SOURCE: InvestmentPitch

November 23, 2010 20:47 ET

InvestmentPitch.com Video News Alert for RIFCO (RFC-TSX.v) - RIFCO to Utilize DealerTrack's Network for Online Credit Applications

VANCOUVER, BRITISH COLUMBIA--(Marketwire - November 23, 2010) - InvestmentPitch.com'svideo news alert discusses RIFCO (RFC - TSX.v) and their roll out of their auto lending program to select Canadian dealers through the national online credit application network, operated by DealerTrack Canada, Inc.

RIFCO will have potential access to over 5,000 enrolled automotive dealers participating in the DealerTrack loan origination platform, the largest in Canada. RIFCO is optimistic that as access to reasonably priced capital is expected to continue to improve for the Company, now is the opportune time to join the DealerTrack Network.

"RIFCO's participation in the DealerTrack Network has the potential to be transformational for RIFCO." says Bill Graham, President and CEO of RIFCO. "This enhancement to RIFCO's loan origination platform increases the Company's franchise value."

"By offering their unique automotive financing services through the DealerTrack Canada network, RIFCO will be able to help streamline the consumer loan process for its Canadian dealers," said Michael Collins, Vice President and General Manager of DealerTrack Canada. "This agreement with RIFCO underscores DealerTrack's commitment to providing dealers with a full spectrum of options that help simplify the financing process for both the dealer and consumer."

Transformational

From a dealer's perspective, DealerTrack network will put RIFCO on comparable footing with other, larger auto lenders. Some industry observers have cited the non-traditional auto lending marketplace in Canada at a potential $4 billion per year in new loans. RIFCO expects this agreement with DealerTrack to help increase its market share in this segment of the market. This means that, in terms of dealer reach and loan originations growth potential, the ceiling on RIFCO's size and ultimate potential has been raised.

RIFCO is also looking forward to using certain DealerTrack network tools and features that can facilitate segmented and custom lending programs for groups of dealers. RIFCO is also investigating origination opportunities for other financial institutions. These opportunities would not conflict with RIFCO's current non-traditional auto lending and may be assisted by the DealerTrack network.

Incremental

Many of RIFCO's Dealer partners have requested RIFCO's presence on the DealerTrack network. RIFCO's participation in Canada's largest online portal will serve to cement relationships with existing partner dealers and will increase opportunities with potential new RIFCO dealers.

RIFCO's dealers have advised the Company that RIFCO's participation in the DealerTrack portal, alongside other larger industry lenders, will help in increase loan applications and increase loan originations for RIFCO. In order to accommodate the expected increase in loan applications and funded loans, RIFCO has added internal capacity to its credit, sales, and loan funding departments. The Company is committed to maintaining superior credit performance and closing ratios.

The immediate vision of RIFCO has been to appropriately grow to the point of originating $100 million per year in new loans. The Company has stated that its aspirations for the coming years range from 50% to 75% new loan growth. The Company has also disclosed its fiscal 2011 objective at $50M in new loans for the year ending March 2011. While access to appropriately priced capital remains a key limiter on RIFCO's ultimate growth rate, participation in the DealerTrack network is an important Company initiative toward reaching its potential.

Consistent with Current Strategy

RIFCO has chosen the DealerTrack solution in order to further improve its unique relationships with the current dealer base.

The Company's competitive positioning and culture within the auto industry remains to be the most entrepreneurial, most service based, and fastest growing non-traditional auto lender in Canada. RIFCO has high growth aspirations and believes that its success continues to rest on having exceptional relationships with exceptional dealers. Significant resources are dedicated to pursuing the best lender- dealer relationships in the industry.

RIFCO remains committed to its core group of dealers that share our "win- win" paradigm. New dealer enrolment will only be sought with likeminded dealers. It is expected that the number of dealership requests for RIFCO financing will continue to exceed the internal rate that the Company can professionally enrol and service these new relationships. RIFCO will continue to maintain a priority on enrolling those dealers that share our vision for growing a profitable partnership together.

RIFCO and DealerTrack are actively working on an integration and development plan. It is expected that RIFCO enrolled dealers will be able to begin utilizing DealerTrack to source RIFCO financing for their automotive customers by early 2011.

About RIFCO Inc.

RIFCO is one of Canada's fastest-growing automotive finance companies. Non- traditional auto loans are indirectly originated through a growing network of selected new and used vehicle dealers operating in all provinces except Saskatchewan and Quebec.

RIFCO has 19.25 million shares (basic) outstanding and 20.93 million (fully diluted) shares.

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Source: InvestmentPitch via Thomson Reuters ONE

Contact Information

  • CONTACT:
    RIFCO INC.
    Lance A. Kadatz
    Vice President and Chief Financial Officer
    Telephone: 1-403-314-1214 Ext 111
    Email Contact
    Website:www.rifco.net

    DEALERTRACK, INC.
    Debbie Oberender
    Director, Marketing and Communications
    Telephone: 905.281.6229
    Email Contact

    InvestmentPitch.com
    Barry Morgan, CFO
    Telephone 604-684-5524
    Email Contact