# US 2017/0255994 A1 · System and method for determining interest rates and interest rate buy down for indirect financing transactions > Agents: this data is available as JSON from the patentgrep API and MCP server — see https://patentgrep.com/llms.txt - Number: US 2017/0255994 A1 - Document ID: US20170255994A1 - Status: Published application - Kind: A1 - Application number: 15/057,570 - Filed: 2016-03-01 - Published: 2017-09-07 - Earliest claimed: 2016-03-01 - Assignees: Pocketbook Protection Inc. - Applicants: Pocketbook Protection Inc. - Inventors: Raymond Keith RIEGER - Web page: https://patentgrep.com/patent/US20170255994A1 ## CPC - G06Q 40/03: Credit; Loans; Processing thereof - G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR ## 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. ## Claims ### Claim 1 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. ### Claim 2 (depends on 1) The system of claim 1 wherein the expected profits comprises the total profits from the sale of one or more aftermarket products in the transaction, and the computer processor is configured to identify a type of each of the one or more aftermarket products in the transaction and select the predetermined interest rate based at least in part on such identification. ### Claim 3 (depends on 1) The system of claim 1 wherein the computer processor is configured to adjust the predetermined interest rate based at least in part on a maximum loan payment amount as specified by a user on a user device in communication with the transaction server. ### Claim 4 (depends on 1) The system of claim 1 wherein the server is configured to accept, from a user device in communication with the transaction server, an activation of an interest rate buy down and an indication of the minimum profits to be retained and the computer processor is configured to compute a new interest rate, wherein a portion of the expected profits is applied to buy down the interest to the new interest rate, wherein the portion of the expected profits is the expected profits less the minimum profits to be retained. ### Claim 5 (depends on 4) The system of claim 4 wherein the computer processor is configured to: compute a second value for the recurring loan payment amount, based on the initial loan amount, the new interest rate, and the predetermined term and frequency of payments; and output the second value for the recurring loan payment amount and the new interest rate. ### Claim 6 (depends on 5) The system of claim 5 wherein the computer processor is configured to: validate a plurality of discrete interest rate buy down levels based on the expected profits; and enable through a user interface provided through the user device the selection of one of the validated plurality of interest rate buy down levels. ### Claim 7 (depends on 5) The system of claim 5 wherein the computer processor is configured to receive an approved loan amount from a lender's loan approval server, compare the initial loan amount to the approved loan amount, and output a warning if the initial loan amount exceeds the approved loan amount. ### Claim 8 (depends on 6) The system of claim 6 wherein the computer processor is configured to compare the recurring loan payment amount to the maximum loan payment amount, and output a warning if the recurring loan payment amount exceeds the maximum loan payment amount. ### Claim 9 (depends on 1) The system of claim 1 wherein the computer processor is configured to repeat steps (a) to (d) any time an input is received from a user device which modifies loan data. ### Claim 10 (depends on 7) The system of claim 7 wherein the financing transaction server is configured to communicate an application for a loan to the lender's loan approval server in order to receive the approved loan amount. ### Claim 11 (depends on 1) The system of claim 1 wherein the computer processor is configured to adjust one or more loan parameters for a first financing plan including the sale of one or more aftermarket products, so that a calculated recurring loan payment amount for the first financing plan is within a configurable predetermined range of a calculated recurring loan payment amount for a second financing plan, wherein the second financing plan is for a transaction excluding the sale of aftermarket products. ### Claim 12 (depends on 11) The system for claim 11 wherein the computer processor is configured to adjust the one or more loan parameters by adjusting one or more of: the predetermined interest rate and loan term. ### Claim 13 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. ### Claim 14 (depends on 13) The method of claim 13 comprising adjusting by the computer processor the predetermined interest rate based at least in part on a maximum loan payment amount as specified by a user on a user device. ### Claim 15 (depends on 13) The method of claim 13 comprising accepting, from a user device in communication with the transaction server, an activation of an interest rate buy down and an indication of the minimum profits to be retained, the method further comprising computing by the computer processor a new interest rate, wherein a portion of the expected profits is applied to buy down the interest to the new interest rate, wherein the portion of the expected profits is the expected profits less the minimum profits to be retained. ### Claim 16 (depends on 15) The method of claim 15 comprising: computing a second value for the recurring loan payment amount, based on the initial loan amount, the new interest rate, and the predetermined term and frequency of payments; and outputting the second value for the recurring loan payment amount and the new interest rate. ### Claim 17 (depends on 16) The method of claim 16 comprising: validating a plurality of discrete interest rate buy down levels based on the expected profits; and enabling through a user interface on the user device the selection of one of the validated plurality of interest rate buy down levels. ### Claim 18 (depends on 17) The method of claim 17 comprising receiving an approved loan amount from a lender's loan approval server, comparing the initial loan amount to the approved loan amount, and outputting a warning if the initial loan amount exceeds the approved loan amount. ### Claim 19 (depends on 18) The method of claim 18 comprising comparing the recurring loan payment amount to the maximum loan payment amount, and outputting a warning if the recurring loan payment amount exceeds the maximum loan payment amount. ### Claim 20 (depends on 1) The method of claim 1 comprising adjusting by the computer processor one or more loan parameters for a first financing plan including the sale of one or more aftermarket products, so that a calculated recurring loan payment amount for the first financing plan is within a configurable predetermined range of a calculated recurring loan payment amount for a second financing plan, wherein the second financing plan is for a transaction excluding the sale of aftermarket products.