The forty rearend is a slightly better rearend. As the cars became heavier Ford beefed up the housings and spring hangers (I have a ‘33-34 rearend that has a cracked spring hanger) The ‘40 rearends have a much stronger spring hanger. I was told by an early Ford rearend specialist that the ‘32 to’34 carriers (the part the ring gear bolts to crack). I have several ‘33-’34 rearends and sure enough, one of them that I disassembled had a cracked carrier so it must be a fairly common problem. The later rearends have slightly stronger carriers, these carriers will work in the late ’32 to ’34 rearends. Another neat feature of a ‘40 rearend is the aftermarket tube shock mounts that bolt to the backing plates. They are a great way to bolt tube shocks on the rear of a ‘32 without having to do any welding on the housings which will warp them These mounts will not fit a ‘32-’34 rearend because there is not enough room between the spring hanger forgings and the backing plates. The forty rearends came with hydraulic brakes with the small bolt pattern that would except the stock ’40 16” rims or the 35 Ford wire or Kelsey rims, (spacers are required for the wires to support the hub unless you use ‘35 rear drums) The ‘39 rearends with hydraulic brakes have the wide-five bolt pattern so you would need to swap out the drums, otherwise the rearend should be the same as a ’40. ‘46 to ‘48 rearends are a little too wide for a ’32. Some guys used them on channeled cars to keep the tires from rubbing on the quarter panels. ‘35-’36 rearends also make nice rearends for a ’32, they are my favorite looking rearend in a '32.
The ‘32 to’34 reraends have a compound curve in the spring that fits into a cross member with a matching curve. The ‘32 spring will not work with a ‘40 rearend because the ’40 spring hangers are longer. Most guys grind the ‘40 spring to fit the ‘32 rear cross member. Some guys cut the rear cross member and straighten it and then weld it back together. If I had a pristine ‘32 frame I definitely would not cut it.
With all that said the stock ‘32 rearend fits without doing a thing to it, there is a lot to be said for that. The late ‘32 rearend with the strattle mounted pinion gear is preferred but they are really hard to find. The ‘33-’34 rearend is the same rearend except you will need to shorten the torque tube and Driveshaft (speedway has a driveshaft kit) I would run the stock Houdaille hydraulic shocks with a ’32-34 rearend since they bolt right up. The only down side to these skacks are they are a little pricey to rebuild. They look good on a 40s era hot rod.