Abstract:
A system and method to facilitate a transaction in a network-based commerce facility is provided. The method includes presenting a plurality of listings to a user, and monitoring selection of one of the plurality of listings by the user. Thereafter, the user is provided with an indication of an equivalent periodic payment of a plurality of periodic payments associated with an offer to purchase. In one embodiment, the user is provided with an option to conclude the transaction for the selected listing based on a plurality of periodic payments. In certain embodiments, the network-based commerce facility is a web-based auction facility where the offers are in the form of bids. Accordingly, in this embodiment, the periodic payment may be a monthly payment and the products are movable goods such as motor vehicle, motorcycles, watercraft, or the like.

Description:
CROSS-REFERENCE TO RELATED APPLICATION  
       [0001]    The present application claims the benefit of the filing date of U.S. provisional application serial No. 60/438,607, entitled “SYSTEM AND METHOD FOR SUBMITTING AN OFFER TO PURCHASE OVER A NETWORK-BASED COMMERCE FACILITY”, filed Jan. 7, 2003. 
     
    
     
       FIELD OF THE INVENTION  
         [0002]    The present invention relates generally to purchasing products over a network-based commerce facility. More particularly, the invention relates to a system and method for submitting offers to purchase products offered via the Internet.  
         BACKGROUND  
         [0003]    There is no question that the explosive growth of the Internet in recent years has changed classic business and economic models. One area in which this change has been noteworthy is in the auctioning of both new and used products (goods and/or services) via the Internet. Conventionally, participants provide incremental bids to purchase the product and, upon a bid being successful, the purchaser then pays the amount he or she bid to claim title to the product. Although the products offered for sale are usually goods, it is to be appreciated that the bidding procedure may apply equally to services.  
           [0004]    When, for example, the product auctioned is a motor vehicle, the bidder may either pay cash for the vehicle or arrange independent finance for the vehicle. During the bidding process the bidder bids on a total purchase price and thus may be unaware of the monthly payment obligations if the purchase is to be financed.  
         SUMMARY OF THE INVENTION  
         [0005]    According to one aspect of the present invention, there is provided a method to facilitate a transaction in a network-based commerce facility, the method including:  
           [0006]    presenting a plurality of listings to a user;  
           [0007]    monitoring selection of one of the plurality of listings by the user; and  
           [0008]    providing the user with an indication of an equivalent periodic payment of a plurality of periodic payments associated with an offer to purchase.  
           [0009]    The method may include providing the user with an option to conclude the transaction for the selected listing based on the plurality of periodic payments. In one embodiment, the network-based commerce facility is a web-based auction facility, and the method includes receiving the offer in the form of a bid from the user based on a periodic payment. The periodic payment may be a monthly payment and the products may be movable goods.  
           [0010]    The invention extends to a machine-readable medium embodying a set of instructions to facilitate a transaction in a network-based commerce facility and to system to facilitate a transaction in a network-based commerce facility.  
       
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0011]    The present invention is illustrated by way of example, and not limitation, in the figures of the accompanying drawings in which like reference numerals refer to similar elements and in which:  
         [0012]    [0012]FIG. 1 shows a schematic block diagram of an exemplary network-based commerce facility in the form of a web-based auction facility according to one embodiment of the present invention;  
         [0013]    [0013]FIG. 2 shows a schematic diagram illustrating an exemplary database, maintained by, and accessed via a database engine server, that at least partially implements and supports a bid based on a monthly payment according to one embodiment of the present invention;  
         [0014]    [0014]FIG. 3 shows a schematic flow diagram of an exemplary method, in accordance with the invention, for bidding on products auctioned via the Internet, e.g., via the web-based auction facility of FIG. 1;  
         [0015]    [0015]FIG. 4 shows a schematic screen shot of an exemplary credit application form generated by the method;  
         [0016]    [0016]FIG. 5 shows a schematic screen shot of an exemplary payment calculator generated in the method;  
         [0017]    [0017]FIG. 6 shows a schematic screen shot of an exemplary web page rendered by the method showing a product listing, a starting bid and its equivalent monthly payment;  
         [0018]    [0018]FIG. 7 shows a schematic screen shot of and exemplary web form for a user to enter a monthly bid and a maximum monthly bid; and  
         [0019]    [0019]FIG. 8 shows a schematic high-level block diagram of an exemplary computer system.  
     
    
     DETAILED DESCRIPTION  
       [0020]    Described herein is a system and method, in accordance with an aspect of the present invention, to provide bidding on products up for auction based on a monthly payment. Throughout the following description specific details are set forth in order to provide a more thorough understanding of the invention. However, the invention may be practiced without these particulars. In certain instances, well known elements have not been shown or described in detail to avoid unnecessarily obscuring the present invention. Accordingly, the specification and drawings are to be regarded in an illustrative rather than a restrictive sense.  
         [0021]    Referring to FIG. 1, there is shown a schematic block diagram of an exemplary network-based commerce facility in the form of a web-based auction facility according to one embodiment of the present invention. While exemplary embodiments of the present invention are described within the context of an auction facility, it will be appreciated by those skilled in the art that the invention will find application in many different types of computer-based, and network-based, commerce facilities.  
         [0022]    The auction facility has a system  10  including one or more of a number of types of front-end servers, namely page servers  12  that deliver web pages (e.g., markup language documents), picture servers  14  that dynamically deliver images to be displayed within Web pages, listing servers  16 , ISAPI/CGI servers  18  that provide an intelligent interface to a back-end of the system  10 , and search servers  20  that handle search requests to the system  10 . A communication server including one or more e-mail servers  21  provides, inter alia, automated e-mail communications to users of the system  10 .  
         [0023]    The back-end includes a database engine server  22 , a search index server  24  and a credit card database server  26 , each of which maintains and facilitates access to a respective database. The back-end is also shown to include a number of administrative applications or functions  28  and a loan approval application  29 , which is described in further detail below.  
         [0024]    The web-based auction system  10  may be accessed by a client program  30 , such as a browser (e.g., the Internet Explorer distributed by Microsoft Corp. of Redmond, Wash.) that executes on a client machine  32  and accesses the system  10  via a network such as, for example, the Internet  34 . The auction system  10  may, for example, post listings of automobiles up for auction. However, unlike conventional network-based auctioned facilities in which a bidder bids a total purchase price of a product, the system  10  allows a user to bid on a monthly payment basis e.g. a monthly installment payment or a monthly lease payment. Further, in an automated fashion, the system  10  may in certain embodiments obtain approval for financing of the purchase.  
         [0025]    Prior to describing the methodology of offering products for sale based on a monthly payment, an exemplary database  23  of the system  10  is described with reference to FIG. 2. The database  23  is maintained by, and accessed via, the database engine server  22 , which at least partially implements and supports the auction system  10 . The database  23  is a relational database, and includes a number of tables having entries, or records, that are linked by indices and keys. Central to the database  23  is a user table  40 , which contains a record for each user of the auction system  10 . A user may operate as a seller, buyer, or both, within the auction system  10 . The database  23  also includes item tables  42  that may be linked to the user table  40 . Specifically, the items tables  42  include a seller items table  44  and a bidder items table  46 . A user record in the user table  40  may be linked to multiple items that are being, or have been, auctioned via the system  10 . A number of other exemplary tables are also shown to be linked to the user table  40 , namely a note table  48 , a user past aliases table  50 , a feedback table  52 , a bids table  54 , an accounts table  56 , and an account balances table  58 .  
         [0026]    Referring in particular to FIG. 3 of the drawings, reference numeral  100  generally indicates an exemplary method for a user or customer to bid on a product (e.g., goods and/or services) in a network-based auction facility such as the system  10 . As mentioned above, unlike the methodology in conventional web-based auction facilities, the method  100  allows a bidder or user to bid in terms of a periodic payment, e.g., a monthly payment, instead of, or in addition to, a total purchase price payment used in conventional auctioning environments. In one exemplary embodiment, the products up for auction are motor vehicles and, accordingly, the monthly bid may include insurance costs, financing fees, an extended warranty service plan cost, or the like. Accordingly, in certain embodiments, the monthly payment bid by the user is the total monthly payment and in these embodiments, no hidden costs or additional costs (e.g. insurance costs) are due by the user.  
         [0027]    In one embodiment, the listing servers  16  (see FIG. 1) include a front-end monthly payment engine that provides customized estimates of monthly payments (e.g., loan and/or lease) payments. When a user searches the system  10  from the client machine  32  for a particular product, e.g. a specific motor vehicle and selects a particular item (e.g. Ford Mustang GT convertible), a dynamic page  102  (see FIG. 6) is rendered to the client machine  32 . A photograph of the item is also shown to the user. In one embodiment, the page  102  includes an option to bid on a total purchase price  104  based on an estimated monthly payment  106  presented to the user. In certain embodiments, the estimated monthly payment  106  defines a teaser, which the user may click on in block  108  of FIG. 3. If the user does not click on the teaser, then the method  100  is configured to provide regular browsing that may retain the monthly payment teaser in subsequent web pages for subsequent selection as shown in block  110 .  
         [0028]    If, for example, the user initially selects the monthly payment teaser in block  108 , or subsequently selects the teaser during regular browsing in block  110 , then a web page is rendered to the client machine  32  so that the user may select a “pre-approval option” or a “self-report option” as shown in block  112 . As described in more detail below, in certain embodiments, the pre-approval option obtains, in an automated fashion, pre-approved financing for the user to purchase the particular product, such as the motor vehicle, based on the monthly payment bid by the user. However, the user may also choose to obtain financing independently of the network-based auction facility and, accordingly, the system  10  allows the user to enter terms of such financing, as described in more detail below.  
         [0029]    Returning to block  112 , when the user selects the pre-approval option, an application procedure, as represented in block  114 , is then carried out. In particular, the system  10  renders an application form  116  (see FIG. 4) to the user via the client program  30  on the client machine  32 . In the application form  116 , basic user particulars such as name  118 , address  120 , social security number  122 , salary  124 , employer  126 , and email address  128  are requested from the user in order to process the loan application. It is to be appreciated that further or different particulars may be requested from the user in different embodiments.  
         [0030]    In the embodiment depicted in the drawings, the system  10  interacts with an external banking facility to obtain financing for the purchase of the particular product. However, it is to be appreciated that financing may also be provided by the network-based auction facility or any other entity. In one embodiment the pre-approval option is in the form of a link to a financing partner. Communication of the user&#39;s personal particulars between the client machine  32  and the system  10  may be performed in a secure fashion.  
         [0031]    Once the user has entered the requested particulars on the application form  116 , the user activates an “APPLY” button  130  (see FIG. 4) whereupon the entered particulars are communicated from the client program  30  via the Internet  34  to the auction system  10 , which processes the application either internally or by communicating with an external entity. In response to the communication, the system  10  either approves or declines the user&#39;s application. If, as shown in block  132 , the user&#39;s application is declined, the method  100  allows the user to continue bidding by a total purchase price and, in certain embodiments, any representations on the web page offering financing to the user by means of a monthly payment are removed.  
         [0032]    In the event of the loan application of the purchaser or user being pre-approved, in block  134  the method  100  renders a web page to the client machine  32  that shows a maximum monthly payment for which the user has been pre-approved based on his personal particulars. It is to be appreciated that, the web form  116  is merely an example of a loan application graphical user interface (GUI) and that further particulars required for approval of the user may be included in the form  116 , as mentioned above. The purchaser or user is also advised of the pre-approved rate of financing. In certain embodiments, the user may also apply for financing through the system  10  after purchasing a product e.g. after a successful bid on a motor vehicle. In certain circumstances, when automated financing for the particular user has been rejected, a finance and insurance center specialist may manually research options to try to obtain financing for the user. Typically, purchasers or users that require manual review are notified that a manual review is being performed and they may be provided with an estimated time by which approval, or denial thereof, will be communicated to them. In the event of the financing being approved, the finance and insurance center typically communicates the required application documentation to the user via email.  
         [0033]    Returning to block  134 , in certain embodiments when the user has been informed of the approval of his or her application, and then bids on an item (e.g., the Mustang convertible in the present example), a monthly payment bid web page  136  (see FIG. 7) is rendered to the client machine  32  as shown in block  138  of FIG. 3. The monthly bid web page  136  identifies the product that the user is bidding on (see arrow  140  in FIG. 7) and provides the user with an option to enter a bid in block  142  as well as provide a maximum bid amount in block  144 . In certain embodiments of the invention, the auction facility acts as a proxy bidder in which the network-based auction facility bids on behalf of the user up to the value of the maximum bid entered by the user in block  144 . Accordingly, in certain embodiments, the user may enter a maximum bid or a maximum monthly payment bid, whereafter the system  10  bids in an automated fashion on behalf of the user. The monthly payment bid web page  136  provides a preview button  146  that allows the user to preview his or her bid. When a bid is initially placed, the user is presented a screen providing information including, for example, a maximum bid, a user ID, and item details. If all of the information is correct the user may then confirm his or her bid, and it will be placed into the system  10 . The bid will also be presented as a monthly payment based on actual pre-approval terms, and the actual bid being placed on the item.  
         [0034]    Although the method  100  carried out by the network-based auction facility allows the user to bid by a monthly payment (see block  138  in FIG. 3), the user may nevertheless still bid by a total purchase price should he or she so choose, as shown in block  148 .  
         [0035]    In one embodiment, the monthly bid may include finance costs, insurance costs, costs arising from the arranging of the finance, the sale of auto related insurance products such as extended service contracts (warranties or mechanical breakdown insurance), or the like. Accordingly, in some embodiments, the user may bid a total monthly cost for the particular product, which reflects his or her total monthly monetary outlay for a selected duration (e.g., 48 months). However, it is to be appreciated, that the monthly bid need not include any one or more of the aforementioned costs and, for example, may relate purely to a monthly payment on a loan for the purchase of the vehicle. Further, it is to be appreciated that in certain embodiments, the particular terms and conditions of the loan for purchase of the product (or products) are customized to the particular user or customer. Thus, in certain embodiments, one user may see a listing of a product with a corresponding monthly payment in the amount of $200, whereas another user bidding on the same item may see the same listing with a monthly payment of $150 because of, for example, a better credit rating. Thus, a common purchase price may be used to determine an equivalent monthly payment for a particular user based on the nature of financing terms.  
         [0036]    Returning to block  112  in FIG. 3, instead of selecting the pre-approval option, the user may select to self-report his or her credit particulars as shown in block  150 . Should the user subsequently decide not to self-report the credit particulars in block  150 , the method  100  then configures the user experience to perform in a regular fashion at block  152  in which the user does not bid by a monthly payment but instead by a total purchase price as shown in block  154 . In one embodiment, the monthly payment teaser (see block  108  and estimated monthly payment  106  in FIG. 7) is not included in the web page rendered to the user.  
         [0037]    If, however, the user has selected the self-report option in block  150 , the user may in block  155  be rendered a web page similar to the web page  136  to enable the user to enter a monthly bid in block  142 . The monthly bid may either be an estimated monthly bid, e.g. using a calculator tool  156 , or a customized monthly bid derived from details such as a user entered interest rate, period of financing, or the like.  
         [0038]    An exemplary payment calculator  160  generated by the calculator tool  156  is shown in FIG. 5. The payment calculator  160  is rendered as a web page to the client machine  32  for display by the client program  30 . The payment calculator  160  includes a sale price field  162  for entry of the total sale price of the product which, in the present example, is a vehicle. The sale price field  162  may be automatically populated with the sale price of the vehicle selected by the user (FIG. 6). However, it is to be appreciated, that the user may also populate the sale price field  162 . A term of loan field  164  and a down payment field  166  are also provided in the payment calculator  160  for entry of the loan term and a down payment amount. In one embodiment, the user enters the loan term and the down payment amount when the self-report functionality of the method  100  has been chosen by the user. Likewise, the user may select check box  168  and enter a credit rate in field  170  which the user deems appropriate for his or her particular circumstances. However, in certain embodiments, the user may check box  172  and, by using a drop down menu  174 , select a credit rating which the user deems to apply to him or her thereby to obtain an estimate of an interest rate which he or she is likely to receive. In certain embodiments, the interest rate would then be automatically entered into the field  170 . In the embodiment depicted in the drawings, the user may then activate a “Calculate” button  176  which then calculates and displays a monthly payment amount  178  which is based on the information entered by the user into the payment calculator  160 .  
         [0039]    Thus, the payment calculator  160  may be used to aid a user in estimating a monthly payment bid as shown in block  155 . Once the user has estimated the monthly payment bid using the calculator tool  156 , he or she may either apply for pre-approval in block  180 , or bid a total purchase price as shown at block  182 . Prior to bidding by a total purchase price in block  182  the method  100  also provides a payment estimate so that the total payment price is converted to a monthly payment price so that a user is aware of his or her monthly financial commitment as shown in block  184 . In certain embodiments, in block  182  a link to apply for financing is provided to the user when bidding.  
         [0040]    Returning to block  180 , which corresponds substantially with the application process described in block  114  above, the user&#39;s application may either be approved or declined. If the user&#39;s application is declined the method  100  provides an option in block  182 , which corresponds with block  132  above, to bid by a total purchase price. If, however, the user&#39;s application is approved, then the functionality carried out in blocks  184 ,  186  and  188  is performed. The blocks  184 ,  186 , and  188  correspond with blocks  134 ,  138  and  148  as described above.  
         [0041]    A calculation tool  190  associated with the monthly payment in block  134  and a calculation tool  192  associated with monthly payment in block  184 , substantially resemble the calculation tool  156  and, in certain embodiments, may render a web page including a substantially similar web payment calculator  160  (see FIG. 5).  
         [0042]    It will be appreciated that the methodology described above may be implemented in various different ways. For example, a secure credit application e.g. including the presentation of an application, its completion, submission and response back to the user may be accomplished with the use of cookies. In one embodiment, the system  10  integrates on the backend with a loan approval application  29  shown in FIG. 1 (e.g. an auto finance application). The loan approval application  29  may route an application and/or an electronic loan document to third party or entity.  
         [0043]    In certain embodiments, the monthly payment engine may be included in the listing service  16 . Thus, when browsing multiple items a monthly payment amount is presented next to the price of each of the items. The monthly payment amount is based on default terms, user specified terms, or personal pre-approval terms. Further, the monthly payment engine may, in certain embodiments, present default settings to the user such as a term of financing, a down payment amount, as well as a default interest rate based on current market factors. The user may however change the default settings should he or she so chose. In certain embodiments, the monthly payment functionality in blocks  134 ,  155 , and  184  of FIG. 3 operate off backend inputs of rates and lending criteria from lending partners associated with the system  10 . The rates and lending criteria may depend upon, or correspond to, a specific rating e.g. a credit score of the user, a length of credit history of the user, finance settings of a term, a down payment, an amount to be financed, or the like.  
         [0044]    It is to be appreciated that the monthly bid made by the user may be a monthly lease payment. Further, the monthly payment bids may be made on any goods or services and is not restricted to the sale or lease of motor vehicles. For example, the monthly payment bid may be in respect of the lease of computer equipment, dwellings, boats or any other items. The products or items for sale or auction may be new and/or used items.  
         [0045]    In certain embodiments, sellers of goods via the system  10  may provide a user or customer with financing. In these circumstances, the pre-approval application may be sent to the seller for approval. However, for example, in for sale by owner (FSBO) circumstances where a seller is unlikely to offer financing to the purchaser or user, the loan approval application  29  may interact with a third party lender.  
         [0046]    [0046]FIG. 8 shows a diagrammatic representation of machine in the exemplary form of a computer system  500  within which a set of instructions, for causing the machine to perform any one of the methodologies discussed above, may be executed. In alternative embodiments, the machine may comprise a network router, a network switch, a network bridge, Personal Digital Assistant (PDA), a cellular telephone, a web appliance or any machine capable of executing a sequence of instructions that specify actions to be taken by that machine.  
         [0047]    The computer system  500  includes a processor  502 , a main memory  504  and a static memory  506 , which communicate with each other via a bus  508 . The computer system  500  may further include a video display unit  510  (e.g., a liquid crystal display (LCD) or cathode ray tube (CRT). The computer system  500  also includes an alphanumeric input device  512  (e.g. a keyword), a cursor control device  514  (e.g. a mouse) a disk drive unit  516 , a signal generation device  518  (e.g. a speaker) and a network interface device  520 .  
         [0048]    The disk drive unit  516  includes a machine-readable medium  522  on which is stored a set of instructions (i.e., software)  524  embodying any one, or all, of the methodologies described above. The software  524  is also shown to reside, completely or at least partially, within the maim memory  504  and/or within the processor  502 . The software  524  may further be transmitted or received via the network interface device  520 . For the purposes of this specification, the term “machine-readable medium” shall be taken to include any medium which is capable of storing or encoding a sequence of instructions for execution by the machine and that cause the machine to perform any one of the methodologies of the present invention. The term “machine-readable medium” shall accordingly be taken to included, but not be limited to; solid-state memories, optical and magnetic disks, and carriers wave signals.  
         [0049]    Thus, a method and a system for submitting offers to purchase products offered via a network-based commerce facility have been described with reference to specific exemplary embodiments. It will be evident that various modifications and changes may be made to these embodiments without departing from the broader spirit and scope of the invention. Accordingly, the specification and drawings are to be regarded in an illustrative rather than a restrictive sense.