Financing a New Air Conditioning Unit: Everything You Need To Know

ac energy consumption audit by Morelli hvac experts

Is your air conditioning unit not working? Has it been a few years since you last replaced your old one? If this is the case, you may want to look into getting a new air conditioner. You’ll need to consider some things before buying a new one, though.

In this blog post, we will explore all your financial options so you can make informed decisions when purchasing a new air conditioning unit from air conditioning companies in Charleston. Let’s get started.

What Is HVAC Financing?
It’s not uncommon for the cost of installing HVAC systems to be more than a business can afford upfront. That’s where financing comes in.

HVAC financing typically involves taking out a loan that will cover the entire cost of your new heating, ventilation, and air conditioning system over time through monthly payments. This means that with no upfront cash outlay on your part, you’ll have immediate access to energy-efficient heating and cooling equipment without breaking the bank!

Payments are made each month, and depending on the loan terms, it can take between 2 and 6 years before the loan is paid off.

What Are The Benefits of HVAC Financing?

Purchasing an air conditioning unit can be rough on your cash flow, especially if you hadn’t budgeted. Financing options help bridge the gap between equipment costs and available funds so that you don’t have to come up with all the money right away or else be without heating or cooling.

HVAC system loans give you more flexibility with your finances. You can free up your budget towards other projects while taking care of the installment payments for this expensive machine. It will help you tackle costs more effectively since payment is spread out over time.

The financial options for HVAC systems are like a buffet. You have a wide range of options to choose from, so you can find what fits best with your specifications.

What Are the Financing Options Available For HVAC?
There are several ways to finance HVAC systems, no matter what kind of budget you’ve set aside for this project. You are sure to find something that works for you.

Here is a quick breakdown of some of the most popular financing options.

1. A Personal Loan
Personal loans are a great way to finance your HVAC system. They usually require one or two days for approval, allowing you to quickly get the money you need. You can research different lenders to find out who has the best rates. Rates will usually depend on what type of loan(s) you are looking to get approved under (i.e., personal vs. home improvement).

You will need to research different lenders to find out whether you meet all eligibility requirements before applying. In most cases, lenders will offer you a more favorable loan term if you have a high credit score. You can check your credit report here.

2. Credit Cards
Some HVAC services offer the option to finance using your credit card. Moreover, if your AC needs some minor work, such as refrigerant, you can easily use your credit card to cover these costs.

Credit cards usually come with significantly higher interest rates than loans or equity so that this debt might cost you more. However, credit cards are an excellent option if you have just signed up and the card comes with an introductory 0% APR. Just ensure that you have settled the balance before the intro APR ends to avoid paying huge interest.

Using a credit card for HVAC financing may also increase your credit utilization and negatively affect your credit score.

3. Using an HVAC Company
Some HVAC companies offer to finance their customers. Typically, this comes in an installment loan similar to what is available with personal loans, except it is specific only to heating and cooling equipment. The company may connect you with a partner lender or collect payments directly over time.

Financing through an HVAC company is very convenient since you are only dealing with one company, and it allows you to borrow the exact amount of money you require.

Ensure that you have compared the interest rates offered by HVAC companies to those of other financing options to avoid inflated rates.

4. Home Equity Loans
You can get a home equity loan from your bank. It’s like a second mortgage where you use the equity built up in your home as collateral for your loan. You will get these loans from online lenders specializing in home equity loans, local banks, and credit unions.

While home equity loans have a lower interest rate than the other methods in this list, they come with an added risk of losing your home should you default on payment. Credit decisions are also much slower than with other methods of HVAC financing.

5. Loan Programmes
The FHA PowerSave Loan Programme allows you to borrow up to $7500 without putting your home as collateral. Only people with home equity are eligible for the PowerSave Loan Programme.

If you are a low-income household, you can also consider applying for a Low Income Home Energy Assistance Program (LIHEAP), grant which gives grants to low-income families to assist with their energy costs.

Key Takeaways
If you are looking for a way to install new HVAC equipment but don’t have the funds available upfront, financing is worth exploring. There is no need to worry about where you will get financing, as plenty of options will work for your needs.

From personal loans and home equity loans to loans by the heating and air companies themselves, you must take into account all options before making any decisions.

At Morelli Heating and Air Conditioning Inc, we offer heating, ventilation, and air conditioning services for our residential, industrial and, commercial clients. We can guarantee you the best services in Charleston– your satisfaction is our priority!

Feel free to contact us today for all your Charleston heating and air needs in , SC, and we’ll be more than willing to assist!