Why $ALLY Went Wrong

Turn-around Essay

I had predicted that Ally would have a hard time beating the estimates due to the economy that we are in right now and it was right. One main way that Ally makes money is through giving used car loans, however, the demand for that area isn’t very strong right now. Usually, people who buy used cars are the ones who are on a low budget and can’t afford new cars and they are the first people being impacted during a recession. This in return, makes many of them not eligible for car loans or not even able to afford them. As a result, companies like Ally take the damage. Additionally, Ally also does investments however, the stock market also isn’t in a very good place right now so they also weren’t able to add that to their revenue. As I had predicted, their customer demand wasn’t high and therefore they weren’t able to beat the EPS