Method of forecasting a residual value of a vehicle

A method of determining a lease payment of a first vehicle having first existent model years and first nonexistent model years with the first existent model years and the first nonexistent model years falling within a predetermined time frame, and the first vehicle further having a first vehicle identifier and a first set of attributes, said method identifying a plurality of second vehicles having second existent model years and second nonexistent model years with each of the second vehicles having a unique vehicle identifier, with one or more steps of said method being implemented by a processor having a non-transitory computer-readable storage medium with an executable application stored thereon, and said method comprising the steps of:

• populating a database with the first vehicle identifier for each of the first existent model years and the unique vehicle identifier of each of the plurality of second vehicles for each of the second existent model years to define an initial database without a vehicle identifier for each of the nonexistent model years;
• determining a second set of attributes for each of the plurality of second vehicles;
• comparing the first set of attributes with the second sets of attributes;
• selecting one of the plurality of second vehicles for each nonexistent model year of the first vehicle within the predetermined time frame, the selected one of the plurality of second vehicles having attributes from the second sets of attributes that are common with attributes from the first set of attributes;
• creating a proxy vehicle from the selected one of the plurality of second vehicles for each nonexistent model year of the first vehicle within the predetermined time frame, with the proxy vehicle having a proxy vehicle identifier;
• populating the initial database with the proxy vehicle identifier for each first nonexistent model year to create a comprehensive database;
• converting the proxy vehicle identifier for each first nonexistent model year into a monetary value;
• and
• utilizing the processor to calculate the residual value of the first vehicle utilizing the monetary value of the proxy vehicle;
• and
• utilizing the processor to determine the lease payment of the first vehicle using the calculated residual value.

A system for determining a lease payment of a first vehicle having first existent model years and first nonexistent model years with said first existent model years and said first nonexistent model years falling within a predetermined time frame, and said first vehicle further having a first vehicle identifier and a first set of attributes, said system identifying a plurality of second vehicles having second existent model years and second nonexistent model years with each of said second vehicles having a unique vehicle identifier and a second set of attributes, said system comprising:

• an initial database comprising said first vehicle identifier for each of said first existent model years and said unique vehicle identifier of each of said plurality of second vehicles for each of said second existent model years with said initial database being without a vehicle identifier for each of said first and second nonexistent model years;
• a comprehensive database comprising said initial database populated with a proxy vehicle identifier for said nonexistent model years of said first vehicle within said predetermined time frame with said proxy vehicle identifier identifying a proxy vehicle from a selected one of said plurality of second vehicles having attributes from said second set of attributes that are common with attributes from said first set of attributes;
• a computer comprising a processor and a storage medium with said initial database and said comprehensive database stored in said storage medium;
• a first application executable by said processor and comprising computer-readable instructions for converting said proxy vehicle identifier for each first nonexistent model year into a monetary value;
• and
• a second application executable by said processor and comprising computer-readable instructions for determining said lease payment of said first vehicle utilizing said monetary value.