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Immediate
~AWJOFOOW.ANrRSr:~fJ_ARTMENT OF COMMERCE
Release
ftr.O~ft.Atl><'~:••:;:-,, -r.;BUREAU OF THE CENSUS
September jp, 1942

Current
Statistical
Service

SALES FINANCE GOMP ANIES
August 1942
The number of passenger cars financed in August 1942 by sales finance companies decreased

6 percent from July of this year, according to an announcement released today by J, C. Capt, Director
of the Census.
The dollar volume of paper acquired in new passenger car financing, however, decreased only 4 percent.
In used passenger car financing, the number of cars decreased 12 percent,
the dollar volume of paper acquired, 10 percent.
In new commercial car financing, month ago comparisons show that the number of cars decreased 13 percent, and the dollar volume of paper acquired,
7 percent; while the number and dollar volume of used comnercial cars decreased 18 percent and
16 percent, respectively.
Retail automotive outstandings held by sales finance companies were reduced an average of
13 percent during August 1942.
A year ago comparison shows a 62 percent drop in these outstanding
balances, as shown by an index of 178 for August 31, 1941 and an index of 67 for August 31, 1942.
OUTSTANDWG BALANCES
Ri!.TAIL AUTOkOTIVE l"'NANCING
DECElliiBER 31, 1939 100

=

INDEX

200

150

100

•

50

0
1940

1941

1942

Month ago comparisons show that the volumeof wholesale automotive paper acquired by sales
finance companies decreased 17 percent for new cars and 3 percent for used cars.
The outstanding
balances for this type of paper decreased 14 percent during August 1942.
In retail diversified financing, month ago comparisons show increases in the financing of
other household appliances (19%) and of radios and other musical instruments (3%); but decreases
were recorded in the financing of refrigerators (34%), industrial, commercial, and farm equipment
(33%), furniture (ll%h and residential building repair and modernization (8%). In Wholesale diversified financing, the volume of ~aper acquired was down 3 percent from July to August of this year.
During August 1942, diversified outstanding balances held by sales finance companies
declined 6 percent for the retail financing of other consumers• goods, 4 percent for industrial,
commercial{ and farm equipment, and 12 percent for wholesale diversified financing (other than
automotive),
The ratios of the paper acquired during August 1942 to the outstanding balances as of
August 3~ 1942 were 5 percent for retail automotive, 4 percent for wholesale automotive, 11 percent
for wholesale--other than automotive, 3 percent for retail--other consumers• goods, and 2 percent
for ind~t:~~' cc:mnercial,. and farm equipment.
·.··•
.
.
.

··, ::~"t•·'•~-: :Yl: ·

:~·'.fti"•M<data· ·oif-'th'tf'currertt: trend:i! of sales firillncing tiu:tfrtg Augil$t 1942 wei-j'-baftif''O'n 2
:reporte frc 261 aalee finance companies,
Neither the dollar volumes nor the indexes should be used
to indicate the total amount of financing by all sales finance companies in the United States. The
data are published as reported without adjustment for seasonal or price fluctuations.
The figures
presented in tables 5, 6, and 7 of th~s r~lease 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 August were obtained by calculating the percent changes from July to August,
as shown by data on repo~ts for both months from the same sales finance companies, and by linking
these percentages to the indexes previously derived for July 1942.

3-JS6i3



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
automotive

Wholesale
other
than
automotive

Retail
other
consumers'
goods

Industrial,
commercial,
and farm
equipment

1939 - Dec. 31 .•••.••

100

100

100

100

100

100

1940 - Dec. 31 .......

136

132

169

140

129

131

-

-

175

-

250

148

-

152

176
178
170
164
157
149

147

147
143
135
125
115
105
95
84

139
128
116
105
95
86
77
67

196
234
233
222
208
193
175
151

262
293
252
191
153
130
110
97

143
139
135
131
126
118
110
103

144
152
155
156
153
148
140
134

July
Aug.
Sep.
Oct.
Nov.
Dec.

31. ••••••
31 •••••••
30 ....•••

1942 - Jan.
- Feb.
- Mar.
- Apr.
-May
-June
-July
-Aug.

31 .......

1941 -

!/

)1 ...•.••

30 •••••••
31 •••••••
28 •••••••

31 .......
30 .......
31 •••••••
30 •••••••
31 •••••••
31 •••••.•

-

-

Indexes for July 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 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

!/
'

May

June

July

August

64

59

61

61

54

43

40

58

52

53

50

27

45

31

23

25

22

19

100

77

83

68

60

64

63

55

100

74

69

55

45

46

42

34

Class of paper

Jan.

Feb.

March

Total retail automotive ••.•

100

70

78

New passenger cars •••••••

100

22

New commercial cars ......

100

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

April

\

Bureau of the Census
~

Current

Stat~st~cal

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 "Total retail automotive" are based on all figures reported for this item regardless
of whether or not a breakdown could be supplied,
J
 ;v'.r?J


-

'

.
Page 3

SALES FINANCE COMPANIES

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

!I

Jan.

Feb.

March

April

May

June

July

August

Total retail automotive •••••••

100

62

73

57

55

57

58

52

New passenger cars ••••••••••

100

22

46

42

60

55

57

54

New commercial cars ••....•..

100

28

48

34

25

29

25

23

Used passenger cars.,, .....•

100

73

81

62

55

60

60

54

Used commercial cars ••••••••

100

76

69

58

47

51

47

39

100

93

39

19

16

12

12

10

comm.) ••••

100

100

37

17

14

10

8

7

comm.) •••

100

67

66

40

37

29

29

28

Total wholesale

~utomotive ••••

New cars (pass.
Use.d cars (pass.

&
&

!I 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

!I

Jan.

Feb.

March

April

May

June

July

August

Total retail, other consumers' goods ••

100

103

137

123

108

80

59

54

F\J:rniture •••••.....••...•.... ~ ••..••

100

88

122

110

97

73

66

59

Radios, pianos, and other
musical instruments •••.•••••••••••

100

108

141

72

37

33

30

31

Refrigerators, (gas and electrical),

100

147

250

132

105

63

34

22

·other household appliances ••••••••••

100

115

169

116

80

46

31

37

Residential builQing repair and
modernizatien •••••••••••••••••.•••

100

92

119

127

128

98

84

77

Miscellaneous retail ••••••••••••••••

100

144

155

131

131

142

124

117

Total wholesale, except automotive ••••

100

128

106

52

24

18

12

11

equi}:Glent •••••••••••••••••••••••••••

100

124

158

162

85

49

46

31

'l'otal diversified financing ......

100

ill

130

107

86

62

47

42

Class of paper

Industrial, commercial, and farm

Bureau of the Census

!/

Current Statistical Service

Indexes are derived by calculating the percent changes in the volume of diversified 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 other consumers' goods" are based on all figures reported for this item
regardless of whether or not a breakdown could be supplied.
~-J$"61'J




Page 4
SALES FINANCE COMPANIES

Table 5.-- Automotive and Diversified Financing
Volume of Paper Acquired During August 1942 and Balances Outstanding August 31, 1942
Volume of paper acqui~ed
durinR Au ust 1942
By companies
By all
reporting
companies
outstandi,!7
balances a

Class of paper

Outstanding
balance:.
August 31,
1942 !I

P..& t:!.o paper

acqu.ired to
outstanding
balances pJ

$26,428,684
$25,782,102
$553,728,339
5
9,108,411
9·,279,079
242,876,949
4
Total wholesale - other than automotive ••••• ,
483,107
4,257,984
11
525,934
Total retail - other consumers' goods ••••••••
6,096,798
201,429,716
6,341,674
3
Industrial, commercial, and farm equipment •••
35_1 ,901
387883
15 851 897
2
Total sales financings •••••••••••••
$42,963,254
$41,822,319 ~l,Ol8, l44, 945
4
!f Data are based on figures from sales finance companies able to report both their pap~r acquirGd and t.htlir·
outstanding balances.
pJ Ratios obtained by dividing paper acquired (column 2) by outstanding balances (column 3).
Total retail automotlve .. •.•••..••.•.•••••••.•
Total Wholesale automotive •••••••••••••••••••

Table 6.-- Automotive Financing
Number of Cars Financed and Volume of Paper Acquired During August 1942
Number of cars
Percent
Number
of
total

Class of paper

Paper acquired
Perc ant
Dollar
ot
volume
total

Total retail automotive ••••••• , ••• , ••• , •••••.•

2L!1i

!QQ

i2~ ,60J ,12J

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

5,715
428
52,843
2,189

9
1
86
4

4,592,895
540,368
19,502,015
967,845

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

-

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

-·

-

!I

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

l7.Zl2,222

M?Q
18
2

76
4

.!I I

M&

---

69

5,329,404
2,382,825

Jl

!( Data are based on reports from sales finance companies providing a breakdown of their retail and wholesale
These amounts are less than those reported in table 5 due to the exclusion of so~
automotive financing.
data for which breakdowns were not available.

Table 7.-- Diversified Financing
Volume of Paper Acquired During August 1942
Class of paper

Dollar· volume

Percent
of
total

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

Radios, pianos, & other musical instruments.
Refrigerators, (gas and ~lectric) ••••••••••
Other household appliances •••••••••••••••••
Residential bldg. repair & modernization •••
-Miscellaneous retail •••••••••••••••••••••••

$159,203
73,784
182,960
l27,ll0
2,120,540
588,814

Total retail- other consumers' goods ••••••••
Total wholesale- other than automotive ••••••
Industrial, commercial, and farm. equipnent •••
Total diversified .financing ••••••••

$3,252,411
525,934
387.88J
$4,166,228

Bureau of the Census

!/ Data

4
2

4

3
51

J.!t

!I

78
13

....2
lOO

Current Statistical Service

are based on reports from sales finance companies providing a breakdown of their retail finanCing of
other consumers' goods. This amount is less than that reported in table 5 due te the exclusion of some
data for which breakdowns were not available.

j.Jst,SJ