RED DEER, Alberta -
Just a few days after revealing record second-quarter and first-half results, RIFCO announced it has signed on to the DealerTrack Canada national online credit application network.
As such, possibly more than 5,000 dealers utilizing DealerTrack will be able to tap into RIFCO’s lending program, officials noted.
“RIFCO’s participation in the DealerTrack Network has the potential to be transformational for RIFCO," stated RIFCO president and chief executive officer Bill Graham. “This enhancement to RIFCO’s loan origination platform increases the company’s franchise value.”
Michael Collins, vice president and general manager of DealerTrack Canada, noted: “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. 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."
RIFCO hopes its share of the nontraditional auto financing market will be bolstered thanks to this deal.
“RIFCO is also investigating origination opportunities for other financial institutions,” officials stated. “These opportunities would not conflict with RIFCO’s current nontraditional auto lending and may be assisted by the DealerTrack network.”
Apparently, a large part of the the company’s reason for joining DealerTrack is due to the feedback of dealers.
The lender further noted that it believes it can strengthen its relationship with its current dealers and add new dealer partners through the DealerTrack program.
“RIFCO remains committed to its core group of dealers that share our ‘win-win’ paradigm. New dealer enrollment will only be sought with like-minded dealers,” officials said. “It is expected that the number of dealership requests for RIFCO financing will continue to exceed the internal rate that the company can professionally enroll 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,” they added.
The two companies are collaborating to sort out plans for integration and development. RIFCO-enrolled dealers should be able to tap into DealerTrack for RIFCO financing by early next year.
RIFCO Reports 2Q Strength
In other news from the company, RIFCO has enjoyed some record financial results of late.
For the second quarter, it posted all-time highs in the following areas: revenue, auto loan originations, managed assets, cash reserve releases and book value per share. Not to mention, the interest cost on securitized loans were the lowest ever for RIFCO.
Meanwhile, the company’s first-half net income, which came in at $1.02 million, was the strongest ever for RIFCO. It climbed 410 percent from the year-ago period.
As far as the second quarter, RIFCO took in $599,593 in net income, compared with $34,699 in the year-ago period.
Quarterly revenue was $4.41 million, a gain of 60 percent year-over-year and a 19.4-percent sequential hike.
Moving along, loan originations came in at $10.56 million, up 66.7 percent year-over-year and 15-percent sequentially. Because of that spike, managed finance receivables were $63.48 million, a gain of 19.4 percent.
Finally, book value per share was at $0.517, compared with $0.455 in the same period of 2009.