Method of on-line auctioning for leases

• US 20040039678A1
• Filed: 01/14/2002
• Published: 02/26/2004
• Est. Priority Date: 01/16/2001
• Status: Active Grant

• Current Assignee: Donald R. Fralic
• Original Assignee: Donald R. Fralic
• Inventors: Fralic, Donald R.
• Granted Patent: US 7,882,009 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

The present invention is a reverse auction/lease and review/evaluation method to be used on the Internet. The method permits quantitative analysis of competitive leasing offers according to financial fundamentals and lessee defined qualitative variables and their relative weighting. The invention includes multiple Internet displayable screens which depict and permit inclusion of quantitative and qualitative variables as defined by the lessee. The invention also includes a scoring system by which the lessee can objectively and quantitatively measure competitive bids of prospective lessors participating in a reverse auction conducted on the Internet.

Claims

1. A lease auction method comprising the steps of:

(a) providing to at least one lessor'"'"'s computer via a computer network a first plurality of lessee qualitative variables and a first plurality of lessee quantitative data regarding a lease received at a lessee'"'"'s computer;

(b) receiving from each lessor'"'"'s computer via the computer network a second plurality of lessor qualitative variables and a second plurality of lessor quantitative data regarding the lease;

(c) receiving from the lessee'"'"'s computer via the computer network for at least one of the second qualitative variables for each lessor at least one of a grade and a relative weight related to an importance of the at least one second qualitative variable to the lessee;

(d) for each lessor, processing the at least one of the grade and the relative weight received for the at least one second qualitative variable and the lessor quantitative data to determining a weighted total score;

(e) ranking the weighted total scores;

(f) providing the ranked weighted total scores to the lessee'"'"'s computer and each lessor'"'"'s computer via the computer network; and

(g) repeating steps (c) through (f) each time a change of at least one of the lessor qualitative variables or at least one of the lessor quantitative data is received from at least one of the lessor'"'"'s computers via the computer network.

2. The lease auction method as set forth in claim 1, further including the steps of:

receiving from the lessee'"'"'s computer via the computer network a first plurality of lessee qualitative variables and a first plurality of lessee quantitative data;

processing the first plurality of lessee qualitative variables and the first plurality of lessee quantitative data to obtain a first lease simulation outcome;

providing the first lease simulation outcome to the lessee'"'"'s computer via the computer network;

receiving from the lessee'"'"'s computer via the computer network at least one of a second plurality of lessee qualitative variables and a second plurality of lessee quantitative data;

processing the at least one of the second plurality of lessee qualitative variables and the second plurality of lessee quantitative data to obtain a second lease simulation outcome;

providing the second lease simulation outcome to the lessee'"'"'s computer via the computer network; and

providing the first or second plurality of lessee qualitative variables and the corresponding first or second plurality of lessee quantitative data to the at least one lessor'"'"'s computer in step (a) based on the first or second lease simulation outcome provided to the lessee'"'"'s computer via the computer network.

3. The lease auction method as set forth in claim 2, further including the steps of:

commencing the auction after completing one or more lease simulations; and

terminating the auction at one of (i) a predetermined time and (ii) after expiration of a predetermined interval.

4. The lease auction method as set forth in claim 1, wherein the lessor qualitative variables and the lessee qualitative variables include at least one of the following:

lessor'"'"'s loan documents;

lessor'"'"'s reputation;

lessor'"'"'s knowledge of the item being leased;

lessor'"'"'s status as a private or public entity; and

whether the lessor is also a vendor.

5. The lease auction method as set forth in claim 1, wherein the lessor quantitative variables and lessee quantitative variables each include at least one of the following:

borrowing rate;

term of lease;

estimated lease payments;

total net present value (NPV);

acquisition cost; and

ratio of total NPV divided by acquisition cost.