> one certainly cannot afford to throw away thousands of dollars every year “to not have to worry” about one’s precarious finances.
There are plenty of people who live near paycheck-to-paycheck who also need a car to get to work, where a stroke of bad luck like engine + transmission damage would not only be a significant financial hit but the downtime of the car being unavailable might compound the problem as they can't get to work.
While it's not a great financial situation and ideally nobody should be in it, in reality these people don't have a choice and budgeting away a fixed percentage of their salary on a vehicle that guarantees them to be able to get to work (to pocket the remaining percentage of salary) is a better option than not paying a monthly fee but gambling on the fact that a significant breakdown might completely wipe them out financially and jeopardize the transportation they use to get to work.
It's a bit like insurance - technically it should always be cheaper to self-insure, but insurance exists because for many people perpetually paying the premium is still better than a single event wiping them out completely.