Automated Vehicle Financing Optimization System
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
In the automotive inventory space, dealing with non-prime customers is complex and often driven by intuition, leading to suboptimal deals and increased risk for lenders, as determining suitable financing terms for vehicles is time-consuming and requires specialized knowledge, which many dealerships lack.
Innovation Solution
A computer-implemented system that computes data structures representing wholesale pricing terms, approximate deal structures, and customer tiers to optimize vehicle financing options, normalizing information from multiple sources and generating reduced data sets based on customer selection, credit score, and equity level, associated with lender likelihoods.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If dealerships manually determine financing terms for non-prime customers, then deal accuracy improves, but time consumption increases and productivity decreases
Solution Approach 1:
The system enables self-service by allowing customers to input their own financial information and receive automated financing estimates without requiring sales manager intervention. The automated system processes credit checks, calculates financing terms, and presents deal options independently, freeing sales staff from routine calculations while maintaining accurate deal determination through structured algorithms that consider customer credit standing, vehicle value, and lender requirements.
Solution Approach 2:
The patent replaces the manual mechanical process of sales managers performing calculations and credit assessments with an automated electronic system. The system uses computer processors to execute algorithms that automatically evaluate customer credit standing, determine financing eligibility, and calculate monthly payment amounts, substituting human expertise with programmed logic that operates continuously without fatigue or error.
2Speed
If dealerships use intuition for non-prime customer deals, then process speed increases, but risk increases and reliability decreases
Solution Approach 1:
The system incorporates feedback mechanisms that continuously monitor deal parameters and adjust financing recommendations based on real-time data. The automated system receives feedback from credit bureaus, lender databases, and customer financial information, then dynamically adjusts financing terms to ensure reliability. This closed-loop feedback ensures that deals meet lender requirements and customer needs while maintaining consistent, reliable outcomes.
Solution Approach 2:
The system performs preliminary actions by pre-establishing lender requirements, credit standing thresholds, and financing parameters before customer interactions occur. The system pre-processes lender guidelines and pre-qualifies potential deals based on stored customer financial data, so that when a customer enters the system, the framework for reliable deal determination is already in place, eliminating the need for intuitive judgment.
3Measurement precision
If only one or two sales managers handle financing calculations, then expertise concentration improves, but device complexity increases and scalability worsens
Solution Approach 1:
The system achieves universality by designing a single automated platform that performs multiple functions previously requiring separate sales managers. The system simultaneously conducts credit checks, calculates financing terms, assesses risk parameters, determines lender eligibility, and presents deal options. This multi-functional automated system replaces the need for multiple specialized sales managers while distributing the workload across system components rather than concentrating complexity in individual persons.
4Loss of time
If sales managers stop at first match, then time consumption decreases, but adaptability decreases and product quality worsens
Solution Approach 1:
The system maintains continuity of useful action by automatically iterating through multiple financing options and vehicle matches without interruption. The automated system continuously evaluates alternative deals, compares them against customer criteria and lender requirements, and refines recommendations until optimal matches are identified. This continuous automated processing eliminates the need for sales managers to manually stop at first matches, ensuring thorough optimization while maintaining fast processing speeds.
Data Source
AI summary
Systems and methods for search space optimization are provided. The method may include: computing a plurality of first data structures, each representative of wholesale pricing terms for each vehicle in a plurality of vehicles based on information from a plurality of sources; computing a plurality of second data structures, each representative of an approximate deal structure for each vehicle in the plurality of vehicles; computing a plurality of customer tiers, with each customer tier associated with a lender and a likelihood of approval by the lender; generating a reduced set of data structures from the plurality of second data structures based at least on the second data structures and the plurality of customer tiers; generating a plurality of third data structures further reduced from the reduced set of data structures; and computing financing terms for one or more vehicles from the reduced vehicle list based on customer selection.