Core Viewpoint - The "high interest high rebate" model in auto financing is being phased out due to regulatory crackdowns, leading to a significant transformation in the automotive finance market and a stabilization of the used car market [1][2][4]. Group 1: Changes in Auto Financing - Many banks have shifted from "high interest high rebate" to "low interest low rebate" or "low interest zero rebate" models, with major state-owned banks halting the former practice entirely [1][2]. - The "high interest high rebate" model created a distorted chain between banks, dealers, and consumers, where consumers were misled into believing they were getting better deals while actually paying higher interest [2][3]. - Regulatory measures are targeting three main issues: lack of transparency in rebate mechanisms, hidden penalty clauses for early repayment, and market disorder caused by the "no loan, no sale" ecosystem [3][4]. Group 2: Impact on Used Car Market - The cessation of the "high interest high rebate" model has allowed the used car market to stabilize, as new car price reductions previously pressured used car valuations [4][5]. - The average transaction price of nearly new cars (1-3 years old) in the used car market is expected to rise as new car prices stabilize, with reports indicating that prices for certain models have already increased [4][5]. - The shift in consumer perception towards valuing full-price purchases over loans is leading to increased inquiries about used cars, indicating a potential recovery in the used car market [5][6]. Group 3: Future of Automotive Finance - The automotive finance industry is at a crossroads, needing to transition from a focus on scale to prioritizing quality, utilizing big data for risk management rather than relying on high yields to cover risks [5][6]. - Dealers are encouraged to reshape their profit structures by enhancing service value rather than solely pursuing financial penetration [5][6]. - A healthier market ecosystem is emerging, where consumer decisions are based on the intrinsic value of vehicles rather than financing gimmicks [6].