As the world works to contain the spread of the coronavirus (COVID-19), our teams at Trane are adapting to this rapidly evolving situation. We have worked with Wells Fargo to implement the following updates to our financing program in an effort to best serve homeowners in need of new equipment who may also be experiencing temporary financial difficulties. Details about the Wells Fargo Covid Promotional Response (CPR) and special pricing can be found in the pdf documents below, but here’s a quick look at what is being offered in Consumer Loan Payments / In Lieu of Rebate:
Instead of providing the qualified equipment rebate as an “instant” reduction in the price of the job, if they choose to, dealers can provide it as an actual cash payment to the homeowner (via check payable to the homeowner). The homeowner can then utilize that money for making their first few monthly payments as they come due on their new Wells Fargo loan.
Important notes:
- The homeowner must pay Wells Fargo using the rebate dollars. (In other words, the contractor can’t make payments to Wells Fargo on behalf of the homeowner.) Participating contractors must be TCS or CC and have chosen the Consumer Rebate Growth Option Benefit for 2020.
- The homeowner should pay their minimum monthly payment each month rather than a lump-sum payment up front, if they wish to preserve their cash. If they make a lump-sum payment, the excess dollars paid will reduce the loan balance, but the homeowner would still be required to make a payment the following month.
Example:
Homeowner purchases a $9,500 Trane system that qualified for $500 in spring rebates. Homeowner finances the sale at 7.9% APR with payments of 1.75% or $166.25/month (Credit Plan #1335).
Dealer provides homeowner $500 cash instead of reducing sale price to $9,000. The homeowner would make their first 3 monthly payments of $166.25 each month with the $500 cash that they received from the contractor. The contractor files claim for rebate with Trane.