Data processing methods and apparatus for managing vehicle financing

• US 4,736,294 A
• Filed: 06/23/1987
• Issued: 04/05/1988
• Est. Priority Date: 01/11/1985
• Status: Expired due to Term

• Current Assignee: Royal Bank of Canada (The PNC Financial Services Group, Inc.)
• Original Assignee: Royal Bank of Canada (The PNC Financial Services Group, Inc.)
• Inventors: Lai, John, Singer, David, Ryan, John P., Gill, Gwyneth, Le Grand, David A., Diamand, Nicholas T. L., Bernatchez, Alexandre J.
• Primary Examiner(s): Smith, Jerry
• Assistant Examiner(s): Tbui, Kim Thanh
• Application Number:
  US07/065,176
• Time in Patent Office: 287 Days
• Field of Search: 364/408, 364/401, 364/406, 364/705, 364/715, 364/719, 235/379
• US Class Current: 705/38
• 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

Data processing methods and apparatus for managing vehicle financing are disclosed. The data processing system provides information to assist in granting a loan applicant credit, processes the loan, and determinates at the time of making the loan a residual value of the vehicle at a predetermined option date.

Claims

1. A system including a programmed data processor for administering a vehicle loan financing transaction, said financing being granted for a specific amount, loan term and interest rate, and having a loan balance, said system comprising:

data entry means for entering information regarding the applicant, vehicle and total financing sought;

means for determining loan eligibility of the applicant and the vehicle;

means for computing a residual value of the vehicle based upon the type of vehicle and the loan term;

means for computing a periodic loan payment amount based on the difference between the total financing sought and the residual value and on periodic interest payments on the residual value;

means for monitoring status of the loan during the term of the loan, including means for determining whether the end of the term has been reached; and

means for closing out the loan at the end of the term, including means for optionally paying the residual value to the applicant by applying the residual value to the loan balance.

2. The system of claim 1, further comprising:

means for computing an excess charge based on the usage of the vehicle over the term of the loan; and

means for computing a new residual value from the excess charge and the residual value, said new residual value becoming the value optionally applied to the loan balance in closing out the loan.

3. The system of claim 1, wherein said residual value is computed by applying to the sticker price of the vehicle a residual value factor selected from a data file of such factors responsive to the input information regarding the vehicle and the loan term.

4. The system of claim 1, wherein said means for determining the loan eligibility of the applicant and the vehicle further comprises:

data terminal means for entering data identifying the applicant;

data communication means for transmitting said data identifying the applicant to a remote data processing system;

means associated with said remote data processing system for selecting stored financial information regarding the identified applicant from a data file of said selected stored financial information;

data communication means for transmitting the selected stored financial information regarding the applicant to said data terminal means originating said applicant identifying data; and

data display means at said data terminal for displaying said selected financial information.

5. The system of claim 4, wherein said remote data processing system is a central computer system maintained by a credit bureau.

6. A method for administering vehicle financing using a programmable data processor, comprising the steps of:

entering and storing signals representative of data regarding a loan, including loan applicant, vehicle, interest rate, loan term, option date and total amount of financing sought, said loan having, at any given time, a loan balance;

computing a residual value of the vehicle, based upon the stored signals representative of vehicle and loan term information;

computing a periodic principal and interest payment based upon the difference, over the loan term, between the total amount of financing sought and the residual value including interest thereon;

computing the periodic interest on the residual value;

processing the periodic principal and interest payment and the periodic interest on the residual value to obtain the periodic loan payment;

retrieving financial information concerning the loan applicant from a file of stored signals representative of said financial information;

analyzing said financial information to compute a credit score for use in determining whether to grant credit to the applicant;

creating a new loan account;

monitoring the status of said loan account to determine when the option date is reached, said option date being the last date of the term of said loan; and

at the option of the borrower, paying the residual value to the borrower by applying the residual value to the loan balance to close out the loan at the end of the term.

7. The method of claim 6, wherein said step of computing the residual value of the vehicle further comprises:

looking up a residual value factor in a data file of said residual value factors; and

multiplying the residual value factor by the vehicle price to compute the residual value.

8. The method of claim 6, wherein said step of applying said residual value to close out the loan further comprises:

computing an excess charge based upon the usage of the vehicle during the term of the loan;

computing a new residual value using the excess charge and the residual value; and

optionally applying the new residual value to the loan balance to close out the loan at the end of the term.