The electrical system of a car is a closed circuit with an independent power source the battery. It operates on a small fraction of the power of a household circuit. Current flows along a single cable from the battery to the component being powered, and back to the battery through the cars metal body. The body is connected to the earth terminal of the battery by a thick cable.
You can fold the bare wire end double to fill the terminal hole. Then solder the terminal and wire. Use shrink wrap to encase the connections. This serves two purposes, one to insulate the terminal and the other is to add support to the end of the wire so that it will be less likely to bend and break.
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