This is so true. Very few people know of this, and hence spend the rest of their lives paying for loans they could have easily avoided. For example, you can buy a brand spanking new mid-size sedan for $25,000. Let's say you buy this sedan on a loan, to be repaid monthly over a span of 5 years, when you extrapolate that figure over 60 months, you'd pay $26,921.20 for that $25,000 car. The fact is, the first year you have a this new car, it loses 22 percent of its value. At the full 5 years? You're looking at a 55 percent loss on average. That means that $25,000 sedan that you paid $27,000 for, plus tax and associated fees, is worth maybe $11,500 on a good day. This shows you these people are out to manipulate you, and not to help you. Be wise, live within your means.