Analysis of the impact of the reduction of auto loan rebates on the business strategies of auto dealers

The reduction of the rebate rate for auto loans from 15% to 5% has had a significant impact on auto dealers. First, the profit margins have been compressed, dealers are unable to provide the original discounts, and sales of some models have turned to losses. Second, sales strategies need to be adjusted, customer conversion has become more difficult, and some consumers choose to wait and see. Third, the market competition pattern has been reshaped, the price war has eased, and opportunities for non-bank financial institutions have emerged. Finally, compliance and risk management have been upgraded, and the market has returned to rational competition, promoting differentiated development in the industry.