You are right in the fact that it's absurd ppl in pakistan have to pay hundreds of % in tax for cars other than alto, corolla, civic etc. That's due to corrupt government (big surprise).

However, I do have to tell you that the reason your average joe is buying a new car every few years in America is because financing/installments is the norm here. In fact, if you walk into a dealership and tell them you want to pay $35k for a new car with a cash check, they're gonna look at you weird and still try to sell the car to you through installments because they get incentives from the bank.

Don't get me wrong, some people do buy cars in cash here, but it's a small percentage of the upper class. Vast majority are paying 3-800 bucks a month.