I have observed that if you increase your needs, the new 'increased need state' becomes your new norm after a while. For example, if you didn't have car before but then you purchase it, use it regularly and then when you don't have it anymore — you'll miss your car, you'll feel like you can't live without it even though you managed to live without it before.
Do you agree with this observation? Would you agree that it's better to not increase your needs in first place?
This is largely true but not entirely. We cannot value things that we get very easily, like the example you gave, if you don't have a car, you will have a dream of buying a car, but if you buy that car and after using it for just a few days, you will no longer feel like using it like a new one, then you will be interested in buying a better brand of car. And then you may sell it and buy a new car of a better brand and at that time you will never miss your previous car. But you will miss it only if you are financially broke and for some reason you have to sell your car but you cannot buy a new car, in that case you will miss that life of yours. How you will feel after selling a hobby of yours will depend on what you sold it for.