Method of creating an index of residual values for leased assets, transferring residual value risk, and creating lease securitizations

• US 6,622,129 B1
• Filed: 02/14/2000
• Issued: 09/16/2003
• Est. Priority Date: 02/14/2000
• Status: Expired due to Fees

• Current Assignee: Brian L. Whitworth
• Original Assignee: Brian L. Whitworth
• Inventors: Whitworth, Brian L.
• Primary Examiner(s): Rice, Kenneth R.
• Application Number:
  US09/503,545
• Time in Patent Office: 1,310 Days
• Field of Search: 705/30, 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A method of creating an index of residual values for leased assets such as vehicles, transferring residual value risk, and creating lease securitizations. The index of residual values includes valuation information pertaining to different types of vehicles, different models and submodels of vehicles, different combinations of vehicle options, different vehicle model years, etc. The residual value index is updated with subsequent valuations of the leased assets and is employed to facilitate the transfer of residual value risk and create lease securitizations via mechanisms such as residual value futures, options, bonds and insurance products.

Claims

1. A method of transferring residual value risk associated with future market value of automobiles, the method comprising the step of:

trading an exchange-traded contract pertaining to residual value risk associated with a future market value of two or more types of automobiles in consideration of an index of residual value for the two or more types of automobiles.

2. The method of transferring residual value risk associated with future market value of automobiles of claim 1, the method further comprising the step of:

calculating a value of the exchange-traded contract at one or more future points in time in consideration of a subsequent calculation of an index of residual value based upon subsequent market values of automobiles.

3. A method of transferring residual value risk associated with future market value of automobiles, the method comprising the steps of:

listing for trading an exchange-traded contract pertaining to residual value risk associated with a future market value of two or more types of automobiles in consideration of an index of residual value for the two or more types of automobiles;

calculating a value of the exchange-traded contract at one or more future points in time in consideration of a subsequent calculation of an index of residual value based upon subsequent market values of automobiles; and

settling a trade in the exchange-traded contract in consideration of the subsequent calculation of an index of residual value.

4. A method of transferring residual value risk associated with future market value of automobiles, the method comprising the steps of:

determining terms of an exchange-traded contract pertaining to a residual value risk associated with a future market value of automobiles in consideration of an index of residual value for two or more types of automobiles;

obtaining market values of automobiles at one or more subsequent times;

calculating a value for a residual value index at the one or more subsequent times; and

settling one or more trades in the exchange-traded contract in consideration of the one or more subsequent calculations of an index of residual value.