No one wants to hear those fateful words, “It’s time to replace your central heating or cooling system.” Sooner or later, no matter how long your equipment has been running, your heating and cooling system will need to be replaced. But when that time comes, your wallet may not be ready! That’s where financing can help keep you comfortable!
What Is HVAC Financing?
HVAC financing helps spread the cost of new equipment or entire systems over a predetermined amount of time. Why dip into savings you may have earmarked for another purpose, add to an existing credit card balance or even consider a home equity line of credit? Financing can be an effective means to fit a replacement system or equipment into your budget without breaking the bank.
Base Your Decision on Comfort, Not Budget – Apply for Consumer Financing *
There are many financing options available to make your new home comfort system affordable that can fit almost any budget. Your new home comfort system is a very important investment that can offer energy savings for many years to come. If you’d like to enjoy the comfort that comes from a high-efficiency home comfort system installed by our professional HVAC technicians, then please complete the form below to get started.
- Low monthly payments
- Competitive interest rates
- No down payment required
Is Financing A Good Option For You?
HVAC financing can help take the sting out of a major purchase, such as a new central air conditioner or furnace unit! In addition to saving cash, financing also lowers monthly payments so if an unexpected expense occurs (such as medical bills), it won’t feel like such a burden. But financing is right for you if:
• You’re willing to pay off your loan over time. The financing process works best if you are able to make monthly payments, because interest continues to build up when there are no scheduled repayment amounts due. However, it is possible, although not easy, to refinance and use the same financing on another purchase (if you sell or give away an existing unit that was purchased using financing).
• You have a stable income and satisfactory credit history. Since financing companies want their money back at some point, they will want proof that you can afford a new system and then continue making timely mortgage payments (or rental/lease payments). Most financing companies will check your credit history and will want to see that you have made timely payments on other loans.
• You are financing a large purchase. Most financing companies permit financing for up to 100% of the final purchase price, but some offer financing for as much as 120% or even more! This means financing can potentially cover everything but your land (and maybe even your land too). And it doesn’t necessarily mean you need a huge down payment either; financing companies typically require only 10 - 20% of the total cost in cash or trade-in equity.
• You have plans to keep the system long-term. Financing is only available for new systems, so financing won’t help if you are looking for financing options on used equipment. An advantage of financing in this case is that financing companies will typically take trade-in equity from an older system as part of the down payment required to finance a newer unit.
• You want to save money over the life of your new purchase. When all monthly financing payments are considered, financing can sometimes end up costing less than paying cash or taking out a traditional loan. This occurs because interest rates for financing (5 - 10%) tend to be lower than consumer debt rates (e.g., interest and credit card fees). And since financing companies take a security interest in the equipment financing is used to buy, they are more likely than traditional lenders to accept higher-risk financing scenarios (e.g., financing for customers that have less than perfect credit or financing for loans larger than the typical mortgage).
When Financing Is Savvy
There are some situations where financing can be particularly helpful. The biggest advantage comes when interest rates on consumer debt (e. g., credit cards) have risen above the financing rate offered by companies that offer HVAC financing. For example, if your loan at 12% APR is lower than your credit card rate at 15% APR, financing can end up saving you money. A second advantage is that financing companies will typically offer lower interest rates to more careful borrowers (customers with previous financing or loans). They often won’t require down payments but instead may accept trade-ins and even permit the financing of 100% of the purchase price.
Other situations where financing can be helpful are when your current equipment is out of date and needs replacing; financing companies may help spread the cost over a few years if they can use your existing system as part of the financing package. Another situation where financing might make sense is if you have large cash reserves but want to avoid paying tax on those reserves until you really need them in retirement --financing offers a way to defer tax payments.
There are financing options available for a range of projects and situations. The financing options include:
• Equipment financing. It can help you get the right heating or cooling system for your home, including duct-work and installation if needed.
• Repair financing. Here, instead of purchasing heating or cooling equipment, you finance just the repair work required by your current furnace or air conditioner.
• Business financing, If you own a business that needs major upgrades -- like installing heating and cooling equipment -- financing can help make it happen quickly.
What You Should Know Before Signing:
As with many purchases – especially large ones -- it’s important to understand what is being offered before signing up for HVAC financing. Understanding exactly what financing entails will reduce the chance of missing critical information during the loan process. For example, when repaying an installment loan over time you have been provided with a total payment amount but not its breakdown (e. g., how much is financing per month). The financing company can’t usually tell you; and if they try, it may be in an imprecise or difficult-to-follow manner.
Here are three questions that need to be answered before signing up for financing:
1) What is the total payment amount? This includes principal (ie, what you borrowed), interest being charged and special fees like annual service charge (which covers administrative costs and possibly loan insurance).
2) How often will I have to make payments on the loan? Monthly payments are most common but financing companies also offer quarterly and half-yearly installments.
3) What happens when the financing period ends? If possible you should find out if the financing agreement automatically rolls into a new financing period or terminates.
Applying For Financing
Now that you understand what financing entails, the financing application process should be much easier. Application procedures vary depending on whether you are financing equipment purchase or repair.
Initial financing request: Complete financing application. Provide the following information:
• Personal data including your name, social security number, address, email, and telephone number;
• Front & Back pictures of drivers license or ID;
• Employment status, employer, years with employer ;
•Whether you rent or own place, monthly payment for place, years residing at location;
According to financing company’s requirements choose one of financing options
Financing agreement finalization: After financing request is approved, the financing company will contact you with terms and conditions for financing agreement.Make sure financing agreement does not include any surprises – it’s your right to read financing agreement carefully and ask financing company representatives for clarification.In addition to the financing agreement, financing companies will usually issue a financing contract that lists your obligations under the financing agreement. It is important for both your records and financial protection purposes to keep these documents in order to understand how long payments are due and what conditions must be met before a loan can be paid off early.
Contact Us Today To Learn More About Your Options!
We know that looking for a HVAC financing option can be overwhelming. That’s why we offer quick and easy financing so you don’t have to worry about it! Our team will work with your credit score, income level, and other factors to find the right plan for you. Think of us as an extension of your budget adviser or accountant—except our goal is to make sure you stay comfortable all year round no matter what the weather brings. If you need help finding the perfect solution for your needs, give one of our professionals a call or schedule online. They would love nothing more than to talk through any questions or concerns you might have in order to get everything set up just right.