When your heating or cooling system stops working, the costs to get it fixed or replaced can be hard to pay. And when it’s a failing furnace in the middle of winter or an air conditioner that quits during a heat wave, the costs can soar due.
Unexpected HVAC expenses can strain any budget. Fortunately, flexible HVAC financing can help homeowners manage these significant costs while also ensuring comfort and efficiency in their homes.
Why Consider Financing HVAC Work?
HVAC systems are vital for ensuring a pleasant and comfortable living space, but fixing or swapping them out can be costly. Industry estimates put the price of an HVAC system replacement anywhere from $5,000 to $12,000, depending on unit size, labor, and installation-related variables.
Even smaller repairs can run into the thousands. Many people simply don’t have that kind of cash lying around, making financing a viable and helpful solution.
Types of HVAC Financing Options
Manufacturer and Dealer Financing
Numerous HVAC system manufacturers and local dealers extend financing options to customers. This enables homeowners to pay for both repairs to existing systems and for new installations, in manageable monthly increments.
These financing plans often have several attractive features, such as competitive interest rates, promotional 0% APR periods, or even deferred payment options. A few plans even roll the financing for a maintenance package into the mix, guaranteeing long-term care for your system.
Personal Loans
Another option for homeowners is to secure a personal loan from an online lender, bank, or credit union. Personal loans are mainly unsecured, which means they do not require any collateral.
This can furnish the homeowner with a cluster of cash relatively quickly. Interest rates on personal loans can vary widely from lender to lender and from borrower to borrower. Those with the best credit scores can negotiate very good terms.
Home Equity Loans and HELOCs
A home equity loan or a home equity line of credit (HELOC) can be an excellent way for homeowners to arrange HVAC financing, provided they have the necessary equity in their houses. Compared to personal loans and credit cards, these loans usually have much lower interest rates because they are secured by the borrower’s home.
Credit Cards with Promotional Offers
Some homeowners opt to fund their HVAC repair or replacement projects with credit cards that provide 0% interest for a promotional period. This works well as a short-term financing option, provided the cardholder pays off the balance before the promotional period ends.
Government and Utility Company Programs
A few state and local governments, as well as utility companies, have instituted financing and rebate programs to encourage the installation of energy-efficient HVAC systems in homes.
These programs can provide low-interest loans, grants, tax incentives, or other means to make the purchasing of high-efficiency heating and cooling systems more affordable for homeowners.
In Today’s Market, Buyers Have Numerous HVAC Financing Options
A malfunctioning or collapsed HVAC system can be a very stressful situation. Flexible financing options ensure that the necessary repairs or replacements don’t compromise safety or comfort in the home.
Different avenues of financing offer several potential solutions. Most homeowners can find one that fits their budget and allows them to get the necessary HVAC work done without breaking the bank.
