I bought my last car in 2011, I paid cash. That's when I first learned from my dealer that most new car loans he dealt with were "under water" and banks and finance companies required loan recipients to purchase special insurance to cover the full debt. I had never heard of such a thing.
He also told me that it was not uncommon for people to owe double what the car was worth.
A family friend is a young guy that sells Toyotas.
He NEVER has a lack of customers.
But he has a SERIOUS lack of customers that can qualify for loans.
Says he spends >80% of his time working financing deals.