Chart of the Week: Auto Loan Terms

Jan 06, 2020
Budgeting, Behavioral Finance, Chart of the Week

This chart ties in well with today's Question of the Day which equates longer auto loan terms with higher interest costs for borrowers. 



  • Which loan term has grown most dramatically in the last decade?
  • Which loan term has declined the most?
  • Why do you think that seven year loan terms have become so popular? 
  • Do you think that having a long-term car loan is a wise choice? Why or why not?


Here's our question of the day about the increased cost of a longer term auto loan. Also, be sure to check out Shady Sam, a game where students see the relationship between lender profits and loan terms. 


About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.