I think statistically speaking the absolute best value is a 5 year old car that has been at least reasonably well-maintained. The vast majority of depreciation happens during those first 5 years.

For those that do need to finance a car, a three year loan term should be the maximum. I think you are 100% correct on that. There are people with car loans that have terms of 7 years. It's sad that people are setting themselves up for failure like that. If you can't afford the monthly payments on a 3 year term then you really can't afford the car at all.