Consumer Finance Program

through Wells FargoRegional Finance Managers

Steve Johnson – West RegionSkip McCaffery – East Region

Thomas Kieta – Central/Southeast & Canada Region

Powerful Reasons to Offer Financing

• 73% credit approval rate

• 87% of approvals are closed & funded

• 85,000+ jobs financed in 2013

Why do retail businesses promoteconsumer financing programs?

• The demand exists• Powerful sales tool• Affordability• Increased purchasing power• Larger average sale

• Our Customers are comfortable using this type of financing tool:– Furniture, televisions, computers, appliances, flooring,

carpeting, new tires, and so on

Why Homeowners Use financing

• Reasons Vary– Protect Cash/Savings– Have no other option to pay– Utilize financing options regardless of available

cash– Utilize financing when makes economic sense

• We are not mind readers – Let homeowner decide if they are interested in

financing. Don’t decide for them

1. Build the Cost of Financing into your Price

2. Offer Financing on EVERY JOB!!!• Should be part of your written proposal, ad and phone script

3. Dealer Starts the Financing Discussion – early• The homeowner won’t ask about it.• “Many of our homeowners are taking advantage of our financing options.

Is this something you might be interested in?”

4. Business Culture • All employees that have contact with your customers should be able

to discuss financing options. Not sell it, but discuss it.… • Commitment – you and your employees need to understand & believe in the

financing benefits to your customers and your company.

5. Sell Monthly Payment vs. Entire Job Cost (Affordability)

Dealer Selling Tips/Best Practices

Dealer Benefits

• Lead generation/advertising message– Best in class pricing allows dealers to promote

aggressive financing call to action offers

• Close more sales– Sell affordability with low monthly payments– Make replacement more attractive than repair– Eliminate the competition by closing the sale at

the kitchen table– Reduce “sticker shock” and ease consumer

payment concerns – can focus on selecting the best system for their needs

Drive & Close More Leads

Dealer Benefits• Increase profitability

– Financing drives higher average sales price– Upgrade to higher efficiency (monthly energy savings may pay

for the upgrade)– Bundle accessories/warranties– Remove price negotiations

• Improve dealer cash flow– Ensure fast payment upon job completion

• Electronic deposit within 2 days• No collections • No bounced checks

• Separate yourself from the competition

Consumer Benefits• Allow consumer to focus on sale by easing

payment concern• Increased buying power – choose the system they really

want/need• No money down• Protect personal cash and savings

– Preserve rainy day funds for emergencies– Safeguard savings for intended purposes

• Flexible payment options• Convenient – in home, easy app and docs• No home equity or lien on property required

Ease Consumer Concerns and Meet Their True Needs

It’s easy to use for both the dealer & homeowner

Processing a Finance Transaction

Submit Homeowner

Credit Application

Authorize Transaction

(Optional)

Complete Charge Slip Installation

Request Funding

from Wells

Credit Application OptionsHomeowner Initiated Approvals via: • Dealer Website Link• Dealer Locator

-Homeowner does NOT have to complete a written credit application

Dealer Initiated Approvals via:• Wells Fargo Internet Processing System (IPS)• VRU – Phone Process (Phone in App)

-MUST have HOMEOWNER complete, sign & date a paper credit application -Dealer MUST mail the credit application to Wells Fargo-Homeowner MUST retain their copy with important disclosures

UPDATED DEALER ENROLLMENT / SIGN UP PROCESS

ADDITIONAL STEPS HIGHLIGHTED IN RED

Updated Dealer Enrollment Steps1. Dealer faxes Wells Fargo the dealer enrollment package.

2. Wells Fargo makes Introductory Phone Call.

3. After dealer participates in the Introduction Phone Call, Wells Fargowill review and approve or decline the enrollment package.

4. Now,  Wells Fargo sets up the Mandatory Upfront Training Sessionto go over important program details & documentation requirements.

• If the dealer doesn’t participate in the Training Session in a timely manner,they will be Declined.

5. Once training is completed, Wells Fargo sends 4 Emails to the dealer with merchant ID, user id’s & passwords.

• Slight Changes to Homeowner Credit Application

• Noticeable Changes to the Charge Slip Document is Smaller & significant changes to the credit

plan & sale information section. Name has changed to Invoice and Notice of Right to

Cancel

• Effective January 14, 2014. Our Dealer’s must start using the updated Credit Applications & Invoice/Notice of Right to Cancel. They should destroy the remaining inventory or the old documents.

Revised Program Documents

Invoice & Notice of Right to Cancel (was the charge slip)

Correct Form #2964STPSA(0114)

New Size 8 ½ “ by 11”

instead of 8 ½” x 14”

Section B has changed significantlySection A & C have minor changes

Formerly known as the Rescission Charge Slip/ Invoice

Homeowner Credit Application

Must be Form # XXXX(0114)

Must start using the updated Homeowner Credit Application effective January 14, 2014

–MUST DESTROY old credit applications

Effective Jan. 14, 2014. Please visit ComfortSite for

latest Rate Sheet

The Changes:• Only the plan description has

been revised.

• The Cost & Credit Plans DID NOT change.

Wells Fargo Credit Plans

Some Key Points• Closely follow all program documentation, disclosure and

advertising guidelines• Dealer Keeps Invoice/Notice of Right to Cancel form for 7

years • Mail All Paper Credit Applications to Wells Fargo

– Approved & Declined

• No Dealer / Company employees, owners, officers, managers• No Rental Homes• No Dealer Maintenance Agreements• No Pre-Funding• Only TRANE AIG Extended Warranties can be financed• Don’t charge a separate Line Item for the Finance Fee

– Build the cost into your sales price