How do I avoid this?

>>28500422 (OP)
Buy used or buy a car you'll still be driving in 25 years.

Maybe don't buy a car you cant afford?

>>28500422 (OP)
Buy a car for $5k so inflation keeps it at essentially the same dollar figure value (though still worth slightly less in real terms).

That $4k "equity negative" (the fuck?) is really more like $6k given inflation or $18k given opportunity cost of that money making 7% a year.

>>28500422 (OP)
Drive exclusively rare configuration desirable cars that will appreciate despite mileage increases and try not to cry when some phoneposter crashes into you and wrecks it.

Ever wonder why you're paying any interest at all when the cost of capital for a bank is literally zero?

>>28500548
Ban usury.

>>28500422 (OP)
buy a quality second hand car.
brand new cars are for goy cattle who think it's impressing stacey

>>28500422 (OP)
live in a based state with no inspection and drive a 90s-00's shitbox until the wheels literally fall off.

>>28500548
Why would the bank borrow you money if it doesn't stand to gain anything in return?

>>28500619
The point is that banks don't really have money -- they create it as deposits. They don't check in the system to make sure they have enough reserves (which they cannot create, the central bank/government creates reserves) before they create the deposits they label as a loan for you.

It is an entirely fictional product. Now there is a real cost to the goods you're buying -- labor, design, materials, etc. -- but the bank has nothing to do with any off that. It is an entirely parasitical process.

>>28500624
>The point is that banks don't really have money
They do, they use the money customers deposit on the bank to do business.
>It is an entirely fictional product.
It is not. The bank cannot print money. They money they lend you is money that actually exists.
>It is an entirely parasitical process.
You need a service the bank provides a service, sounds like a mutually beneficial arrangement.

>>28500662
When banks make a loan, they create deposits. They do not loan off of available reserves. Stop posting.

>>28500422 (OP)
By putting a down payment that isn't the bare minimum and buying a brand that holds value. If you try to buy a car with only 1-3k down then yeah your loan will be upside down for most of its term

>>28500662
>they use the money customers deposit on the bank to do business.
They haven't done that in decades. It was 1:10 ratio now they're able to loan on literally nothing post 08 recession.
>You mean after a collapse they doubled down on risky loans?
Correct though technically COVID was the final push for the old school holdouts.

>>28500686
>They haven't done that in decades. It was 1:10 ratio now they're able to loan on literally nothing post 08 recession.
They didn't loan off of deposits back then, either. The reserve requirement was just to make sure they had a minimum on hand in the case of withdrawals. It had nothing to do with loans.

>>28500619
https://youtu.be/3N7oD5zrBnc

>>28500491
>given opportunity cost of that money making 7% a year
This doesn't apply to someone worried about negative equity on a used car. Anything less than $100,000 isn't even worth bothering with dividend portfolios. After taxes the snowball is so slow it's painful, and most people would need to liquidate part at least part of it if they lost their job. You might have an argument if you had say 500k in growable assets that you could completely wrap back in on itself while living off your income, but even then you'd be 50+ by the time the dividend payout was enough to retire on without a paid off mortgage.

>>28500754
Here’s another video on the topic
https://youtu.be/cDNSNX48Kmo

>>28500662
Look up "The money masters" or "The secrets of money".
Good video's explaining how the banks are completely parasitical.
IE: Centralized banking and ursury is EVIL.

>>28500757
>It doesn't apply because they're not rich
No it applies even more because a couple grand a year is a significant portion of your income in their tax bracket. Saying they don't care is stupid because otherwise they wouldn't be investing at 6% with their company 401knbecause they'd never retire anyway yet that's what people do every day.

The reality is if you're not a millionaire you can't buy a new car which is basically what Ramsey says despite being s hack in other areas he's 100% correct in this area.

>>28500663
Wrong. Banks gather deposits first and then loan those dollars out. Dumb nigger.

>>28500422 (OP)
Minimize the amount you borrow, keep the car longer than the term of the loan

>>28500422 (OP)
What's the issue? You don't mean to tell me that you got an 84 month loan on a car that you won't keep for at least 84 months... right?

>>28500754
>>28500765
>>28500773
>it's true because a youtuber said so

>>28500817
>Dr. Richard Werner is a "youtuber"
tiny hat says what?

>>28500775
The millionaire part simply isn't true. You just have to understand money management. A lot of people can't afford to contribute to a roth or 401k and those that do typically do it as a supplement to a diversified portfolio. That's because it's somewhat retarded to contribute to a 401k when that money could be put in the stock market in companies like Ford or Phizer. Even when the stock drops partially, you have thousands of the fattest billionaires in the world keeping their investments afloat. A proper portfolio will see a return of investment at or above 5% every year, but this is actually accessible from day one, with no penalty for early withdrawal (liquidation) and monthly paychecks where you can see your investment.

For those that can afford a new car? Sure they can wrap that money into the stock market or their retirement accounts instead. But you're not 100% sure if you'll live to see it, and planning your entire life around the last 20-30 years of it is a colossal waste. So you got to spend your entire life driving shitty cars to and from work, being frugal, growing your portfolio, and living in a double wide trailer, all so you can retire at 50-65 and spend the rest of your live driving shitty cars, being frugal, growing or living off your portfolio, and living in a double wide trailer. Except now you can travel to Europe once beyond your prime sexual years and can play video games or relax instead of work.

>>28500827
Yeah that’s a much better life than 99.9% of humans have ever had and still probably better than 75% of humans living currently. Or you can work till you die because you wanted to keep up with the Jones’

>>28500976
Or you can do all this planning and all this saving living a frugal life driving dogshit cars just to get obliterated by stacy in her cadillac because she was texting while running a stop sign, of which she will see zero repercussions (can't prove she was texting) and will go on to drive another brand new escalade.

Just live now dude. Enjoy every second of every day regardless.

>>28500995
I wonder who could be behind this post.

>>28500422 (OP)
Instead of investing in a car invest in canned and frozen food and ration it out.

>>28500827
>People can't afford to invest in 401ks
Most people think that which is why any company worth a damn makes it mandatory.

Everything else is just hypothetical mumbo jumbo where in the end your entire argument is you can to afford it if you don't care about your future you could die at any time! Not an argument.

>>28500995
Cool my kid gets a multi million dollar life policy plus my assets. Cars are a poorfag flex. You can buy vacation property for less than the monthly cost of these stupid debt traps and actually make memories with your family at a cabin at the lake they can keep in the family forever.

>>28500999
Then invest in a UV light and start growing vegetables indoors like the slavs do.

>>28501003
Finally invest in a water distiller so you can drink your piss and you re-use the cans as drinking cups so that minerals in the can mix with the water because distilled water has no minerals obviously and urine has toxins thats why you need to distill it before you drink it.

>0 helpful information in the thread
/o/ being retarded destitute boomers as usual
a downpayment or a trade-in will easily prevent any negative equity, removing any need for gap insurance

>>28501001
>You can buy vacation property for less than the monthly cost of these stupid debt traps
Nah you're not getting a vacation home for $400/m unless you're doing timeshare. Which, if you are, HAAAAAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAH

>>28501082
Wanna be a fly on the wall every time he rounds up the wife who cheats on him and the kids who hate his guts for the 18-hour drive in the subprime Land Rover to the family vacation home in St. Louis.

>>28501075
>Negative equity
Lol. LMAO.

There's plenty of advice here people just ignore it because it's people telling them they're not able to afford a new car. Sucks to suck.

>>28501082
You have no idea what you're talking about you can easily purchase land for a cabin for the average monthly car payment which is supposed to be near $1000 right now. Even at half that you still can.

>>28501090
Lol you're so mad. I'd never buy a land Rover. They cost so much money it's a waste. I prefer to drive beaters so poorfags like yourself don't shit their pants and seethe whenever I'm around but unfortunately it happens anyway since I can afford to have kids unlike the broke mother fuckers giving advice in here lmao.

>>28500777
It's not the seventeen hundreds anymore anon. Banks have been the primary source of money creation for centuries now.
Here's a hint: they can 'lend' to each other too.

>>28501091
>which is supposed to be near $1000 right now
You're fucking delusional, and if you mean purchasing barren land with no utilities running to it, wow very cool. May as well purchase a fucking travel trailer for that money. Why would you waste money on undeveloped land? I have that here, quarter acre of undeveloped land for $20,000 a pop. No gas, no well (but it may have water rights), no electricity, no sewage, nothing in reach. That means you're looking at hundreds of thousands if you want utilities, or tens of thousands for solar and gas to power your home. You may as well rent a fucking travel trailer for that money and tow it behind your truck, or even better, just rent an RV and have all the utilities you need and none of the cope. You can also visit anywhere you like with it, because you know damn well you'll see that vacation home once or twice a year for a week or two with bugs crawling out the ass inside, unmaintained the rest of the year, while your kids argue about nothing.

Give cash.
And that is a good deal.most americans buy one car twice with their retarded plans

>>28500422 (OP)
Pay in cash
Or roll it over to a loan that has no penalty for early repayment. I had a friend go on a 72 month loan and pay it off in the first month because the dealer refused to sell it in cash. Dealer was really mad about it too after he paid it off after the first month and called him.

>>28500491
>the poor broke ass nigga that has to take a loan for a $16k shitbox is capable of turning $4k into $18k
I just can't with the delusional retards on this website

>>28500619
Aside from the obvious excel tier edits to disburse money, they also sell off the debt shortly after lending. They are never liable.

My car just hit the carfax value that's equal to my current payoff amount.