An old car is not a 2000$ surprise bill and you are done. It’s 1000 and after a couple of months another 2000 and after that another 1000. It never stops asking randomly for money.
While I was a student over the span of 5 years I had spent to the mechanic more than what I had paid the dealer for my 10 yo used car. Without the help of my parents I am not sure how I would be able to spit enough money to pay all of these bills.
So yes paying 400 per month for 7 years with high interest is a better deal that getting a car that you can afford with cash.
I don't mean to downplay people's problems, but this very much depends on the car, your local climate, and your ability to spot problems before they become serious. Lots of Toyotas out there that you only need to budget oil and tires for, and the occasional strut/brake pads/spark plugs as needed every few years. And there is plenty of information out there on which used cars are more reliable and how to spot parts that will need maintenance, if one is resourceful enough to search for it.
While I was a student over the span of 5 years I had spent to the mechanic more than what I had paid the dealer for my 10 yo used car. Without the help of my parents I am not sure how I would be able to spit enough money to pay all of these bills.
So yes paying 400 per month for 7 years with high interest is a better deal that getting a car that you can afford with cash.