Fairly simple reasoning why someone would go with the 20k car.
Vast majority of the average population has the spending sense of a 3 year old with 10 bucks in a candy store.
They have a tendancy to fall for the monthly payments and not think long term. Also often with poor or no credit car companies will only obtain new car finacing instead of issuing a loan on a used car. Reasoning is that a new car would have a better value if repoed, where a used car often would be worth less than the amount due.
They of course could outright buy a used car for a few k, yet people have no savings and they would rather spend 300-400 a month for 60 months than try to get a few k together all at once.
Hell look at how many people use rent to own furniture and electronics. 60.00 a week for a TV and so on.
