Core Viewpoint - The "high interest and high rebate" model in the automotive finance sector is rapidly being phased out due to regulatory interventions, with multiple banking regulatory bodies and industry associations prohibiting this practice to protect consumers and restore market order [1][3][4] Group 1: Impact on Consumers - Consumers' legal rights are being compromised, as some dealerships aggressively promote loan purchases over cash purchases, effectively forcing consumers into financing options [2][3] - The "high interest and high rebate" model has become a tool for price wars among car manufacturers and dealers, leading to unstable new car prices and affecting the health of the entire automotive supply chain [2][3] Group 2: Risks to Financial Institutions - The model misleads consumers and increases moral hazard among dealers, as some may push loans to financially weak clients for short-term commissions, transferring credit risk to banks [3] - High rebates combined with long loan terms may result in banks' earnings not covering funding costs, thereby increasing operational risks for financial institutions [3] Group 3: Regulatory Response and Future Outlook - Regulatory actions to halt the "high interest and high rebate" model aim to protect consumers from misleading sales tactics and hidden costs, while encouraging banks to return to risk-based pricing [3][4] - The automotive finance market still holds significant potential, and future financial products should be designed to be transparent and understandable, fostering a healthier market environment [4]