Cars are too cheap because we subsidize them too much, in terms of roads, parking lots and so on. It still strikes me as crazy that >$1B in land value (back of the envelope calculation) of Manhattan is dedicated to FREE street parking.
Likewise in most places population density is too low as a consequence of just how much land there is and as a matter of policy. It's crazy to me that in a city like Atlanta (for example) you can get 1-2 acre lots.