Method and system for leasing motor vehicles to credit challenged consumers

• US 7,860,764 B1
• Filed: 10/18/2001
• Issued: 12/28/2010
• Est. Priority Date: 10/19/2000
• Status: Active Grant

• Current Assignee: Auto Trakk LLC
• Original Assignee: Auto Trakk LLC
• Inventors: Alexander, Blaise, Falls, Joan M., Yeager, Matthew, Puglia, Les
• Primary Examiner(s): Trammell; James P
• Assistant Examiner(s): LIU, I JUNG
• Application Number:
  US10/002,948
• Time in Patent Office: 3,358 Days
• Field of Search: 705 38- 45, 205 50-333, 210/170.08, 210/171
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• 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

Abstract

A system is provided for leasing motor vehicles to credit challenged consumers or consumers that do not qualify for conventional financing. The system utilizes a short term prepaid lease in combination with a device utilizing microprocessor technology installed in the motor vehicle to encourage payment. The consumer pays in advance to use the motor vehicle for a predetermined lease period. If the consumer does not make the prepayment, the device installed in the vehicle prevents the vehicle from operating. The system is used to make a determination as to the amount of a weekly payment a credit challenged consumer (“Consumer”) can afford. Using the weekly payment amount, the system then extrapolates the value of a vehicle appropriate for the Consumer'"'"'s payment ability. Once the lease has been executed, a predetermined operating time is loaded into the device, which is connected to the vehicle'"'"'s ignition system. The device renders the ignition system inoperable upon there being no authorized operating time remaining in the device. Each week the Consumer prepays for the next week, and upon bank clearing of the payment, an additional week of preloaded operating time is authorized by entering data into the device connected to the ignition system.

Claims

1. A system for leasing a motor vehicle to a credit challenged consumer comprising:

a device configured to render the vehicle operable for a predetermined period of time, the vehicle otherwise being inoperable with the installed device;

means for obtaining a funded lease for the vehicle, the means for obtaining being configured to compute at least one predetermined financial parameter in electronic form based on at least one financial parameter associated with the consumer; and

a means for activating the device upon payment of a predetermined lease amount;

wherein the means for obtaining comprises a microprocessor and the at least one predetermined financial parameter in electronic form is selected from the group consisting of a dollar amount for a revolving line of credit obtained by a leasing company from a lending institution to fund the lease;

an interest rate to be paid on the revolving line of credit;

insurance coverage appropriate for the funded lease;

a vehicle appropriate for a consumer;

a lease reviewer for approving, funding and posting the lease;

a consumer appropriate for the funded lease;

at least one predetermined form and information used by the reviewer;

predetermined information used by a vehicle dealership;

predetermined information used by the leasing company, predetermined information used by a third party, and combinations thereof, and the at least one predetermined financial parameter is selected from the group consisting of a consumer'"'"'s weekly income, job history, residential stability, available amount of cash, available trade equity and an amount of equity required to complete a lease transaction.

2. The system of claim 1 wherein the funded lease is funded by a leasing company and the means for obtaining a funded lease comprises means for calculating a revolving line of credit substantially equal to an amount of business anticipated during a predetermined period for the leasing company, using the formula:

number of deals per month×

number of months×

average deal value($).

3. The system of claim 1 wherein the device is configured to render the vehicle operable for a predetermined period of time comprises a device with a microprocessor connected to the vehicle'"'"'s ignition system to prevent starting of the vehicle without a predetermined authorization.

4. The system of claim 3 wherein the means for activating the device comprises:

the microprocessor configured to, upon delivery of the vehicle to the customer, receive a plurality of predetermined authorization codes, each of the codes upon activation rendering the vehicle operable for the predetermined period;

wherein one authorization code of the plurality of predetermined authorization codes being supplied to the customer for a paid predetermined period;

the authorization code for the paid predetermined period, rendering the vehicle operable for the predetermined period when entered into the microprocessor.

5. The system of claim 4 wherein the predetermined period is selected from the group consisting of weekly, bi-weekly and monthly.

6. The system of claim 4 wherein the plurality of predetermined authorization codes includes an emergency code for allowing the vehicle to be operated for a period of predetermined short duration in response to an emergency and a reset code for resetting a previously activated emergency code.

7. The system of claim 1 further comprise a device for tracking the vehicle selected from the group consisting of a Global Positional System device and a Radio Frequency Identification device.

8. The system of claim 1 wherein the means for activating the device includes transferring an authorization code selected from the group consisting of using a keypad, via radio waves and via a cellular telephone.