Some of these ‘car dealers’ have a creative business plan.
The down payment covers their car cost. Then they finance the rest. When the customer does not / cannot make payments, they repossess. They get the car back for another round. They do not check credit history because they are in a win/win.
Sometimes the customer knows this will happen, but is willing to pay a premium for a car for a few months until repossessed.
I’ve noticed that. Piece of junk old cars for $4-8,000 with $995 down payments or thereabouts. That explains it.
“They do not check credit history because they are in a win/win.”
This is called, “buy here, pay here”, here.
But it isn't over for the customer.
A friend who got bit at the end of an oil boom and couldn't make payments, took the vehicle back to the dealer and handed them the keys. The vehicle had been driven, but not abused.
He got a bill from the dealership for reposession fees, the cost of 'repairs' to the car (including the installation of options the vehicle had never had), detailing, etc. and the total was just slightly more than he owed on the vehicle in the first place.
Only now, he had no vehicle...
Pay cash, private sale. Caveat emptor.