subprime auto lending risks underwriting quality
Ally Financial's subprime auto-lending footprint and ~9–12% used-auto loan rates are imposing significant consumer pain and represent underwriting and reputational risks, so I'm bearish on ALLY.
Ally Financial's concentration in subprime auto loans at roughly 9–12% used-auto rates creates significant consumer stress and underwriting exposure. The analyst sees reputational and credit risk compounding the dealer finance channel's vulnerability.
Publish-day $39.84 · 04/04
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