Seattle, Washington (PRWEB) January 24, 2014
The basis behind Complete Auto Loans’ workshop was relatively simple, but it utilizes some complex mathematical concepts that are best explained through examples. Rob Kaiser, head of the Complete Auto Loans consumer education program, explained, “Basically, every year the money supply increases – causing a decrease in the “real” value of a dollar. This concept can also be applied to the balance of your auto loan, so every consecutive year the auto loan balance becomes less valuable in real terms.”
Complete Auto Loans published a guide that suggests using the national inflation rate to find the “real” interest rate of an auto loan by subtracting inflation. This should show the cost of the auto loan after the loan has depreciated in value due to the inflation of the currency at the heart of the auto loan.
Complete Auto Loans has produced numerous consumer guides in the last month, although most have viewed car loans through a consumer focus rather than through the eyes of an economist. Once one starts factoring in inflation to the value of their auto loans, it fundamentally changes the way that the loan is calculated. For example, a loan at 3% interest during a period of 3% inflation is basically an interest free loan, reducing the incentive to pay a down payment.
Another reason that Complete Auto Loans emphasizes monitoring the interest rates and inflation rates is because you must decide whether or not the expected return of your investment income will be over that of your auto loan. For example, Complete Auto Loans claims that stock market investments of 8% return more than you would spend on the interest of your auto loans in most cases, making it financially logical to put a smaller down payment down on your loan in order to maximize the amount that you have invested.
Complete Auto Loans is an auto lender in Portland Oregon that is committed to responsible lending to a variety of audiences. With low interest rates and a low cost-burden, Complete Auto Loans is able to provide loans to people with poor credit as well as perfect credit.