You're making an assumption that a person has a base level of net worth with which they can buy a car outright. Someone who is "in debt" by definition has a neg

You're making an assumption that a person has a base level of net worth with which they can buy a car outright. Someone who is "in debt" by definition has a negative net worth, so even a very cheap car ($500 or so?) would be difficult to pay for with cash. Additionally, cars that cheap usually end up costing way more when you account for hidden maintenance costs, etc., so a decent car is probably going to run you $1500 at least.