Yes it does. You can’t make these decisions in a financial vacuum. If you are going to default on a car loan it matters a lot and as such should be considered in the decison.
You cannot predict that the exact same failure will occur. Even if you can, you have the option of fixing and selling the car or walking away and taking the loss. If it is financed, you risk destroying your credit if you walk away. If you own it outright, you can walk away with a loss but no other effect. Your example was that exact situation.
You make your decisions your way, and I’ll make them my way. And I’ll advise accordingly if asked.