67 59 1941 - Aug. Sep. Oct, Nov. Dec. 1942- Jan, Feb, .lwiar, Apr. -May - June -July - Aug. - Sep, 31 •••.••• 30 •••.••. 31 •.....• 30~ ...... 31 .. ..••..• 31 ......• 28 •••.•.. 31 ......• 30 ....... 31 ..•...• 30 •• ,., ••• 31 ••••••• 31 ••••••• 30 ••••••• -- • !/ Wholesale other than automotive Retail other consumers• go.ods Industrial, commerc-ial, and farm equipment 100 100 100 100 169 140 129 131 -- -175 --- --- -- 250 148 147 196 234 233 222 208 193 175 151 137 262 293 252 191 153 130 110 97 85 143 139 135 131 126 118 110 103 96 144 152 155 156 153 148 140 134 124 automoth~ - - !I Indexes for August 31, 1941 through November 30, 1941 are derived from data in the 11 Automobile Indexes as of December 31 Financing 11 report previously published by the Bureau of the Census, 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 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. Table 2.-- Automotive Financing Index of Trends in Number of Cars Financed, 1942 January 1942 100 = June July August Sept, 59 61 61 54 42 40 58 52 53 50 40 45 31 23 25 22 19 10 77 83 68 60 64 63 55 43 74 69 55 45 46 42 34. 28 Class of paper Jan, Feb, March April Total retail automotive •••• 100 70 78 64 New passenger cars ••••••• 100 22 43 New commercial cars •••••• 100 27 Used passenger cars •••••• 100 Used commercial cars ••••• 100 Bureau of the Census Jl !/ May Current Stat~stical Service Indexes are derived by calculating the percent changes in the number of cars financed by sales 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 11 Total retail automotive 11 are based on all figures reported for this item regardless of Whether or not a breakdown could be supplied, I ·Page 3 SALES FINANCE COMPANIES • Table 3.- Automotive Financing Index of Trends in Volume of Paper Acquired, 1942 January 1942 • 100 .. !I Jan, Feb, March April May June July August Sept. Total retail automotive •••••• 100 62 73 57 55 57 58 52 4l New passenger cars ••••••••• 100 22 46 42 60 55 57 54 45 New commercial cars •••••••• 100 28 48 34 25 29 25 23 11 Use4 passenger cars •••••••• 100 73 81 62 55 60 60 54 42 Used commercial cars •••••••• 100 76 69 58 47 51 47 39 34 Total wholesale automotive •••• 100 93 39 19 16 12 12 10 10 New cars (pass. & comm.) •••• 100 100 37 17 14 10 8 7 7 Used cars (pass. & comm,) ••• 100 67 66 40 37 29 29 28 27 Class of paper ! J1 Indexes are derived by calculating the percent changes in the volume of automotive paper acquired by sales finance companies during each month from the volume acquired 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" and for "Total wholesale automotive" are based on all figures reported for these items regardless of whether or not breakdowns could be supplied, Table 4.-- Diversified Financing Index of Trends in Volume of Paper Acquired, 1942 January 1942 100 = Jl May June July Aug. Sept. 123 lOS so 59 54 52 122 110 97 73 66 59 59 lOS l4l 72 37 33 30 31 28 100 147 250 132 105 63 34 22 19 ' Other household appliances ••••••••••• 100 115 169 116 so 46 31 37 36 Residential building repair and modernization ....................... 100 92 119 127 128 98 84 77 76 Miscellaneous retail ••••••••••••••••• 100 144 155 131 131 142 124 117 135 Total wholesale, except automotive ...... 100 128 106 52 24 18 12 11 9 •••••• 100 124 158 162 85 49 46 31 27 Total diversified financing ••••••• 100 lll 130 107 86 62 47 42 40 Jan, Feb. Total retail, other consumers' goods, •• 100 103 137 Furniture •••••••••••••••••••••••••••• 100 88 Radios, pianos, and other musical instruments •••••••••••••••• 100 Refrigerators; (gas arid electric) •••• Class of paper Ind11strial, c0JIIIIl8rcial, and farm equipalent • •••••••••• ~ •••••••• !' • B11rea11 of the Cens11s Jl March April C11rrent Statistical Service Indexes are derived by calculating the percent changes in the volume of diversified paper acquired, by sales finance companies d11ring each month from the volume acquired by the same companies d11ring the preceding mon.th, and by linking these percentages to the indexes for the preceding month. The indexes 'for 11 Total retail other consumers' goods" are based on all f'ig11res reported for this itc regardless of whether or not a breakdown could be s11pplied. http://fraser.stlouisfed.org/ 3-36119 Federal Reserve Bank of St. Louis Page 4 SALES FINANCE COJ4PANIES Volume ot Paper Table 5.-- Automotive and Diversified Financing during September 1942 and Balances Outstanding September 30, 1942 Ac~uired Volume ot paper acquired duri_n,g_ Sl!l tember 1942 B.r companies By all reporting companies outs tan~ balances a Class ot paper Outstanding balances September 30, 1942 !f. Rat.io paper .acquired to outst:.an~ balances b Total retail automotive ....................... Total wholes&le automotive ••••••••••••••••••• Total wholesale~ other than automotive •••••• Total retail- other consumers' goods .••••••• Industrial, c0111118rcial, and farm equipment ••• Total sales tinancings ••••••••••••• $21,121,581 $20,591,102 $487,055,343 9,368,075 9,288,418 220,340,215 481,322 444,122 3,677,553 6,296,613 6j022,721 187,200,239 344,279 315,313 14,890,550 $)7,6ll,870 $36,661,676 $913,163,900 !I Data are based on ligures from sales finance companies able to report both their paper acquired .(IUtstandirig balances. . H/ Ratios obtained by dividing paper acquired (column 2) by outstand.ing balances (column 3). 4 4 12 3 2 4 and their Table 6.-- Automotive Financing Number ot Cars Financed and Volume ot Paper Acquired' during September 1942 I Number ot cars Class ot paper Percent ot Number total Total retail automotive ••••••••••••••••••••• , 47 ,9?-4 New paasenser cars • ••• ~ ••••••••• -. ~ ••••••••• 4,593 238 41,291 1,802 New cOJDDercial cars •••••••••• ·• ••••••••••••• · Used pasSenger cars •••••••••••••••••••••••• Uaed cOIIID8rcial cars • ••••••••••••.•••••••••• Totil'wholesale automotive ••••••••••••••••••• - New cars (passenger and commercial) •••••••• Used cars (passenger and commercial) ••••••• -- -100 9· 1 86 4 - - Paper aCquired Percent Dollar volume . ot total !I 3,782~638 -19 270,751 15,436 ,480· 839,933 1 76 4 $20,329,802 $8,313.;J90 100 !I -100 5,565 ,49'4 2,747,896 67 33 !I Data are based ·on reports trom sales finance companies providing a breakdown ot their retail and wholesale automotive financing.· These amounts are less than those· reported in table 5 due to the exclusion ot some data tor which breakdowns were not available. Table 7.-- Diversified Financing Volume ot Paper Acquired during September 194.2 Percent Class ot paper Dollar volume ot .total Retail - other consumers' goods:· hrnitiure . .•..•.••••.•.•. : • • , •••.•••••••••• Badios,pianos, & other musical instruments. Refrigerators, (gas and electric) ••••••• ·•. Other household appliances ••••• ·• ••••.•••••• Residential bldg •. repair & modernisation •• ·lliacellane01ia retail •• •..•• ~ •.•••• '! • • • • • _•• I 'l'ot&l retail - other consumers 1 goods ........ whole.sale - other than automotiVe ... .. Induat.rialj c0111118rci8J., and farm equip~~~nt .. Total diversified financing ••••••• 'l'ot.~ Bureau of the Census $205J053 65,989 161,734 131,698 5 2 4 3 2~135,702 50 17 705 '7'74 $3 ,405. 950 481,322 344,279 $4,231,551 !I 81 ll ·s ..,._ 100 Current St.atistical SerYice !/Data are ba"d op reports from sales finance companies. prodding a breakdown of their retail tinancinc of other CODaumsrs' aoods. This amount is leu than t.hat. repori;ed in table 5 due to the exclusion of aOM data tor whicti breakdowns were not available •. 1-Jaaet •