Full text of G.20 Sales Finance Companies : October 31, 1944
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For Release October 31, 1944~- I NOV -4\944 U8RARY Current Statistical Serrlce BUREAU 01" THE CENSUS SAlES FINANCE CO.wPANIF8 SEPT &mER 1944 Q 0 \'U '/ \ Sales finance companies reported a decrease of 32 percent in the number of new passenger cars financed in September 1944 compared with the number financed the preceding month,and the dollar volume of paper acquired in this type of financing decreased 29 percent,according to an announcement released today by J. c. Capt, Director of the Census. A 19 percent decrease in the number of used passenger cars financed was reported, and the dollar volume was also down 19 percent. Sixty-nine 'percent more new commercial vehicles were financed in September than in August this year, and the value of this paper was 21 percent over that recorded in August. The number of used commercial vehicles was up 38 percent, and the dollar volume of such paper rose 36 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 September 30, 1944 was virtually the aaM as that reported at the end of August 1944. The index for these outstandings did not change, bat remained at 16 for the third consecutive month. OUTSTANDING BALANCES REI'AIL AUTOMOTIVE fiNANCING DECEMBER 31, 1939 • 100 INDEX 200 150 ~ _./ 100 50 0 I I 1941 I ~ ~ I I I I I I 1 l 1942 ""' "-..._ I I 1943 I I I l I 1944 Of the wholesale automotive paper acquired b,ysales finance companies during September 194... the volume for used passenger and collllll8rcial care was slightl,y (3%) over that reported for August 1944, while the volume for new passenger and commercial cars dropped 18 percent. The volume of outstanding balances for this type of paper showed a 5 pe~cent decrease from that held at the end of August 1944. For September 1944 compared with August 1944, in retail diversified financing, furniture, radios, and musical instruments registered a 7 percent increase in paper acquired; but residential building repairs and modernization fell off 7 percent, and refrigerators and household appliances decreased 27 percent. The financing of wholesale (other than automotive) transactions was 20 percent less than for August 1944, and the amount of industrial, commercial, and farm equipment paper dropped back 8 percent. Diversified outstanding balances held by sales finance companies at the end of September 1944 were increased 14 percent for wholesale--other than automotive, were up slightly (2C) for retail--other consumers' goods, and showed almost no change for industrial, coomercial, and .farm equipment. The index for total sales finance outstandings remained at 19 in September this year, showing no change for the fifth consecutive month. Paper acquired during September 1944 was 30 percent of the outstanding balances as of September 30, 1944 for wholesale automotive, 20 percent for wholesale--other than automotive,l5 percent for retail automotive, 14 percent for retail--other consumers' goods, and 5 percent for industrial, commercial, and farm equipment. .t These data on the current trends of sales financing during September 1944 were based on reports from 190 sales finance companies, and the dollar volumes should not be assumed to represent the total amount of financing by all finance companies in the United States. The data are published as reported, without adjustments for seasonal or price fluctuations. T!1e figures presented in tables 4, 5, and 6 of this release are not comparable to those published for previous months, since monthl,y reports have not been received each month from identical sales finance companies. All indexes for September were obtained by calculating the percent changes fro~ August '1944 to September 1944 as shown by data on reports for both months from the same sales finance companies, and by linking these percentages to the indexes previousl,y derived for August 1944. i'age 2 SALES FINANCE COMPANIES Table 1.--Automotive and Diversified Financing Index of Trends in OUtstanding Balances by Class of-Papery December 31, l931i1 • 100 · ,, Total all sales financing Retail automotive ·,iholesale automotive Wholesale other than automotive Retail other consumers' goods Industrial, cormercial, and ~arm equipment 1939 - Dec, 31 ........ 100 100 100 100 100 100 1940 -Dec. 31 •••.••• 136 132 169 140 129 131 1941 - Dec. 31 ••••••• 152 149 175 250 148 147 1942 - Dec. 31 ••••••• 53 37 112 40 76 61 1943 22 21 2() 20 14 14 14 47 45 42 8 7 7 36 34 32 36 33 35 13 40 8 30 27 19 18 18 18 19 19 19 19 19 13 13 38 37 37 37 36 34 10 10 12 29 29 10 10 12 26 31 30 31 32 32 33 27 27 Date ~ Sept,30 ••••••• - Oct. 31 ••••.•• - Nov. 30 ••••••• - Dec. 31 ••••••• 1944 - Jan. -Feb, - Mar. - Apr. -May -June -July 31 ••••••• 29 ••••••• 31 •••.••• 30 •••••.• 31 •.•.••• 30 ••••••• 31 ••••••• -Aug. 31 •••..•• - Sept.30 ••.•••• 13 13 14 15 16 16 16 11 11 11 26 25 27 26 25 24 24 24 24 25 ' !,/ 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 re·port form for January 1942, Succeeding indexes 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 linkirig these percentages to the indexes for the preceding month. Table 2.--Relative Importance of Loans Made by Sales Finance Companies, Septeniler 19.44 Volume of Paper Acquired During the Month and OUtstanding Balances at the End of the Month OUtstanding balances, end of month Paper acquired during month Amount Percent of total Amount Percent of total Total, all classes of paper!,/ ••••••••• $63,865,429 100 $244,570,602 100 Total loans .• , ••..................... IO 52 Business loans •.•..•.... ........... 32 1 842 1 755 6,145,773 26,696,982 42 79 1 1C9 1 444 40,436,214 38,673,230 33 17 16 Total sales financing!,/ ••••••••••••• 31,022,674 48 165,461, 158 67 Class of paper Small (personal) loans ••••••••••••• Bureau of the Census !/ Current Statistical ServicP. Included in this classification are only those firms -which, in addition to their sales financing operations, reported loan activities. \ /' I t BALES FINANCE COliP.ARii!'S . II Table :5.-Automotive and Divwa1tiecl Pu.ncing Index of Trends, 1943-1944 !I ' January 1942 • 100 . 1943 Item • +' 1944 . . . .• • • 8 i &i c. '":I (1). j il ..... :t j ,.. l I ~ • 1t• l eX RETAIL AUTOMOTIVE Total number of cars financed •••••••••••••••••••••••• Total volume of paper acquired••••••••••••••••••••••• 26 S2 31 39 39 28 Sl J8 38. 49 61 39 37 30 51 48 40 33 29 28 37 ~3 S2 28 S2 New passenger cars ••••••••••••••••• Number •••••••••• Paper acquired.-. 11 11 a 14 13 10 6 8 8 10 New commercial cars •••••••••••••••• Number •••••••••• Paper acquired •• 25 20 17 18 l3 12 5 8 Used passenger cars •••••••••••••••• Number •••••••••• Paper acquired •• 36 Used commercial cars ••••••••••••••• Number •••••••••• Paper acquired •• 6 14 9 10 8 8 10 9 12 12 11 12 16 12 27 ],.9 27 l8 18 19 17 24 26 24 23 31 31 44 38 23 6 8 6 9 6 a 9 9 12 13 6 8 6 8 ' 6 8 12 7 10 14 9 15 18 30 9 12 l3 11 15 13 16 20 24 31 52 26 29 :56 35 44 45 45 42 34 38 33 38 47 47 60 62 64 59 48 58 WHOLESALE AUTOMOTIVE (Paper acquired) Total volume of paper acquired •••• , •••••••••••••••••• 9 10 9 9 11 12 15 17 18 16 10 12 12 New cars (passenger and commercial) •••••••••••••••• 3 3 2 2 4 3 Used cars {passenger and commercial) ••••••••••••••• 39 50 50 46 50 64 3 6 4 5 4 77 79 88 74 40 5 4 51 52 DIVERSIFIED FINANCING (Paper acquired) Total diversified financing•••••••••••••••••••··~···· Total retail, other consumers• goods ••••••••••••••• 47 41 49 Furniture t radios t Jllll8ical instruments ••••••••••••• 23 27 24 26 30 21 21 20 23 21 21 22 23 Refrigerators and other household appliances •••••••• 12 12 15 Residential building repair and modernization ••••••• 94 92 115 100 69 73 74 77 111 129 118 142 131 -Mlscell8neoua retail•••••••••••••••••••••••••••••••• 125 75 94 75 60 88 64 65 66 58 61 99 llJ5 I~ Total wholesale, except automotive•••••••••••••••••••• Industrial, commercial, and farm equipment •••••••••••• . I 33 30 41 32 30 34 27 29 35 37 35 43 42 Bureau of the Census y 2 2 2 42 37 36 34 35 44 47 45 56 56 9 16 2 7 9 11 16 15 17 17 18 1.3 4 4 3 3 4 3 4 3 27 38 157 54 54 194 70 89 74 68 63 52 48 Current Statistical Service Indexes are derived by calculating the percent changes .in the number of care financed or the vol\111111 o! paper acquired by sales finance companies during each month !rom the number of care financed or the volume of paper acquired. by the same companies during the preceding month, and by linldng these percentage• to the indexes !or the preceding month. The indexes for "Total retal.l autoJa>tive, n 11 Total wholesale automotive, 11 and 11 Total retail, other Qonsumera 1 goods" are baaed on all figures reported !or theae itea regardless of whether or not breakdowns could be supplied. Page 4 \ SALJ!'S FINANCE CCJIPAIII!S Table 4.-Automotive and Diveni.(ied Ftn.lciJii ' Vollllll8 o! Paper AcqUired During Septtlliler 1944 and Bal.ano• ~tan4inl ~~r 10, 19. . '•.·· . .:.. VolWIIII o! papeZ' acquired · durillg SeptQber 1944 .. Clue o! paper By all c0111paniee repoZ'tiJig .. B7 compenj,.u repoZ'tina outetuldi~ Ou.tlitandl:na balancu September 10, 1944 !I Ratio · paper acquired to out•t~ bal.aaou balance• 39,532,048 809,322 49,429,8'12 4 1 723 1 249 ...! 140. 2'77 ,546 $39.084,234 .223,8'18,991 17 Tot8.1 retail automoti va •••••••••••••••••.•••• f20,520,084 12,319,2'10 'Total ~oleeale - other than automptive ••••• Total ret~- other consumere 1 goode ••••••• Induat-ri,al, colllll8rcirl., and !arm equipment •• total aales financing ••••••••••••• ·,. tl-29 .184,1500 8,948,360 287 1631 tJ,9,92'1,21S8 12.008.884 liS8,188 8,no,eoe 259 11523 Total. wholeeale automotive •••••••••••••••••• !/ Data 2~,201 liS 36 20 14 ' are baaed on tiguree from ealee finance compani•a able to report both their paper acquired and their outstanding balance•. ' optained by d1vidillg paper acquired ( colUIIIIl 2) by outetandina balance• ( oolUIIIIl 3). W Ratio• ,. -·· Table 5.-Automotive Financina NUmber o! Care Financed and Volu. o! Paper Acquired Durin& September 1944 Number o! care Claes o! paper Number Paper acquired Percent o! total Dollar volu. Total retail automotive ••• -•• , •••••••••••••• 3!5 1948 l:QQ 1!01 2158 1 0'18 New passenger cars ••••••••••••••••••••••• New COJIID8rcial cars •••••••••••••••••••••• Used paasenger cars, •••••• , ••••••• , •••••• Used commercial cars • , •••••••• , •••••••••• 481 '125 33,'189 953 1 2 94 3 5llol815 1,191,424 1'7,948,481 8015,008 Total wholesale automotive ••••••••••••••••• 1!5 1348 l:QQ 1101360 18'18 New care (paeeenger and colll!llrcial) ••• , , , Ueed cars (paesenger and commercial) ..... 5,288 10,060 34 68 3,1516,418 8,844,258 !I Percent of total !I w 3 8 88 3 !I l:QQ 34 88 Data are based on reports !rom sales finance companies providillg a breakdown o! their retail and wholeeale automotive financing. These IUJI)unte are less than tboee repoZ'ted in table 4 due to the excluaion o! 11011111 data for which breakdowns were not available. Table e.--Diversified Financing Volume of Paper Acquired During September 1944 Class of paper Retail -other consumers' goode: Furniture, radios, pianos,and other IIIUIIical instl'UIIIInte •• Refrigerators and other houeehold appliancee ••••••••••••• Residential building repair and modernization, ••••••••••• W.Scellaneous retail, •••••• ,.· •••••••• ··~, ••••••••• ,, •• , ••• Dollar volWIIII • .,40,'7'13 1'15,881 4,042,8158 1 1 9'10, 8!53 Total wholesale- other than automotiv. •••••••••••••••••••••• Industrial, coJJUDSrcial, and farm equipment.~, ••• , •••••••••••• .6.930,145 202,201 28'1 ,831 Total diYereified !inancing, ••••••••••• .., ,419,9'1'1 Total retail- other consumers' goods •••••••••••••••••••••••• Bureau of the Censua !I Percent of total 10 2 54 !! !I 93 3 _! 100 Current Statiatical ServiC?e· Data are based on reports !rom sales !inance companie• providillg a breakdown o! their retail financing o! other coneumers 1 goods, This amount is leu than that reported in table 4 due to the excluaion o! 1011111 data for which breakdowns were not available. \