Molecularity of the origination-portfolios (inside the PAL Owners Trust & Escrow Company) permits anyone and everyone to benefit evenly from self-funding operations in compliance with all laws.  The equation for automatic payment for the operator (lessee) is really very simple.  A fraction of the financed-amount (aka capitalized-cost) is placed in a value-building origination-portfolio that consistently earns the amount of the periodic-payment before it is due through monetary-multiplication, which is value-building explained next section. 

(periodic-payment x periods in the round) ÷ build-rate = fractional-deposit
(350 x 2) ÷ 0.4473 = 1566

If each round takes two months to create and securitize; if the monthly payment is $350; and if the multiplication-rate is 144.73%; the build-rate (added-value-rate) is 44.73%:

(350 x 2) ÷ 0.4473 = 1566

Therefore, adding $1,566 to the amount-financed at the start of the operating-lease, then moving that amount to an origination-portfolio, pays the $350 payment on time for the duration of the contract.  The fractional-deposit remains in origination portfolio until the end, or early termination.  Then it is applied according based on the operator's decisions at the time. Voila!

You have your car and your money, too. Now what good are you going to do?

• The periodic-payment & fractional-deposit may also include the cost of the whole operation: manpower, fuel, maintenance, management, insurance, licensing, garage, etcetera for total cost-free driving/operating without debt. 

• Any number of assets can be obtained by an individual, a household, or business for a planned-operation.  In example, an individual household may want/need (and will regularly use) a sports car, family car, pickup truck, boat, motorcycle, and a dirt bike.

• A business or government agency operation may include an assembly-line, a commercial kitchen, farm equipment, aircraft, medical devices, rental fleet, police cars, operator-training and/or mobile-office vehicles  – you name it.

• If the operation is, "We need a bigger family vehicle with seven seatbelts because our family is growing from five to six people." An additional fractional-deposit may be made into the PAL origination-portfolio to pay for the child's education and welfare: In example: $1 fractional-deposit at birth generates $5,990,404 by age seven (84 months) if no debits are drawn.  At that point the child's account is moved to an ownership-portfolio which pays $19,968 per month, which is 4% APR, for example.

Close Self-Funding Formula Insert

Monetary multiplier basic formula: 

capital equipment cost x (1 + value-added-rate) ^{^ number of securitizations in year} = originators' annual gross income; minus capital equipment cost = originators' annual earning before taxation...

Example: 

$5,000,000 x (1 + 0.4473) ^{^} 6 = $45,953,794; - $5,000,000 = $40,953,794; gain = 819%

 

Monetary value can be added financially, logistically, externally, by improving the condition, with functionality, and/or by property-improvements (up-fits & conversions), as long as the values are real and sustained.  

Adding value today is not only prosperous, it is a lot of fun. And, building value today has never been easier than at any other point in history.  The molecular structure of the PAL contracts allows for additions, subtractions, extensions, transfers and changes to terms and conditions throughout the period of use.  This insures the multiplication efficiency and  meets the ever-changing needs of the operators.

Financial Additions:

Attaching the orthodox operating-lease contract to a vehicle creates the structure for building (and subtracting) other values throughout the lease period. Plus it adds the first value:

the total of payments during the contract term
 minus
 anticipated-contract-expenses
(depreciation, periodic service fees, the lease-owner's-fee... may include fixed monthly amounts like tax, insurance, housing, etc collected inside the payment)
equals
added-value

So, for a common Christian lease, if the initial cost is $30,000; the monthly depreciation = $175; the service fee is $25 month; the lease-owner's fee is $75; and the monthly payment is $350 on a contract-term of five years:

350 x 60 = 21,000
minus
(175 + 25 + 75) x 60 = 16,500
equals
4,500 added value

Therefore, a $30,000 vehicle-lease pays back $34,500 (within ≈ 2-months) to the trust-fund that was specially set up to procure the leased vehicles. That is an increase equal to 15% of the initial capitalized-cost.  NOTE:

When the portfolio containing this example lease is securitized $34,500 is available to originate more vehicles and equipment for another round of securitization in approximately another two-months. On and on:

30,000 x 1.15 = 34,500 x 1.15 = 39,675 x 1.15 = 45,626 x 1.15 = 52,470 x 1.15 = 60,341 x 1.15 = 69,392 x 1.15 = 79,801 x 1.15 = 91,771 x 1.15 = 105,536
$503,575

 34,500 x 1.15 =

 As each origination-portfolio is securitized bimonthly,

In addition to intrinsic values like fluidity, sustainability and freedom, the 15% addition will apply to every other  added-value to the vehicle throughout its lease.

•  longer contract terms automatically generate substantially higher amounts up front at the beginning of the operation when money is most useful.  In example

  • a contract term of 78 months (6.5 yrs) generates $9,000, a build rate of 30%

  • a contract term of 96 months (8 yrs) makes $13,500 in the beginning, upon securitization with the same payment and structure.

• Since PAL Christian leases allow multiple lease-transfers at any the point without changing the title or contract obligations (other than adjustments for the next-driver's mileage for example) no operator or driver will ever be stuck in a vehicle they no long want or need.

• Considering all things, especially an array of operator types from cash-rich to money-poor individuals and organizations, we pre-composed seven basic origination-portfolio types and made bridges between them:  Fleet, Prime+, Prime, Common, Preferred, Reimaged & Anticipated.  Discussed briefly here, the best understanding of their use will come from testing your operation variables in our self-serve sandbox under the direction of a licensed principles-engineer.  

Logistic Value-Addition:

Moving a vehicle to a location where the need for it is higher can add value to the capital cost before the lease is started without gouging because the lease-end-value will also be higher so the payment will be relatively the same. Higher initial cost (capital-cost) raises origination amount proportionally while fixed-costs (both initial and monthly) remain the same.

External Value Addition:

Extemplar University has discovered (and improved) a patent for a machine that does not use salt or petroleum products (total electric) to remove snow and ice from roads and bridges during winter weather. Melted snow & ice is sucked up and removed to a compliant storm water system. In addition to the intrinsic value of the machines on their own self-funding contract, value is added to every vehicle in the area because

•  no more rust or surface damage from salt abrasion will occur adding $ trillions to the nation's vehicles.

• no more infrastructure deterioration, which reeks havoc on suspension, tires and wheels, etc.  Highway taxes can be reduced or repurposed.. The cost of maintaining and repairing roads and bridges is

Reconditioning & Restorations:

For compliance with United Nations SDG #12 (RESPONSIBLE CONSUMPTION & PRODUCTION : Eliminate waste, hording, make gainful use of over-production resources) the PAL Real-time Residual Calculator© autonomously creates an accurate lease-end-value for any motor-vehicle of any age, any condition, and any composition. This establishes the foundation for one or more restoration operations enabled by Christian finance.  New commerce of considerable proportion can be generated quickly from wasted or unused motor-vehicles in the restoration and specialty manufacturing industries.

PAL Numerology©, especially molecularity of  the the trust company and modular, level-yield, master-lease contracts (both outlined below), provides a successive-structure for exponential multiplication of money while providing enormous profit to the originator/operator; with or without the self-funding mechanism attached at each stage.  Here is an example of turning trash into treasure with Christian finance:

After value-research & parts-availability studies, the initial lease is authorized for the capital-cost of the dilapidated vehicle, labor and raw materials for the restoration. The lease-end-value is contracted at  65% of the capital cost. The initial length of the lease is set to the longest (120-months) to maximize the multiplication of money and minimize the monthly payment. The self-funding mechanism may be applied. 

When the restoration is complete,

 

the operator (aka lessee) has two options: They can keep the restored vehicle and drive it, or the lease is rewritten

 

There will be two leases, The cap-cost equals the restored market price including the cost of the restoration. Self funding is applied.  optional... U/C!

$78,000 (Restored Market Value) - $800 (Salvage Purchase price) - $23,500 (restoration) = $53,700 (profit) = 220.99%
(multiplication-rate) = 120.99% (build-rate)
+

The lessee is the operator, originator, and lessor. Christian self-funding is applied. When complete, a decision is made to drive for free or transfer ownership on lease to another person and receive the planned-markup, lessors fee, and the amount of the new origination. Rules about Christian value sharing apply, but allow tremendous income per vehicle with no limitation on volume.

Specialty Equipment:

In 1980 when the CT Scanners were new on the market, installation in hospitals was not only cost prohibitive, but also physically impossible in a wide area.  Hartsocks designed and built 22 mobile units fully equipped/staffed in semi tractor-trailers with the self-funding mechanism for Indiana Mobile Scans, Inc. The cost per patient was reduced. The first year of 8 hour days (7 per week produced over 7,000 scans; compared to an average of less than 500 and a much higher cost in states who transported patients to a hospital with the machine installed.

A similar application is designed today for the plasma donation industry with vast improvements to the vehicle including EVC that runs without charging, batteries or petrol.

 added-value Functionality:

When a stylish self-funded vehicle is fully equipped with mobile-living and/or mobile work-space equipment, it then serves two or three functions for the operator and the community.

The value of the Christian operating-lease is amplified by saving the cost of fixed housing (or the cost of being homeless and dysfunctional)

and the amount of new income earned inside the unit (or the savings of being close to your work place in a fixed building). 

Not shown: portable solar shower, screens, toilet, central vacuum, window umbrellas, cooking cabinet, storage, roof top, tents, solar charging panels, fans, autonomous generator, 24v-48v charging system batteries, tint/shades, heated/cooled seats, natural mold/insecticide, rechargeable lighting, appliances, hand-tools, carpets, planet fitness account, Lowes account, Wal-Mart card,

In addition, a vehicle can provide an exceptional income driving for livery, delivery, policing, field-testing, education, tourism...

Extemplar University provides high-paying externships and extremely valuable franchises to self-funded operators, tuition-free.  Enrolled students are guaranteed full wages between $48,000 and $410,000 per year, minus withholding taxes, as they go through and learn forty-some relative positions.  Ecops, Uni-Pol, and other positions dealing with heritage and reclamations will be paid much, much more.  Not one job, or any task in it, causes in-person contact, nor requires the scholar to leave their mobile workstation.  Remote education for remote business operations coupled with financial freedom and time for growth is the only way to position people of all ages to solve world problems like the PEXO's and SDG's listed below in the PLANNED OPERATIONS section. Solving world problems pays $ billions.

 Mobile-living vehicles will usually have a much longer lifespan due to the proximity of life/work/play/education activities. Therefore they retain their value longer. Higher retained value equals longer contracts and lower payments for each of the stream of driver/operators during the term, and much higher multiplication/build rates.

Close Multiplication of Money Insert

PAL's  "praetorian style" lock box immediately pays the originators +/or lease owners at the threshold of any default, delayed payment, residual value error or catastrophic loss... any monetary loss whatsoever.  Along with the customary chattel lease paper and insurances, we maintain cash in the Trust's escrow equal to or greater than three (3) monthly payments for the entire active portfolio; plus an amount equal to three (3%) to ten percent (10%) of the total of residual values; and we maintain an amount of our enterprise stock equal to the principal balance of the entire portfolio in escrow.  Losses are absorbed and either made into new profit or litigated by the PAL Platform© lessor who created the lease.  The oversight funds are then replenished.

Since PAL lessors also participate in fixed monthly rate income, an arena is created where solving each problem is an opportunity for additional leasing profit while sustaining the original lease. This is accomplished through a legal lease transfer in most cases, or adjusting the terms of the master-lease in others.  While PAL does not guarantee payment of the remaining lease-fees on an early termination, we do offer first right of refusal to the lease owner on both the new lease vehicle for the original driver and a subsequent lease for a new driver on the original vehicle.  Thus, the liability of losses, and importantly the risks of prepayment, are mitigated at an exponential profit along with great customer and franchisee satisfaction.

PAL originators and lease owners are also insulated from bankruptcies, legal aggression, severable pension and vicarious liability claims, consumer fraud, employee theft, and/or unfair competition by PAL's cyber-crime software and services, ten intrinsic tech-protectors & seven extrinsic elements, and by the inherent direct leasing dynamics, like extra-high granular solvency.

Prior to 1980, very few lease transactions were conducted at auto dealerships.  Today, leasing in the showroom has become the norm and the only.  PAL enables any volume of expert, remote, non typical employment by distributing its Virtual Fleet & Lease Office©  franchises with a college education, full pay, and without a charge. This includes marginalized, home-bound, disabled, elderly, and those in need of a bedside job. Analysts are usually profitable within the first nine-hours because they are trained on real vehicles and live customers.  VFLO©'s are incorporated, standalone enterprises that operate 24/7 from any Internet connection worldwide.

Viewed as an additional free sales resource by dealers, efficiency is maximized  when the sales profit is split and the leased vehicle is sent to a local brand dealership for physical delivery.  PAL Inc, the Trust owner/originators, and the dealerships capitalize 5X because each VFLO© analyst can sell five-to-six leases in the time it takes to physically deliver just one.  So, all PAL Platform participants' "new normal" is actually normal again, and careers are set up to grow without the boundaries incurred with indirect leasing.

Initially important, there is no cost to setup and operate the front-end and lease-end modules.  Historically, this cost ranges from $20M to $350M for indirect leasing originators.  This advantage compliments PAL's exclusivity to equal no competition for used vehicle leasing and no viable competition from indirect  new vehicle leasing or used car loans.

      

The preferred, premium market for preowned auto leasing LBS is twenty-five times larger than all 2019 used & new, sales & leases combined in the USA alone.

      

The availability of qualified vehicles for preowned auto leasing LBS is nineteen times bigger than all new & used vehicles for sale in the USA today.  Current availability of top quality used vehicles for PAL is 11,000 per day through wholesale sources alone.  About 84-million (30%) of the country's 280-million daily-drivers could and should be converted to a fair level-yield lease to extract equity, add flexibility, and drastically reduce the #1 cost in any budget – private transportation.  If just 13% converted to a PAL lease, the recession would end overnight and twenty-years of historic losses would be recovered in about five-years.

PAL master-leases are the only viable gateway to redouble auto LBS by adding an electric vehicle conversion to a leased vehicle. A good EVC will double the capitalized cost of the lease and triple the value of the vehicle, so the lessee's payment will go down in most cases.  What would be the effect if PAL bought all the police cars in your community and lease them back with a powerful EVC?  What would be the savings for the operator and customers of an EVC rental fleet? UBER? Semi tractors?  How much are the take-off parts worth to offset the cost of conversion?  The calculations for the answers on a case-by-case basis are already contained in PAL's 3-way comparison marketplaces online (and free for the asking). 

1. Auto Financial Advisers Oversight Board
   This office is the only position authorized to order purchase of a leased vehicle. AFA's oversee every transaction, it is their money that is placed in escrow, and they remain responsible for all contractual obligations on all sides of every lease. Only they are granted the power to enforce the rules of conduct for each entity's working agreement to settle losses efficiently and timely to the benefit of all concerned.

2. Auto Lease Auctions
   The ultimate marketplace for auto buyers, sellers, lessees and lessors, both wholesale and retail with 3-way bidding - cash purchase, simple interest finance & used vehicle leasing. Shoppers are furnished with seven pre-bid services online and up to eighteen customized reports and comparisons to make an informed decision. The domain also presents twelve tools & services to help dealers market qualified vehicles to the public and other dealers at the physical wholesale auctions.

3. Department of Justice & Police
   An independently funded and operated squad equipped with the best technology and procedures to protect the participants, their money, and the interests of the PAL Platform during these times of chaos, corruption, high-crimes and misdemeanors.

4.  ESP Technologies World Corporation
   An Indiana industrial computer manufacturer founded in 1979, this is the technical deck of the PAL Platform. They are responsible for all automation, support, and it is ESP's stock that backs the leases in escrow.

5. Extemplar University
   The online auto economics curriculum was created with three levels of certification from courses taught at the world's largest lease-lenders and the installations of most successful lessors. It provides hands-on training for 42 positions, continuing education, police, legal services and administration throughout the platform, throughout time.

6. Fair Vehicle Leasing Association
   This is a 501c6 business league corporation for the restoration and preservation of fair orthodox leasing. It provides a fun, free place where PAL participants govern themselves without problems, going to court or any delay.

7. PAL Owners Trust & Escrow
   The originators' owners trust and escrow company is in the making for the organization, sales and administration of PAL asset backed securities. An official copy of the trust agreement is available to qualified individuals seeking a position in it.

8. PAL Wholesale, Title & Insurance
   A licensed wholesale dealership (CIADA #S1464) to purchase pre-sold lease vehicles, ship directly from wholesale auctions with layers of overlapping insurance, nationwide, with access to Canada, Mexico and abroad.

   PALX Stock Exchange
   A private stock market (SEC Forms 1 & S-3) in the making to sell PAL LBS Portfolios and upgrades as they are created, as well as trade ESP INC and VFLO securities from time to time.

9. Preowned Auto Lessors, Inc
   A licensed lessor for the administration of preowned auto lease funding in the USA and abroad, under law, as prescribed.

10. Real-Time Residual Value Calculators
    Another first in auto history, RTRV's can be guaranteed because they are created at the point of sale using particular driver, environment, and market data on a month-to-month basis instead of a year-to-year published table. This allows for total market expansion and unlimited length of lease except where limited by law.

11. Virtual Fleet & Lease Offices
    VFLO's are the latest version of the lease selling systems that have been installed in franchised dealerships since 1985. Readers can indicate interest in a VFLO below to receive a full description of this important machinery.

Instead of a direct pledge of $100,000 to own 2.00% of the Trust for a return of $2,785,553,872 in 5-years,
you can pledge $400,000 to own 8.00% of the Trust for a return of $11,141,815,488 in 5-years
by using other people's money.

For example, you could leave your $100,000 in the bank to secure a loan for 60-months at:

3.25% APR 4.00% APR 5.00% APR 6.00% APR 7.00% APR 8.00% APR 9.00% APR 10.00% APR 15.00% APR 20.00% APR 25.00% APR 30.00% APR

Your most lucrative terms come from a structure that keeps money growing in the Trust like an annual interest-only payment of $20,000 at the end of each year, then pay back the principal of $400,000 at the end of 5 years after earning all that money.  Note: paying a higher rate for the best loan structure is less expensive than losses of Trust income from conventional monthly loan repayment.

Where there is no possibility of conflicted interests, originators have first rights to own/operate a Virtual Fleet & Lease Office© franchise for dual income.  Like the Trust, a VFLO© can grow to any size without investment, expense, or work.  One VFLO© can easily sell $5,000,000  worth of leases during its initial two-months, pay all its costs and flat-commissions from the fair sales profit and future rate participation, and automatically expand to serve the following rounds.  In our model, the "hands-off" Owner/Operator(s) (O/O) earn $9,527,477,774 PTD EBT in about 5-years. This is in addition to VFLO monthly rate participation: 

 

Rnds	Time (est.)	$O/O EBT	$O/O PTD	EMPs	LSEs	LSEs PTD
1	2nd month	$101,375	$101,375	12	179	179
2	4th month	$144,297	$245,672	17	254	433
3	6th month	$205,393	$451,065	24	362	795
4	8th month	$292,356	$743,421	33	515	1,310
5	10th month	$416,140	$1,159,560	48	733	2,043
6	12th month	$592,333	$1,751,893	68	1,043	3,086
12	2nd year	$14,570,324	$16,322,217	564	8,678	28,752
18	3rd year	$121,180,014	$137,502,231	4,691	72,172	242,210
24	4th year	$1,007,842,733	$1,145,344,964	39,016	600,250	2,017,519
30	5th year	$8,382,132,810	$9,527,477,774	324,494	4,992,222	16,782,594
36	6th Year 7th Year 8th Year 9th Year 10th Year	$69,713,406,799	$79,240,884,573	2,698,789	41,519,836	139,582,324

There is no reason for a VFLO© to stop growing, but like the Trust portfolio, the availability of premium qualified passenger cars at preferred wholesale auction may curtail sales in about eight years on this scaled model.  VFLO© income is also guaranteed, but only in certain circumstances and in a different way described in the Cost & Profit Analyzer - Section IV, on that web site.

In a tricast where one person primed and owns a whole portfolio ($5M minimum) and is the sole owner/operator of a compliant VFLO©, they may perfect and keep their last PAL portfolio.  If in fact the lease-grade averages to Anticipated, they can add 8% APR on top of what would then be their tax-deferred, fixed-income earnings.

Take a dual role, originator and owner, for non-general PAL portfolios like major fleets, larger municipal leases, government provisions, innovation leases, and sectional contracts in the Fleet lease-grade.

High-yield PAL leases will pass all legal compliance if tested and there are really no tranches in 100% enhanced LBS portfolios, which makes them easy to resell in part or in whole for a sizeable gain.  Owners could then reinvest the proceeds in another, larger PAL portfolio.  In turn, bundles of PAL portfolios may be attractive to large global LBS investors to help offset the losses in auto subprime, and the pending unknown losses because of the pandemic.