Most finance gurus recommend having at least six months worth of household expenses saved for a rainy day, but this goal seems a little lofty for most people. The unexpected news that a home needs a new HVAC unit can be devastating for homeowners who don’t have a lot of money saved up for a rainy day. A new HVAC unit can cost thousands of dollars, which can impact the average person’s finances.
The good news for homeowners who do not have a large amount in savings is that many HVAC companies offer financing to help you pay for a new HVAC system in convenient monthly installments. However, before signing up for one of these financing agreements, there are a few things you should consider.
1. Interest Rate and Terms
Just like any other loan you might take out, such as a car loan or a line of credit, financing your AC unit can result in you paying much more than the purchase price over the life of the loan. Though you may need a new unit, you don’t want to get into a finance agreement that will end up with you losing money on the transaction.
Before signing on to finance the unit, make sure the company is offering a competitive interest rate and a reasonable amount of time for you to pay the loan back. You also want to be sure that there are no severe fines for making late payments or increases in the interest rate as time goes on.
2. Monthly Payment Options
Working with a small finance company that only takes payment via check or in person in their office is an inconvenience that is likely to get on your nerves over the months. If you’ve got a busy life, taking time out to make payments is not high up on your list of things to do. Look for a company that makes it easy to pay your HVAC financing each month without going out of your way. An online portal is by far the easiest way for you to make your monthly payment without having to leave the home or mail anything.
3. Incentives for Buying Energy Efficient Unit
Buying an energy efficient air conditioner helps you reduce your impact on the environment while also decreasing your monthly utility bills. But these systems can also come with some special incentives at the time of purchase. Some companies will give better financing terms for customers who are buying green friendly units or allow the customer a longer time to pay the unit off. These incentives can make it much easier to purchase an energy efficient unit
If you need HVAC financing to get a new unit into your home, call Brody Pennell Heating and Air Conditioning at (310) 896-4911. We offer 18-months special financing with approved credit.