For the most part I hate haggling, just price the thing fairly and if it's worth it to me I will buy it.
Cars cost as much as they do because they are bloated. Features that once would have been considered extravagant luxury items are now standard on even the cheapest models and on top of that there is a massive and ever growing bucket list of mandated features it must have. Take as an example the 1982 VW Rabbit a friend of mine has, it's a very basic vehicle, no frills, no fancy tech, pretty close to the bare minimum that is needed for a reasonably comfortable car, costing only a few thousand dollars when new but here we are almost 40 years later and it's still going. You couldn't sell a new car like that now, it would have to have to be completely redesigned, it would need thousands of dollars in safety equipment, thousands more in electronics for engine management, buyers would (ostensibly) expect power windows, power seats, power mirrors, power locks, power moonroof, climate control, heated seats, 8 speaker sound system, infotainment, bluetooth, etc adding hundreds or even thousands of pounds of weight and many thousands of dollars to the price. There's just no way to offer a low cost basic car anymore even if many people would be happy to buy one. At least there is still the option of a motorcycle to circumvent much of this.
There is also something to the people spending as much as the bank will loan them thing you mention. I have encountered a shocking number of people who make purchase decisions not on the total amount they will pay for an item but the amount that the purchase will add to their monthly credit card payments. If not for mortgages there is no way the average house price around here would be pushing up towards $1M, I suspect the situation would be greatly advantageous to people like myself who think long term and are able to save up money.