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If you don't have auto repossessions happening, then that'll increase the risk to someone doing auto financing. Those aren't charities, aren't just issuing the money there as a grant, so it'd increase the cost and financial requirements to get automobile financing.
One might need to pay much more interest on an auto loan or simply not be able to get an auto loan at all and only buy a vehicle cash-up-front in that world.
While I somewhat agree with you, people need personal responsibility.
The industry is intentionally preying on people. They have no business giving most of these people loans. Where is their responsibility?
The industry loses money doing a repossessiom and sale, that's the only incentive they need. You can have individuals deciding whether a financial decision is in their own best interest or you can have corporations decide for them.
Meaning car companies will either need to start making vehicles people can afford or the public pressure for public transportation will massively increase. Win-win.