Vehicle leasing and customer credit rehabilitation system and method

• US 20010034700A1
• Filed: 02/20/2001
• Published: 10/25/2001
• Est. Priority Date: 02/29/2000
• Status: Abandoned Application

• Current Assignee: Credit Acceptance Corporation
• Original Assignee: Credit Acceptance Corporation
• Inventors: Foss, Donald A., McCluskey, Keith P., Osterman, Charles M.
• Application Number:
  US09/789,117
• Publication Number:
  US 20010034700A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A method for establishing lease agreement terms between a lessee and a lessor prior to entering into a lease agreement between the lessee and the lessor for leasing a vehicle to the lessee includes identifying a plurality of vehicle lease products for a particular lessee, including categorizing each identified vehicle lease product into one of at least two likelihood of lease success classes. At least one of the identified vehicle lease products for further action and an application for the selected vehicle lease product to a lessor. The lessee is rated into one of a plurality of risk categories and a security deposit amount required for the vehicle lease product is established based at least in part upon the lessee rating. Vehicle lease products may be identified and categorized based upon desired vehicle type information, lease term information, and lessee financial information entered into a computer system which includes a vehicle inventory database and software for carrying out such identification and categorization. The lessee rating may be established based upon lessee financial information into a computer system which includes a credit risk database, retrieved lessee credit history information from at least one accessible credit history database. The amount payable from the lessor to the seller is also limited in the subject method.

Claims

1. A method for establishing lease agreement terms between a lessee and a lessor prior to entering into a lease agreement between the lessee and the lessor for leasing a vehicle to the lessee, comprising the steps of:

(a) identifying a plurality of vehicle lease products for the lessee, including categorizing each identified vehicle lease product into one of at least two likelihood of lease success classes;

(b) selecting at least one of the identified vehicle lease products for further action;

(c) submitting an application for the selected vehicle lease product to the lessor;

(d) rating the lessee into one of a plurality of risk categories;

(e) establishing a security deposit amount required for the vehicle lease product based at least in part upon the rating made in step (d).

2. The method of

claim 1

, wherein step (a) includes (i) entering desired vehicle type information into a computer system, and (ii) comparing entered vehicle type information with information contained in a vehicle inventory database of the computer system.

3. The method of

claim 2

, wherein step (a) further includes (iii) entering lease term information into the computer system, (iv) entering lessee financial information into the computer system, and (v) categorizing each vehicle lease product based at least in part upon entered lease term information and entered lessee financial information.

4. The method of

claim 1

, wherein step (d) includes (i) entering lessee financial information into a computer system, (ii) retrieving lessee credit history information from at least one accessible credit history database, and (iii) establishing the lessee risk category based at least in part upon comparison of entered lessee financial information and retrieved lessee credit history information with a credit risk database.

5. The method of

claim 1

wherein steps (a) and (b) are performed using a seller lease software engine and associated computer system, and wherein steps (d), and (e) are performed using a lessor lease assessment software engine and associated computer system.

6. The method of

claim 5

wherein the seller computer system and the lessor computer system are connected via a communications link, and step (c) is performed by electronically submitting application information from the seller computer system to the lessor computer system over the communications link.

7. The method of

claim 5

wherein step (e) is performed by reference to a stored table of risk categories and corresponding security deposit amounts.

8. A method for leasing a vehicle owned by a seller to a lessee by establishing a lease agreement between the lessee and a lessor, comprising the steps of:

(a) obtaining lessee information including place of employment and place of residence;

(b) requiring the seller to certify to the lessor that the seller has verified the place of employment information and place of residence information obtained in step (a);

(c) selecting at least one vehicle lease product for the lessee, the vehicle lease product identifying the vehicle to be leased and a plurality of lease terms including vehicle selling price and down payment amount;

(d) submitting information for the selected vehicle lease product as an application for lease to the lessor, the submitted information including vehicle identification information and lease term information;

(e) rating the lessee into one of a plurality of risk categories;

(f) determining a lessee security deposit required to establish the lease agreement based at least in part upon the rating made in step (e);

(g) entering into the lease agreement between the lessee and the lessor, including transferring the lessee security deposit of step (h) from the lessee to the lessor; and

(h) transferring a monetary amount from the lessor to the seller, the transferred monetary amount being the lower of at least two possible amounts.

9. The method of

claim 8

wherein in step (h) the monetary amount transferred to the seller is the lower of:

(1) an established wholesale value of the vehicle being leased;

or

(2) a vehicle selling price less both (i) a predetermined monetary amount and (ii) the down payment amount paid by the lessee to the seller.

10. The method of

claim 9

wherein steps (a) and (c) are performed using a seller lease software engine and associated computer system, and wherein steps (e) and (f) are performed using a lessor lease assessment software engine and associated computer system.

11. The method of

claim 10

wherein the seller computer system and the lessor computer system are connected via a communications link, and step (d) is performed by electronically submitting application information from the seller computer system to the lessor computer system over the communications link.

12. The method of

claim 8

, further comprising the step of:

(i) sending credit rehabilitation information materials to the lessee after step (g).

13. The method of

claim 8

, further comprising the step of:

(j) tracking a payment status of the lessee; and

(k) if the lessee fails to make a timely payment, sending credit history rehabilitation information materials to the lessee.

14. A computer-implemented method for leasing a vehicle owned by a seller to a lessee, where the lessee has a poor credit history, comprising the steps of:

(a) utilizing a software module which calculates a monetary amount payable from a lessor to the seller upon entry into the lease agreement between the lessee and the lessor and limits such calculated monetary amount to the lesser of;

(i) a maximum wholesale value of the vehicle established by the lessor;

or

(ii) the vehicle selling price less both (1) a predetermined monetary amount and (2) a down payment amount to be paid by the lessee to the seller.

15. The method of

claim 14

, comprising the further steps of:

(b) electronically generating at least one vehicle lease product for the lessee, the vehicle lease product identifying the vehicle to be leased and a plurality of lease terms including vehicle selling price and down payment amount;

(c) electronically submitting information for the selected vehicle lease product as an application for lease to the lessor, the submitted information including vehicle identification information and lease term information;

(d) providing a software module for rating the lessee into one of a plurality of risk categories; and

(e) determining a required lessee security deposit amount for the lease agreement based at least in part upon the rating made in step (d).

16. A computer based leasing system for establishing vehicle lease terms between a lessor and a lessee, a vehicle to be leased being owned by a seller, comprising:

a seller computer system including a lease development software engine operable therewith, a vehicle inventory database stored in memory, a display device, and a user interface device;

wherein the lease development software engine includes at least one input module operable to generate at least one lessee information input display screen enabling a user to input lessee identifying information, lessee financial information, lessee desired vehicle information, and lessee desired lease term information;

wherein the lease development software engine includes a lease identification module operable to identify a plurality of vehicle lease products for the lessee by comparing entered lessee desired vehicle information with records within the vehicle inventory database;

wherein the lease identification module is further operable to categorize each of the identified vehicle lease products into one of at least two likelihood of lease success classes based at least in part upon entered lessee financial information, and to generate a display of the identified vehicle lease products where each displayed vehicle lease product includes an associated visible display feature which identifies its associated likelihood of success class;

a lessor computer system including a lease evaluation software engine operable therewith and a risk assessment database stored in memory;

a communications link between the seller computer system and the lessor computer system;

wherein the lease development software engine includes a lease application submission module for electronically transmitting vehicle lease product information and lessee information to the lessor computer system, the transmitted lease product information including at least vehicle identification information, vehicle selling price information, and down payment information, and the transmitted lessee information including at least lessee financial information and lessee identifying information;

wherein the lease evaluation software engine includes at least one lessee rating module operable to classify the lessee into one of a plurality of risk categories based at least in part upon comparing lessee financial information to information contained within the risk assessment database; and

wherein the lease evaluation software engine is further operable to establish a required lessee security deposit according to the risk category classification made by the lessee rating module, each risk category including an associated, predetermined lessee security deposit amount.

17. The computer based leasing system of

claim 16

, further comprising:

a communications link from the lessor computer system to a credit tracking company computer system which includes at least one credit history database including credit records for a plurality of individuals; and

wherein the lessee rating module is operable to communicate with the credit tracking company computer system to retrieve a credit history record of the lessee from the credit history database before classifying the lessee into a risk category.

18. The computer based leasing system of

claim 16

wherein the lease evaluation software engine is further operable to electronically communicate required security deposit information to the seller computer system.

19. A computer based leasing system for establishing vehicle lease terms between a lessor and a lessee, the vehicle to be leased being owned by a seller, comprising:

a lessor computer system including a lease evaluation software engine operable therewith and a risk assessment database stored in memory;

wherein the lease evaluation software engine includes at least one lessee rating module operable to classify the lessee into one of a plurality of risk categories based at least in part upon comparing lessee financial information to information contained within the risk assessment database; and

wherein the lease evaluation software engine is further operable to establish a required lessee security deposit according to the risk category classification made by the lessee rating module, each risk category including an associated, predetermined lessee security deposit amount.

20. The computer based leasing system of

claim 19

, further comprising:

a seller computer system including a lease development software engine operable therewith, a vehicle inventory database stored in memory, a display device, and a user interface device;

a communications link between the seller computer system and the lessor computer system;

wherein the lease development software engine includes at least one input module operable to generate at least one lessee information input display screen enabling a user to input at least lessee identifying information, lessee financial information, lessee desired vehicle information, and lessee desired lease term information via the user interface device; and

wherein the lease development software engine includes a lease identification module operable to identify a plurality of vehicle lease products for the lessee by comparing entered lessee desired vehicle information with records within the vehicle inventor database.

21. The computer based leasing system of

claim 19

:

wherein the lease development software engine includes a lease application submission module for electronically transmitting vehicle lease product information and lessee information to the lessor computer system, the transmitted lease product information including at least vehicle identification information, vehicle selling price information, and down payment information, and the transmitted lessee information including at least lessee income information and lessee identifying information.

22. The computer-based leasing system of

claim 19

wherein the lease evaluation software engine includes a lease application receiving module for electronically receiving lease application information.

23. The computer-based leasing system of

claim 19

wherein the lease evaluation software engine includes a module which calculates a monetary amount payable from a lessor to the seller upon entry into the lease agreement between the lessee and the lessor and limits such calculated monetary amount to the lesser of:

(i) a maximum wholesale value of the vehicle established by the lessor;

or

(ii) a vehicle selling price less both (1) a predetermined monetary amount and (2) a down payment amount to be paid by the lessee to the seller.

24. A computer-based leasing system for establishing vehicle lease terms between a lessor and a lessee, the vehicle to be leased being owned by a seller, comprising:

means for storing a seller vehicle inventory database;

means for inputting lessee identifying information, lessee financial information, lessee desired vehicle information, and lessee desired lease term information;

means for identifying a plurality of vehicle lease products for the lessee by comparing entered lessee desired vehicle information with records within the seller vehicle inventory database;

means for categorizing each of the identified vehicle lease products into one of at least two likelihood of lease success classes based at least in part upon entered lessee financial information;

means for generating a display of the identified vehicle lease products where each displayed vehicle lease product includes an associated visible display feature which identifies its associated likelihood of success class;

means for storing a lessor a risk assessment database;

means for retrieving a lessee credit history report from an accessible credit history database;

means for classifying the lessee into one of a plurality of risk categories based at least in part upon a comparison of both lessee financial information and lessee credit history information to information contained within the lessor risk assessment database; and

means for establishing a required lessee security deposit according to the classified risk category, each risk category including an associated, predetermined lessee security deposit amount.

25. The computer-based leasing system of

claim 24

, further comprising:

means for tracking lease payments by a lessee, said means including means for automatically generating a credit rehabilitation mailing to the lessee if the lessee fails to make a lease payment in a timely manner.