$10k for a serviceable minivan or other vehicle that would work as a primary car for parents? What about the problem that most households need two incomes and very few can commute together due to different schedules and locations and adding even an extra hour or two of daycare in order to share a car is often as much as a second car payment.

As I said, $25k is probably plenty for a small sedan for a single person who only uses it for commuting and grocery shopping, but not likely for people with multiple children that a small sedan or coupe would not work, households with multiple income earners, households with teenagers who also need a car to work, or all the other scenarios where a single, small, used sedan that's just good enough for a short daily commute is reasonable.

$550 in car payments for a houshold is not unreasonable for the vast majority of households and usually doesn't equate to frivolous spending.