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.




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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

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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.




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