US 2017/0255994 A1 · SYSTEM AND METHOD FOR DETERMINING INTEREST RATES AND INTEREST RATE BUY DOWN FOR INDIRECT FINANCING TRANSACTIONS

Abstract

Systems and computer-implemented methods are provided to determine recurring loan payments for a financing plan. The system is configured to determine a predetermined interest rate based on a comparison of the expected profits to configurable threshold profit levels; and compute a value for the recurring loan payments based on the initial loan amount, the predetermined interest rate and the predetermined term and frequency of payments. A new interest rate may be computed in response to receiving an interest rate buy down activation from a user device, wherein a portion of the expected profits is applied to buy down the interest. Comparative financing plans are generated including and excluding the sale of products wherein loan parameters and interest rates are adjusted so that the loan payments for a first financing plan are the same as or within a configurable range of the loan payments for a second financing plan.

Claims20

Dependent claims

A system for determining an amount of a recurring loan payment for a financing plan for a sale transaction given an initial loan amount, predetermined term and predetermined frequency of payments, the system comprising a transaction server having a computer processor configured to:

(a) determine the profits expected from the sale transaction;
(b) determine a predetermined interest rate based on the expected profits;
(c) compute a first value for the recurring loan payment amount, based on the initial loan amount, the predetermined interest rate, and the predetermined term and frequency of payments;
and
(d) output the predetermined interest rate and the first value for the recurring loan payment amount;
wherein the computer processor is configured to determine the predetermined interest rate at step (b) by comparing the expected profits to one or more configurable threshold profit levels and select an interest rate based at least in part on such comparison.

3 more elements

A computer-implemented method for determining an amount of a recurring loan payment for a financing plan for a sale transaction given an initial loan amount, predetermined term and predetermined frequency of payments, the method comprising:

(a) determining by a computer processor the profits expected from the sale transaction;
(b) determining by the computer processor a predetermined interest rate based on the expected profits;
(c) computing by the computer processor a first value for the recurring loan payment amount, based on the initial loan amount, the predetermined interest rate, and the predetermined term and frequency of payments;
and
(d) outputting the predetermined interest rate and the first value for the recurring loan payment amount;
wherein determining the predetermined interest rate at step (b) comprises comparing by the computer processor the expected profits to one or more configurable threshold profit levels and selecting an interest rate based at least in part on such comparison.

3 more elements

Dependencies are inferred from the claim text.

System and method for determining interest rates and interest rate buy down for indirect financing transactions

Life of this patent

System and method for determining interest rates and interest rate buy down for indirect financing transactions

Life of this patent

Abstract

Claims20