I think this is the major driver of higher priced cars: people want luxury. In 1970 if your car got 100k miles you had bragging rights despite the car having rust holes and burning almost as much oil as gas. In that world buying a basic new car as smart: it wouldn't last long. These days anyone who would settle for a basic car can buy a use car with more luxury features and it will still be reliable for a long time. As such car makers have to focus on those willing to buy luxury.