To open the automobile purchase calculator double click on the TC icon.  This gives you a menu bar which you can move to another screen if using multiple screens or place it where is most convenient.   You can also resize calculators as you open them to view them comfortably.  To do so, click on the calculator and move cursor to bottom pull down and drag to make the box a larger size.   Select Automobile Calculator.  There are a couple ways to use this calculator:   put in value of a person’s current assets or leave it blank initially.  Type in net rate of return on savings this is going to fall for most people in the 4 to 5 % range.  Using 5% we’ll do a 40 year projection and if doing a 40 year old that person if buying an auto every 4 years, they’ve probably got another 10 purchases ahead of them.  You can change the buying frequency to set it up for the number of years you want to illustrate.  Here we’ll do the buying a car every 4 years we’ll take an actual purchase price of $40,000 that gives us our first set of numbers.  This makes the assumption that this person buys these cars and downsizes the kind of car he’s buying or the automobile company forgets to raise the price on it.  In this case, the buyer transfers $400,000 to the car company over that period of time.  We know that this is not true and if we want to take our calculator and interest rate calculator and spend a few minutes to educate the client, they are going to find that the auto purchases average a little above 5%.  So if that holds true in the future then the value of the cars really goes up the cumulative cost goes from $400,000 to over $1,000,000 and we’ve got the actual asset value simply applies a 5% cost to these purchases there’s no way that this cannot happen.  So your true cost of these automobiles is $2,815,000.  A better way to do this is to add a couple of things we’ve overlooked.  In our state, 8.25% is our sales tax.  The automobile insurance is going to run about $1,800 so in this car buying model, we’ve got 3.4 million dollars of money that we’ve transferred out of our asset pile and to the car and car insurance companies.  This is a good tool once people have read the book on infinite banking to help them get a handle of their car buying problem.  In the way of an expenditure they lose control of that money and the money they would have earned had it not been transferred.  The number that you have right here also determines based on their situation, their age and purchasing habits how much can be recovered through the infinite banking process.  I could have started out over here and suppose we’ve got $250,000 and we’re saving $10,000 a year increasing 4% and this shows our value is $4,110,914 so you would think that this person with this kind of savings and money adding into their savings account that they could afford to accumulate and save money and pay cash for their automobiles thereby saving interest.  Let’s take a look at a four year purchase frequency, $40,000 car plug in our sales tax, insurance, what we have is our $3.4 million of damage done to the account if we pay cash for the cars.  Once the person has read the book this is a good refresher and if not read this is an excellent motivator to get them to read the book because without the infinite banking process they don’t have much of a chance.  They need the art of  acquiring their own debt.  If they are paying cash they create a debt against their existing capital and the paying cash and the borrowing there’s zero difference unless the borrowing rate is less than the savings rate.  Tutorial by Norman Baker.