No not always, there are smaller dealers out there who specialise in selling very cheap cars for a lot of money and handle the finance thenselves, usually they do weekly payments of small amounts like £20-50 not enough for the bigger companies to bother about.
A little £2k car like that will owe the dealer maybe £300-400, they take a £200-300 deposit and £20 a week for 3 years and they make ~ £3k profit if the person pays the whole thing off, even if they only manage a year the dealer makes there money back plus a bit, it’s also about selling in huge numbers, they will shift 30-40 cars a week in some of these small garages because they know people can’t get the credit anywhere else, they usually won’t chase up the debt as they know they won’t be likely to get it back and the car can’t be sold on because it will flag up on any HPI check that gets done so becomes worthless anyway.
They might employ a bailif to go and repossess the car in which case they would just sell it again after a spruce up.
