CAN YOU FINANCE A NEW HVAC SYSTEM? 4 OPTIONS TO CONSIDER
Yes, you can finance a new HVAC system and finally get the energy-efficient model you’ve always wanted. Additionally, you can finance related upgrades for even more long-term savings and health benefits.
Some homeowners and business owners finance a new HVAC system with a smart thermostat to get more control over their energy use. Others finance a new HVAC system and a UV air purifier to enjoy cleaner indoor air. If you don’t want to dip into your rainy-day fund for a new upgrade, financing could be a flexible option that still gives you exactly what you need.
Need a quote for a new HVAC? Give us a call to speak with a representative!
HOW HVAC FINANCING WORKS
Do most HVAC companies offer financing? Absolutely. Just like financing a car or a house, financing your HVAC installation involves splitting up a larger payment into several smaller payments. HVAC brands have been quick to adapt to a culture that prioritizes flexible payment plans over large, upfront lump sums.
Depending on factors like the business you’re working with and your credit score, you’ll have certain interest rates and repayment deadlines to follow.
4 COMMON HVAC FINANCING OPTIONS
Before you learn how to finance an HVAC, let’s explore your different financing options. Each one comes with pros and cons, so it’s helpful to think of these as better or worse rather than right or wrong.
1. HVAC CONTRACTOR FINANCING
Financing directly through an HVAC contractor is rather convenient since you don’t have to work with multiple lenders. You can set up a financing deal in the same place you get your HVAC and any related upgrades like air purifiers, smart thermostats, or new ductwork.
The downside is that you may not meet the specific conditions of a particular contractor. They may prefer specific credit scores or partner with a bank you don’t use.
2. PERSONAL LOAN
A personal loan is a broader resource that lets you get a certain amount of money for whatever you need. Some buyers use personal loans to cover a large home improvement project or other bills alongside current projects.
As such, personal loans might be a more flexible choice if you plan on investing in several different projects at once. Unlike HVAC contractor financing, which is restricted to an HVAC or similar upgrades, you could take out a personal loan for an HVAC and a new roof.
The downside is similar to the first section: you may be denied a personal loan outright or a higher loan amount if you have a low credit score. You may also be required to put up personal belongings as collateral in the event of non-payment, such as your car or business equipment.
3. CREDIT CARD
If you don’t want to go through the approval process of a personal loan, but still want more flexibility than an HVAC company, you can finance a new HVAC system with a credit card. These options are some of the most straightforward for many homeowners and business owners since they’re available at your bank and offer instant access to a credit line.
Credit cards generally come with higher interest rates, and may switch to even higher penalty rates if you don’t pay on time. One way to avoid high interest rates is to find a card with a low-interest introductory offer for a set period, such as 12 or 18 months, but the interest rate will jump to the normal rate at the end of that period. Again, be careful to make payments on time to avoid switching to the penalty rate.
4. HOME EQUITY LOAN (OR HELOC)
A home equity loan works similarly to a personal loan, though with a more specialized focus. While a personal loan can use multiple belongings as collateral, a home equity loan uses your home as collateral. With a home equity loan, you borrow exactly what you need and get a long repayment period, such as 10 or 20 years.
These loans function similarly to a mortgage and are great options for homeowners with steady income and good home equity. However, their interest rates can fluctuate with the prime interest rate, and non-payment can result in a housing foreclosure.
Want to learn more about costs? Read our guide on HVAC cost forecasts for homeowners and what you should start planning for in your budget.
HOW TO CHOOSE THE BEST FINANCING OPTION
All financing options are valid, depending on your yearly income and personal preferences. An option that works great for one person may be difficult or even stressful for another.
For example, you can finance a new HVAC system with direct financing if you don’t want the higher interest rates of a credit card. Another person may prefer a credit card for building their credit score.
When exploring how you can finance an HVAC replacement, ask yourself these questions to narrow down the best fit:
Do I have steady monthly income for on-time monthly payments?
Do I want to improve my credit score while financing an HVAC?
Do I also need to finance other home improvement projects?
It’s important to remember that financing an HVAC is not a bailout. It’s a cash-flow management tool that reduces stress while still giving you the new installation your home needs.
WHAT IMPACTS HVAC FINANCING APPROVAL?
You’ll have more financing options open to you across the board if you get a few ducks in a row first. Your HVAC financing approval is more likely to go through if you have:
A higher credit score (such as 550 to 600+)
A low debt-to-income ratio
Reliable income verification, including paystubs and tax returns
It’s worth taking a little time to review your financial situation to increase your chances of approval. When you want to keep up with the latest HVAC trends without breaking the bank, financing options are a smart option to maintain your cash flow.
FINANCING FOR NEW JERSEY BUSINESS OWNERS AND LANDLORDS
There are many practical and financial reasons to enjoy the reliable performance of an energy-efficient HVAC system for your business or complex. New Jersey has a highly variable climate that swings from hot, wet summers to freezing winters.
Business owners and landlords have an obligation to keep their customers and tenants safe with modern equipment. Recent research points to even more extreme temperatures in the future, making dependable HVAC systems a must to keep everyone comfortable.
New models are also important for safety. Old HVAC systems are not just unreliable; they have a higher risk for leaks or complete breakdowns when tenants need them most.
WHY CHOOSE AN HVAC CONTRACTOR THAT OFFERS FINANCING?
Which HVAC contractor in New Jersey also offers financing? Look no further than A.J. Perri, a local home services brand that’s been serving homeowners and business owners since 1971. We partner with Goodleap to provide all our customers a flexible financing option for new HVAC systems and related installations like humidifiers or Nest thermostats.
Our local expertise gives us deeper insight into New Jersey’s climate and home styles. With our transparent pricing and financing options, you have a fully personalized roadmap toward an HVAC you can count on for years.
Don’t wait for a heating or cooling emergency before reaching out for help. You can finance a new HVAC system and split the final cost into several manageable payments.
Schedule an appointment with A.J. Perri today to start looking at new models and financing options for a replacement HVAC.
