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Is it a:

A vacuum pump in an automobile?

The bigger I am, the less I will hold. No one else would be so bold.

Two interpretations: (i) A bigger vacuum has less stuff in it. (ii) As tight seals stretch out, they don't hold as well.

I get comfy in the car, as we travel real far.

They're used to power/control automotive parts and accessories.

I used to get used a whole lot. Now, nobody gives a squat.

They're not in as common use as they once were. (?)

It's clear when I fail, you'll hear folks wail.

Some of the components that they can be used for include brakes, door locks, and ventilation systems, giving people reason to wail.

I was popular in the eighties. I sure miss my Mercedes.

Mercedes are well-known for these systems.