Method of on-line auctioning for leases

• US 7,882,009 B2
• Filed: 01/14/2002
• Issued: 02/01/2011
• Est. Priority Date: 01/16/2001
• Status: Expired due to Fees

• Current Assignee: Donald R. Fralic
• Original Assignee: Donald R. Fralic
• Inventors: Fralic, Donald R.
• Primary Examiner(s): Dixon; Thomas
• Assistant Examiner(s): Vizvary; Gerald C
• Application Number:
  US10/047,366
• Publication Number:
  US 20040039678A1
• Time in Patent Office: 3,305 Days
• Field of Search: 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

The present invention is a reverse auction/lease and review/evaluation method to be used on the Internet. The method permits quantitative analysis of competitive leasing offers according to financial fundamentals and lessee defined qualitative variables and their relative weighting. The invention includes multiple Internet displayable screens which depict and permit inclusion of quantitative and qualitative variables as defined by the lessee. The invention also includes a scoring system by which the lessee can objectively and quantitatively measure competitive bids of prospective lessors participating in a reverse auction conducted on the Internet.

Claims

1. A lease auction method comprising the steps of:

(a) providing to at least one lessor'"'"'s computer via a computer network a first plurality of lessee entered qualitative lessor variables and a first plurality of lessee entered quantitative lessor data regarding a lease input at a lessee'"'"'s computer;

(b) receiving from each lessor'"'"'s computer via the computer network a second plurality of lessor entered qualitative lessor variables and a second plurality of lessor entered quantitative lessor data regarding the lease;

(c) receiving from the lessee'"'"'s computer via the computer network for at least one of the lessor entered qualitative lessor variables for each lessor at least one of a grade and a relative weight related to an importance of the at least one lessor entered qualitative lessor variable to the lessee;

(d) for each lessor, processing the at least one of the grade and the relative weight received for the at least one lessor entered qualitative lessor variable and the lessor entered quantitative lessor data to determine a weighted total score;

(e) ranking the weighted total scores;

(f) displaying the ranked weighted total scores on the lessee'"'"'s computer and each lessor'"'"'s computer via the computer network; and

(g) repeating steps (c) through (f) each time a change of at least one of the lessor entered qualitative lessor variables or at least one of the lessor entered quantitative lessor data is received from at least one of the lessor'"'"'s computers via the computer network, wherein the lessor entered qualitative lessor variables and the lessee entered qualitative lessor variables each include at least one of the following;

lessor'"'"'s lease documents;

lessor'"'"'s reputation;

lessor'"'"'s knowledge of the item being leased;

lessor'"'"'s status as a private or public entity; and

whether the lessor is also a vendor.

2. The lease auction method as set forth in claim 1, further including the steps of:

receiving from the lessee'"'"'s computer via the computer network a third plurality of lessee entered qualitative lessor variables and a third plurality of lessee entered quantitative lessor data;

processing the third plurality of lessee entered qualitative lessor variables and the third plurality of lessee entered quantitative lessor data to obtain a first lease simulation outcome;

displaying the first lease simulation outcome on the lessee'"'"'s computer via the computer network;

receiving from the lessee'"'"'s computer via the computer network at least one of a fourth plurality of lessee entered qualitative lessor variables and a fourth plurality of lessee entered quantitative lessor data;

processing the at least one of the fourth plurality of lessee entered qualitative lessor variables and the fourth plurality of lessee entered quantitative lessor data to obtain a second lease simulation outcome;

displaying the second lease simulation outcome on the lessee'"'"'s computer via the computer network; and

providing to the at least one lessor'"'"'s computer in step (a), as the first plurality of lessee entered qualitative lessor variables and the first plurality of lessee entered quantitative lessor data, the third or fourth plurality of lessee entered qualitative lessor variables and the corresponding third or fourth plurality of lessee entered quantitative lessor data, respectively, based on the first or second lease simulation outcome provided to the lessee'"'"'s computer via the computer network.

3. The lease auction method as set forth in claim 2, further including the steps of:

commencing the auction after completing one or more lease simulations; and

terminating the auction at one of (i) a predetermined time and (ii) after expiration of a predetermined interval.

4. The lease auction method as set forth in claim 1, wherein the lessor entered quantitative lessor data and the lessee entered quantitative lessor data each include at least one of the following:

borrowing rate;

term of lease;

estimated lease payments;

total net present value (NPV);

acquisition cost; and

ratio of total NPV divided by acquisition cost.