Consumer Finance Program through Wells Fargo Regional Finance Managers Steve Johnson – West Region Skip McCaffery – East Region Thomas Kieta – Central/Southeast & Canada Region Regional Finance Managers Steve Johnson – West Region Skip 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 promote consumer 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 Options Homeowner 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 Steps 1.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 Fargo will review and approve or decline the enrollment package. 4.Now, Wells Fargo sets up the Mandatory Upfront Training Session to 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 s 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, 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 significantly Section 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, 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