Reverse Automobile Quote System for Insurance-Inclusive Financing
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Consumers face difficulties in determining the maximum amount they can finance for a vehicle purchase due to the complexity of calculating monthly payments, which often overlooks the cost of insurance, leading to unexpected increases in costs and potential reductions in insurance coverage, increasing risk in case of accidents.
Innovation Solution
A system and method that determines the maximum amount to finance a vehicle based on periodic payments, including insurance costs, by processing borrower data, vehicle information, insurance requirements, and loan terms to generate a total periodic payment amount, displayed in a user interface, allowing users to modify inputs for better financial planning.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If consumers use traditional loan calculators to determine monthly payments, then the calculation process is simple, but the insurance cost is overlooked leading to unexpected total costs
Solution Approach 1:
The patent combines the loan payment calculation function with insurance cost estimation into a single integrated system. The reverse automobile quote system simultaneously calculates both the periodic loan payment and the estimated insurance premium, merging two previously separate calculation processes into one unified tool that provides comprehensive cost information.
Solution Approach 2:
The system performs preliminary insurance cost estimation before the consumer finalizes their vehicle purchase decision. By calculating the insurance premium in advance based on the financed amount and vehicle characteristics, the system allows consumers to know the total periodic cost (loan payment plus insurance) before committing to a purchase, preventing unexpected cost increases.
2Ease of operation
If consumers reduce insurance coverage to lower monthly costs, then the monthly budget is met, but the risk coverage is insufficient
Solution Approach 1:
The system provides feedback to consumers about the relationship between insurance coverage levels and total periodic costs. By displaying both the loan payment and insurance premium together, the system enables consumers to adjust their expectations and make informed decisions about coverage levels that align with their budget while understanding the impact on their risk protection.
3Measurement precision
If consumers try multiple trial and error attempts to determine maximum financing, then the target monthly payment can be found, but the process is time consuming
Solution Approach 1:
The patent implements a reverse calculation approach where consumers input their desired maximum periodic payment amount, and the system calculates the maximum vehicle purchase price that can be financed within that budget. This inverts the traditional top-down approach (select vehicle first, then calculate payment) into a bottom-up approach (set payment budget first, then determine affordable vehicle price), eliminating the need for multiple trial and error attempts.
Data Source
AI summary
A system, method, and computer-usable medium are disclosed for determining a maximum amount to finance based on a plurality of periodic payments. The maximum financed amount of the purchase price of a vehicle is determined based on a plurality of periodic payments, including the cost of vehicle insurance coverage. Data associated with a borrower is retrieved, followed by the borrower providing information related to a target vehicle and a maximum periodic payment amount for the cost of financing the target vehicle and insuring it. Vehicle insurance requirement data, vehicle insurance policy data, and vehicle loan terms data is then provided and processed with the vehicle data and the borrower data to generate a periodic cost for a vehicle insurance policy. Thereafter, the vehicle data, vehicle loan terms data, and borrower data are processed to generate a periodic cost for a loan on the vehicle. In turn, the periodic cost for the vehicle insurance policy, the periodic cost for a loan on the vehicle, and the total periodic payment amount provided by the borrower are processed to generate a maximum amount of the purchase price of the vehicle to finance.