Car price increases outpace inflation because of the increased regulation on vehicles. Get rid of the regulation, prices can drop as market forces take over.
For example, airbag systems will add a couple thousand to the cost of a new car. If they were optional, the market would drive the cost to a better price. Now, manufactures can basically charge what they want for the system, as long as the total cost of the vehicle doesn’t drop their market share.
For folks starting out in life (read - not much money), that thousand or two can make a big difference. Being able to actually get a car, makes it much easier for folks to improve their lives because otherwise, their time is too consumed w/bus rides, etc..
For myself, if it was optional, I would’ve gotten a non-airbag car when I was starting out. Only getting airbags when my income improved (if even).
I know a girl that just totaled a Honda (model ?). She hit a slick spot and bounced off the concrete divider. The two front and one side airbags deployed, the kicker, she was able to drive the car home. No driveline damage, not even a bent wheel, just scuffed paint and the airbags. The insurance company deemed it totaled, the airbags alone were estimated at $6K to replace.