Used cars are priced at exactly what the market will bear.
IMHO new cars are overpriced. But I believe that the cost is driven by the manufacturers being very highly regulated. How much depends on what study you read. I would not at all be surprised if the truth was around 1/3 of the total cost of the average car. Recognize that much of the regulatory cost doesn’t leave the manufacturing facilities IN the cars, but must still be absorbed by their cost. I do NOT believe that the manufacturers are making unrealistic profits.