MDX:
I agree that there are many one and two income families with pretty good disposable incomes that have no trouble affording a $50K+ car/SUV. However, I would bet that there are a great number that stretch themselves thin to have their house filled with stuff and have an expensive car.
When I worked as a bank manager, I saw them by the truckloads. Huge VISA balances, big car loans, Brick card, store cards, etc.
But, hey, if that's your thing, go for it. What pisses me off is when people whine about it. People constantly complain to me about all the debt they are in. I didn't make you do it! Stop yer bitchin. I didn't make you buy a $15,000 TV. No one did. There is some perception that they "needed" a new $55K Sienna and a $15K TV and, and, and.
$500 won't get much more than a $25K-$30K anything into the drive with nothing down. That said, there are some pretty decent vehicles in that price range.
The one piece of advice I have is NOT to buy based on payment. DO NOT tell the salesperson that you have "$500 a month" to spend. You'll get hooped if you don't pay attention to the price, terms, rates, etc.