They’ll approve way more than they should, but also they probably quoted high interest rates to make up for the risk. People need to see high interest rates as a red flag that the bank really doesn’t believe you but are just feeding you rope while you tie your own noose.

Technically there’s a plus in that this is how people with marginal finances get any credit, have access to any car (and yes cars are unfortunately necessary in too many places). But I’m not sure we’re doing them any favors