I instinctively agree with you, but the difference between need and want is a tough one to draw these days. I err on the side of believing that 'need' is a narrow category, comprising of only the things which are necessary for the short-term survival of healthy humans, but others have a broader understanding of the term.
Yes. People who work 3 jobs should not worry about getting a new car for the reasons I mentioned above. Maybe my arguments work better for (upper?) middle-class.