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RIFCO Inc. V.RFC

RIFCO Inc is an auto-purchase finance company. Its subsidiaries are engaged in vehicle financing. The company provides non-traditional vehicle financing to motorists through a growing network of select new and used vehicle retailers. Its auto financing is available to both franchise and independent dealers who want to create a partnership. The company has its operation in all provinces in Canada except Quebec.


TSXV:RFC - Post by User

Bullboard Posts
Comment by pharesfon Nov 21, 2010 9:01pm
394 Views
Post# 17736921

RE: Carfinco

RE: CarfincoWhere are you getting your numbers? I think you're using total revenue which is very difficult to assume the year's revenues based on one great quarter. If we use net income RFC is apprx 1/4th of carfinco's for the quarter, but RFC takes quite a bit more revenue to make the same money, Carfinco's clients are financed at %31.25 whereas RFC can be anywhere from 14-29%(Apprx). As well RFC funds cost a bit more than Carfinco. 
Don't get me wrong though, I am not bashing RFC! Summer of 2009 I was trying to decide between RFC and CFN, I should have picked picked CFN but I chose RFC then. I still have great hopes and believe this stock will go much higher, but comparing Rifco and Carfinco on an even scale just doesn't work. For instance Carfinco and Rifco both finance non-prime clients, but Carfinco will finance nearly anything and always at 30% with the help of a device installed to disable the vehicle if payments aren't made. Rifco prefers clients with a little better credit and gives a rate appropriate to their clients credit ratings. Also, Dealerships prefer to not use Carfinco if possible, it's more of a last resort because in most cases dealers have to pay Carfinco in order to finance a vehicle through them. In contrast lenders like RFC pay dealerships a referral giving them an incentive to send more business to the finance companies.
Bullboard Posts