Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Finance
Reexamination Certificate
1998-12-21
2001-07-17
Millin, Vincent (Department: 2764)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Finance
Reexamination Certificate
active
06263320
ABSTRACT:
BACKGROUND TO THE INVENTION
The present invention relates to a method of financing the acquisition of an automobile and to a data processing system for implementing such a method.
DESCRIPTION OF THE PRIOR ART
The purchase of an automobile, in particular a new automobile, constitutes a significant financial investment. Often, the purchase of an automobile represents the second biggest purchase of an individual after the purchase of real estate. A variety of different financial products exists to assist in the purchase of a vehicle. Typically, such financial products require the purchaser of the vehicle to pay back a loan or to lease the vehicle for a period of time after delivery has been taken of the vehicle. Such financial products do not facilitate a potential purchaser of an automobile to save in advance in order to fund the automobile purchase. This disadvantage is a particularly acute for younger purchasers, especially those in the 16 to 25 year old age group. Younger persons are likely to have difficulty entering a loan, lease or other finance agreement on an automobile. Accordingly, people in that age group often find it difficult to purchase a new automobile, or even a pre-owned automobile, meeting certain safety criteria and most particularly having the latest safety features, for example a driver's air bag, anti-lock brakes, etc.
As the number of automobiles on the roads increases, and as the number of younger people driving automobiles increases, there is a continuing growing need for young people to drive safe automobiles, and to be able to finance the purchase of such automobiles. Road traffic accidents amongst drivers of up to 25 years old have enormous socio-economic effects on both local communities and general resources. In some countries, automobiles account for 80% of deaths in the 17 to 25 year old age group. In some countries, the automobile constitutes the most likely instrument of death up to the age of 44. For example, sons in the age group 17 to 25 years old are nine times more likely to crash an automobile than their fathers. In some countries, drivers under the age of 21 are involved in around one quarter of the fatal road crashes occurring every year. Medical trauma as a result of automobile accidents primarily occurs to young people. This is a major cause for taking young people out of their productive years.
The average parent spends a significant sum bringing up children and parents are becoming more aware about the health and safety of their children. There is also a growing awareness of the importance of automobile crash performance and safety design in the purchase of automobiles by adults. However, when young people purchase automobiles, crash performance and safety design are unlikely to figure highly in the purchase decision. Often the first automobile purchased by a young person is an older pre-owned vehicle without the latest safety features. Such a purchase decision is typically made not only because of the unavailability of finance but also because of the relative unimportance placed on safety by the young person.
There is thus a need in the art for a method for permitting potential owners of automobiles, in particular young people, to be able to acquire new automobiles which are likely to be more safe than pre-owned vehicles, and most particularly have a high safety specification. There is also a need in the art for financial products directed specifically at the acquisition of new automobiles by or for younger persons to enable new automobiles to be more affordable for younger persons.
SUMMARY OF THE INVENTION
Accordingly, the present invention provides a method of financing the acquisition of an automobile, the method comprising the steps of: (a) from time to time establishing a list of a plurality of automobiles; and (b) selling at least one financial product to a person selected from the group consisting of a potential owner of an automobile on the list and a third party who identifies the potential owner as a beneficiary of the at least one financial product, the at least one financial product having a maturity date later than a date of sale thereof and the financial product having as a condition of sale the requirement for any proceeds thereof on maturity to be used to purchase an automobile then on the list.
Preferably, the method further comprises the step of: (c) at the maturity date selling an automobile then on the list to the potential owner, the seller being selected from the group consisting of an automobile manufacturer, a dealer of an automobile manufacturer and an agent of an automobile manufacturer.
In accordance with the preferred method a purchase scheme and discount club is established to facilitate the acquisition of safe automobiles by or for persons typically in the 16 to 25 years' age range. The members of the club, who are held on a computer database, may comprise the potential owners and the third parties to whom the financial products are sold.
The list may be held on a computer database. The list may be updated with newer and/or safer models on a periodic basis, for example annually. Models which are on the list but have been discontinued by the manufacturer may be deleted automatically from the list.
Preferably, the list is administered by an administrator which is independent of any particular automobile manufacturer. The list may be established by the administrator or by a third party organisation. The administrator may be a club or association for automobile owners and/or drivers. The third party organisation may be a governmental organisation or agency, for example a government department responsible for automobile safety, or a non-governmental organisation or agency, such as a consumers' organisation or an automobile testing organisation. The third party organisation may alternatively be a trade association of automobile manufacturers.
The administrator may sell financial products direct to the said person. Alternatively, the administrator may authorise at least one financial products provider to sell financial products to the said person. The financial products may be sold through third party agents of the administrator and/or of the financial services provider. The financial products may comprise insurance policies, investments, saving schemes, mutual funds, stocks and/or bonds. The financial products may be funded through a lump sum payment and/or periodic payments, such as monthly premiums.
The administrator may also sell other financial products and/or other services, or may authorise the sale of other financial products and other services, by third parties, to the said person. Those other financial products and services may be supplied at a price which is lower-than the price available to people other than those persons.
The automobile seller may provide to the administrator an undertaking to sell the automobile on the list at a price set by a predetermined formula, for example a pre-set percentage or dollar amount discount on the manufacturer's recommended or normal retail price for the automobile at the maturity date.
REFERENCES:
patent: 4722055 (1988-01-01), Roberts
patent: 4736294 (1988-04-01), Gill et al.
patent: 4752877 (1988-06-01), Roberts et al.
patent: 5809484 (1998-09-01), Mottola et al.
patent: 5987436 (1999-11-01), Halbrook
patent: 2183376 (1987-06-01), None
patent: 922036 (1992-12-01), None
Rovira Charles Al Expert v5 n2 p23(3) “A Settling of Accounts” Feb, 1990.
Danilunas Marija J
Soltmann Diana
Akers Geoffrey
Devonshire Promotions Limited
Millin Vincent
Wolf Greenfield & Sacks P.C.
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