Method and system for financing acquisition of vehicles

• US 7,689,484 B2
• Filed: 07/29/2003
• Issued: 03/30/2010
• Est. Priority Date: 07/29/2003
• Status: Active Grant

• Current Assignee: Ford Motor Company
• Original Assignee: Ford Motor Company
• Inventors: Johnson, Michael, Johnson, Bernie, Gayton, Bradley, Hall, Christopher, Polizzi, John
• Primary Examiner(s): Kazimi; Hani
• Assistant Examiner(s): SEE, CAROL A
• Application Number:
  US10/604,536
• Publication Number:
  US 20050027646A1
• Time in Patent Office: 2,436 Days
• Field of Search: None
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• 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
• 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

In one embodiment of the present invention, a method for financing acquisition of a vehicle is disclosed. The method comprises receiving a future interest in a vehicle in consideration for a future interest price upon transfer of a legal title in the vehicle in consideration for a legal title price.

Claims

1. A method for providing financing by a vehicle financing company for acquisition of a vehicle by a vehicle consumer, the method comprising:

receiving a future interest in a vehicle by a vehicle financing company in consideration for a future interest price paid by the vehicle financing company upon transfer of a legal title in the vehicle to a vehicle consumer in consideration for a legal title price for a legal title term, the legal title price being an amount of money paid for a present possessory interest in the vehicle, wherein the receiving step is accomplished at least partially by utilizing an at least one computer and at least one computer network;

providing financing by the vehicle financing company to the vehicle consumer for the legal title price of the vehicle;

determining by the vehicle financing company via the at least one computer an unrestricted legal title price based on the future interest price and a balance of the financing provided by the vehicle financing company;

receiving at or near the end of the legal title term the unrestricted legal title price; and

transferring the future interest to the vehicle consumer so that the vehicle consumer receives the future interest and unrestricted legal title in the vehicle.

2. The method of claim 1 further comprising determining a present/future interest ratio representing the ratio of the legal title price to the future interest price.

3. The method of claim 1 wherein receiving the unrestricted legal title price includes valuing the future interest price based on a time value of money and a present value of the vehicle.

4. The method of claim 1 wherein the future interest is a reversionary interest or a remainder.

5. The method of claim 1 further comprising transferring by a vehicle dealer the vehicle to the vehicle consumer.

6. The method of claim 1 further comprising receiving by the vehicle consumer the legal title in the vehicle.

7. The method of claim 2 wherein the present/future interest ratio is in a range of 3:

1 to 2;

3.

8. The method of claim 2 wherein the present/future interest ratio is based on one or more of the following factors:

a consumer trade-in of an existing vehicle, a residual value of the vehicle, or dealer promotions.

9. The method of claim 1 wherein the legal title term is in the range of one year to six years.

10. The method of claim 1 wherein the future interest vests upon expiration of a vesting period.

11. The method of claim 1 further comprising receiving the financed legal title price by the vehicle financing company through a first periodic payment made on a first periodic date and a second periodic payment made on a second periodic date during the legal title term, the legal title term beginning at the transfer of legal title to the vehicle consumer, wherein the second periodic payment date is after the first periodic payment date.

12. A method for transferring by a financing company legal title in personal property to a consumer, the method comprising:

receiving a future interest in a personal property by a financing company in consideration for a future interest price paid by the financing company upon transfer of a legal title in the personal property to the consumer in consideration for a legal title price for a legal title term, the legal title price being an amount of money paid for a present possessory interest in the personal property, wherein the receiving step is accomplished at least partially by utilizing an at least one computer and at least one computer network; and

providing financing by the financing company to the consumer for the legal title price of the personal property;

determining by the financing company via the at least one computer an unrestricted legal title price based on the future interest price and a balance of the financing being provided by the financing company;

receiving at or near the end of the legal title term the unrestricted legal title price; and

transferring the future interest to the consumer so that the consumer receives the future interest and unrestricted legal title in the personal property.

13. The method of claim 12 wherein the personal property is selected from the group consisting of:

a tangible personal property and an intangible personal property.

14. The method of claim 12 wherein the personal property is a good.

15. The method of claim 12 wherein the personal property is a vehicle.

16. The method of claim 12 further comprising:

receiving the unrestricted legal title price by valuing the future interest price based on a time value of money and a present value of the personal property.

17. A method for providing financing by a vehicle financing company for acquisition of a vehicle by a vehicle consumer, the method comprising:

receiving a future interest in a vehicle by a vehicle financing company in consideration for a future interest price paid by the vehicle financing company upon transfer of a legal title in the vehicle to a vehicle consumer in consideration for a legal title price for a legal title term, the legal title price being an amount of money paid for a present possessory interest in the vehicle, the future interest being a reversionary interest or a remainder, wherein the receiving step is accomplished at least partially by utilizing an at least one computer and at least one computer network;

determining via the at least one computer a present/future interest ratio representing the ratio of the legal title price to the future interest price;

providing financing by the vehicle financing company to the vehicle consumer for the legal title price of the vehicle; and

receiving the financed legal title price by the vehicle financing company through a first periodic payment made on a first periodic date and a second periodic payment made on a second periodic date during the legal title term, the legal title term beginning at the transfer of legal title to the vehicle consumer, wherein the second periodic payment date is after the first periodic payment date.