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Financing a new HVAC system

Posted on by Chad Cole
23
Jan

FINANCING OPTIONS IN GENERAL

Financing options for HVAC (heating, ventilation, and air conditioning) systems can vary depending on various factors such as your location, the type of system you’re installing, and the financing providers available. Here are some common ways people finance HVAC systems:

  1. Personal Savings: Some homeowners choose to use their personal savings to pay for a new HVAC system. While this avoids interest charges, it may not be feasible for everyone.
  2. Home Equity Loans or Lines of Credit: If you have built up equity in your home, you may qualify for a home equity loan or line of credit. This can provide a lump sum or a revolving line of credit with your home as collateral.
  3. Financing Through HVAC Contractors: Many HVAC companies offer financing options for their customers. This can involve working with a third-party financing company that the contractor has partnered with.
  4. Credit Cards: Some homeowners use credit cards to finance HVAC purchases. This may be convenient, but it’s important to consider interest rates, as credit card interest can be high.
  5. Government Programs and Incentives: In some regions, there are government programs or incentives that offer financial assistance for energy-efficient HVAC upgrades. Check with local authorities or energy agencies to see if you qualify.
  6. Manufacturer Financing: HVAC manufacturers may provide financing options for their products. This could involve promotional financing with low or zero-interest rates for a certain period.

Before choosing a financing option, it’s essential to carefully review the terms, interest rates, and any fees associated with the financing. Additionally, consider your budget and financial situation to determine the most suitable option for you. If you’re unsure about the specific financing options available in your area, it’s recommended to contact local HVAC providers or financial institutions for more information.

What we offer

Here, at The HVAC Outlet, we offer several financing options. We utilize Synchrony Bank and Service Finance Company (a subsidiary of Truist Bank). Their terms are tremendously flexible: 6-24 months same as cash (equal payments, no interest) or 5.99% until paid in full.

The 6-24 months same as cash

“Same as cash” financing is a type of financing arrangement where the borrower is given a specific period during which they can pay off a purchase without incurring any interest charges. This type of financing is often used by consumers in various situations:

  1. Promotional Offers: Retailers or service providers may offer “same as cash” financing as a promotional deal to attract customers. This is commonly used in the sale of big-ticket items, such as furniture, appliances, electronics, or HVAC systems.
  2. Deferred Interest: In some cases, the financing may be advertised as “no interest if paid in full within a certain period.” Consumers may opt for this type of financing when they want to make a purchase but prefer to spread the payments over time without incurring interest, provided they pay off the full amount within the specified timeframe.
  3. Temporary Cash Flow Issues: Individuals facing temporary cash flow challenges may choose “same as cash” financing as a way to make a necessary purchase without paying interest immediately. This allows them to defer the full payment until a later date.
  4. Emergency Expenses: In situations where unexpected expenses arise, such as a home repair or medical expense, people might use “same as cash” financing to manage the cost over a defined period without the burden of immediate interest charges.
  5. Budgeting Purposes: Consumers who are disciplined with their finances may use “same as cash” financing as part of a planned budget. They may choose this option to make a purchase while keeping their budget intact, provided they can pay off the balance before interest kicks in.

It’s important for consumers to be aware of the terms and conditions associated with “same as cash” financing. If the full amount is not paid off within the specified period, retroactive interest charges may apply. Additionally, people considering this type of financing should ensure that they have a clear understanding of their ability to meet the payment terms to avoid costly interest fees.

5.99% Interest Option

This is a very low interest rate for an unsecured loan. This will allow the consumer to budget their finances accordingly and give me time to pay off the loan. Typically, this loan just requires a minimum monthly payment to remain in good standing with the creditor. Exercising this option will lead to a lower monthly payment for the consumer, but will incur more interest and take more time to payoff the loan.

Either option to can be utilized for Rheem or MrCool equipment.

Chad Cole