Maybe i am out of touch because we own our car outright, but its not nearly that expensive for us. Even with a parking spot rental.
Try adding in the cost of depreciation and it makes a lot more sense. I owned a used car for 10 years and didn't commute using it for most of that time, so it didn't even rack up that many miles. It still cost me over $500/month on average over that time period including depreciation, maintenance, gas, registration, and insurance. I'm sure it would be a lot more if I drove as much as the average american. Though I think the average is probably somewhat skewed towards the most expensive cars.
Needless to say I am now happily car free. $500/month can buy me a very nice ebike, as well as more taxis or hourly car rentals than I need.
Yes I think I probably should have sold it as soon as I stopped using it to commute. I was mostly just ignorant of all the alternatives to car ownership. Car ownership is not worth it in my opinion unless you truly need to use it several days out of the week every week. And people should be doing pretty much everything they can to avoid being in that situation.