My credit union recently sent me an email telling me I can be approved for up to $70K for an auto loan, this is insane! When we allow competitiveness or temptation to decide how much money we spend, we lose every time. The only way to get Tesla to offer that $25K car is to stop buying the more expensive ones.
This is something I've always found fascinating about materialism (I can only speak to the US). The messaging and feelings are incredibly similar whether your budget is 10k or 100k. Very easy to slide up the scale slowly and feel like you're still living small with a bulging budget, or to choose options that are beyond your means and so stunt financial growth.
Car makers make a lot of money based on our egos to one up-our neighbors. Car salesmen are trained to create a competitive atmosphere at the dealership by exposing our vanity and it works!