Widespread repossession and resale would probably damage the resale value for all used cars.

resale value for all used cars could use some damage right now

Chill out, let me get mine traded in first before that happens.

Sounds like the type of thinking that won't get you that quarterly sales bonus!

Seriously though, just like mortgage originations pre '08, anyone who had qualms about that kind of thing left that industry a long time ago, or never joined.

These lenders make money on bad and even failed loans. Why sell a car once when you can sell it 3 or 4 times.

"buyer of the 1999 Oldsmobile Intrigue at Auto World Auto Sales in February.

A 26-year-old single mother of three, she needed a car to get to her new job as a home healthcare aide. She agreed to pay $3,899 — roughly double book value — and put down $1,200 cash on the deal.

As the due date for her first installment approached, Fields realized she’d need a few extra days to scrape together the $220 payment. The dealership wouldn’t wait. It repossessed the car a week after the payment was due"

https://www.latimes.com/business/la-xpm-2012-aug-15-la-fi-bo...

So I understand the point of the story, but by my reckoning "a few extra days" is less than a week.

I'm sorry for her but it was her fault. $2700 at $220 per installment is 12 installments. Such a tight schedule is unusual. You should always try to get the most flexible arrangement that you can afford and pay it off sooner only when you actually have surplus money left over.