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

Questions:

• 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?

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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.

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