Transfer of risk of repair costs with renewal rights

• US 20080270193A1
• Filed: 04/27/2007
• Published: 10/30/2008
• Est. Priority Date: 04/27/2007
• Status: Abandoned Application

• Current Assignee: BTB, LLC
• Original Assignee: BTB, LLC
• Inventors: Beikmann, Todd A.
• Application Number:
  US11/796,193
• Publication Number:
  US 20080270193A1
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

Methods of transferring risk of costs for repairs, methods of providing funding for repair costs, and articles for transferring risk of repair costs. Articles may be service contracts, and the methods and articles may apply to one or more apparatuses, which may be motor vehicles, for instance. The methods and articles may include a right for the purchaser to renew a contract for one or more periods of time, or may include a provision to convert any unearned payment into extended funding for repair services in the event that anticipated payments are not made. A customer may pay for an initial term, after which the customer may renew for second or subsequent periods of time at the customer'"'"'s option. A motor vehicle service contract may terminate after a delineated number of miles is reached, and an auto-renewal status may be reached after a particular number of payments are made.

Claims

1. A method of transferring risk of repair costs for repairs to an apparatus, the method comprising at least:

providing a written document to be signed by an owner of the apparatus to form a contract wherein the contract provides for funding for repairs to the apparatus for a first period of time in exchange for a first payment and the contract provides the owner a right to renew the contract for at least a plurality of second periods of time subsequent to the first period of time upon submission of a second payment delineated in the contract for each second period of time.

2. The method of claim 1 wherein the first period of time and the second period of time, are each no less than one week and no more than one quarter of one year.

3. The method of claim 1 wherein the second periods of time are each one month.

4. The method of claim 1 wherein the funding for repairs is provided in accordance with a set of terms and the terms are substantially the same for the first period and at least one second period.

5. The method of claim 4 wherein the apparatus is a vehicle having an odometer and the terms change when the odometer reaches a distance reading delineated in the contract.

6. The method of claim 1 wherein the apparatus is a vehicle having an odometer and the contract terminates when the odometer reaches a distance reading delineated in the contract.

7. The method of claim 6 wherein the contract delineates a particular number of second payments after which the contract reaches an auto-renewal status during which the funding for repairs continues without further second payments until the odometer reaches the distance reading delineated in the contract.

8. The method of claim 1 further comprising entering into the contract with the owner to provide the funding for repairs.

9. The method of claim 1 further comprising in any order:

offering to a purchaser of the apparatus, at the time of a purchase of the apparatus, the transferring of risk of repair costs for repairs to the apparatus;

discussing the funding for repairs to the apparatus with the purchaser; and

providing the written document to the purchaser.

10. The method of claim 1 further comprising in any order:

advertising to potential customers regarding the transferring risk of repair costs for repairs to the apparatus;

receiving telephone calls from at least a portion of the potential customers in response to the advertising;

discussing the funding for repairs to the apparatus with the portion of the potential customers on the telephone; and

sending the written document to the portion of the potential customers wherein at least a fraction of the potential customers are the owners.

11. The method of claim 10 wherein the advertising to potential customers includes targeting at least one of purchasers of vehicles and purchasers of service contracts.

12. The method of claim 11 wherein:

the first period of time is no less than one week and no more than one half of one year;

at least a plurality of the second periods of time are each one month;

the apparatus is a vehicle having an odometer and the contract terminates when the odometer reaches a distance reading delineated in the contract;

the contract delineates a particular number of second payments after which the contract reaches an auto-renewal status and the coverage continues without additional second payments until the odometer reaches the distance reading delineated in the contract.

13. A method of providing funding of repair services for an apparatus, the method comprising at least:

providing a written document to be signed by an owner of the apparatus to form a contract wherein the contract provides funding for repair services for the apparatus for at least a period of time in exchange for at least a plurality of payments, and wherein the contract provides for any unearned portion of the payments to be converted to extended funding for repair services for the apparatus when and if the owner stops making payments before completion of an anticipated payment schedule.

14. The method of claim 13 wherein the apparatus is a vehicle having an odometer and the contract delineates a particular number of payments after which the funding for repair services continues without further payment until the odometer reaches a distance reading delineated in the contract.

15. The method of claim 13 further comprising in any order:

advertising to potential customers regarding funding of repair services;

receiving telephone calls from a portion of the potential customers in response to the advertising;

discussing the funding of repair services with the portion of the potential customers on the telephone;

sending the written document to the portion of the potential customers wherein at least a fraction of the potential customers are the owners; and

entering into the contract with at least a plurality of the owners to provide the funding of repair services.

16. The method of claim 15 wherein advertising to potential customers includes sending direct mail to at least one of purchasers of vehicles and purchasers of service contracts.

17. An article for transferring risk of repair costs for repairs to a motor vehicle, the article comprising a written document to be signed by an owner of the motor vehicle to form a contract to provide funding for repair services for the motor vehicle for a first period of time in exchange for a first payment and wherein the contract provides the owner a right to renew the contract for funding for repair services for a second period of time immediately subsequent to the first period of time upon submission of a second payment delineated in the contract, and wherein the contract provides the owner a right to repeatedly renew the contract for funding for repair services for a plurality of subsequent periods of time subsequent to the second period of time upon submission of subsequent payments delineated in the contract for each subsequent period of time.

18. The article of claim 17 wherein at least a plurality of the subsequent periods of time are each one month.

19. The article of claim 17 wherein the motor vehicle has an odometer and the contract terminates when the odometer reaches a distance reading delineated in the contract.

20. The article of claim 19 wherein the contract delineates a particular number of payments after which the contract reaches an auto-renewal status during which the funding for repair services continues without further subsequent payment until the odometer reaches the distance reading delineated in the contract.