Utility Bill Assistance

 

 

The Advantage of Financing an HVAC purchase.

Unexpected bills can wreak havoc on a family's budget, causing stress, strain and worry. One major expense that many households face is replacing their HVAC system, either air conditioner and/or heater. There are pros to financing the unit due to the cost involved as well as term involved as they may need replacing every 10 to 15 years and can cost $3000 to $10,000 or more.

The fact is that some things just can't be avoided like repairing or replacing a faulty HVAC system in the home. Many HVAC companies are extremely sensitive to their customer's financial concerns. They also know that air conditioning and heating are essential for comfort and happiness of the families they serve. That's why often provide affordable financing options for all of their HVAC customers.

Don't Put Off HVAC Repairs or Replacement

While a homeowner may feel like they're saving money by continuing to use their current HVAC system, the truth is, they are not. An old, inefficient furnace or air conditioner will only increase their utility bills every month, creating a stressful, difficult situation. This is when it may be worth considering spending the funds for a new unit, even financing the several thousands dollar cost of the HVAC system.

Choosing to do minor repairs is an option, however, once those repair bills add up to more than a replacement would cost, the money is going in the wrong direction. It's a more expensive endeavor when a homeowner puts off HVAC repairs or replacement until it's gotten out of hand.

Why Update HVAC Systems?

There's no denying that furnaces, air conditioners, and other HVAC equipment can be expensive. For a family that doesn't have a lot of extra cash in the bank the decision to update can be a difficult one. After all, there are many other things the family needs as well and the family leaders certainly don't want to deny them anything.

 

 

 

 

The reality is that a comfortable home, one that's cool in the hot summer months and warm in the winter, is one of the most important things that anyone can give them. The best way to do that is with an upgrade to a newer, more efficient HVAC system.

Increase the Home's Value

A new HVAC system can increase the value of a home and make it more attractive to future buyers. According to the National Association of Realtors, a homeowner can expect a 71% return on their investment of a new HVAC system. This means if you spend $10,000 on a unit, the homeowner will recoup $7100 at the time of resale. Many times, prospective buyers will ask when the HVAC system was installed or replaced. They'll take that information into consideration when comparing homes for sale and may well choose the home with the newest HVAC system to save money in the future.

HVAC Financing Options

Whether they have the cash on hand or not, every family deserves the best HVAC system available. Many hometown air and heating companies believe that it's their job to help make that happen, so an installer may offer financing options. Manufacturers, including Trane, Goodman, Carrier and others also provide low cost loans or financing to customers. In addition, utility companies may also offer grants, rebates, or low cost APR financing as they want their customers to have efficiency heaters and coolers too.

 

 

 

 

Whether a homeowner is considering making HVAC improvements because of an old system, or because they're trying to increase the home's value, HVAC companies offer some outstanding, affordable financing options.

How to Apply for Financing

HVAC companies or manufacturers that offer customer financing generally do so in partnership with a bank or credit card company. The homeowner completes a simple application process online and often receive a fast response to their application. Once their credit is approved, they also enjoy excellent, competitive rates, low payments and more.  The fast process helps people get the HVAC upgrades, repairs, or new systems they need quickly and without hassle.

Utility and energy companies however will often have their own programs. Call them for assistance. Their application process for a loan or low cost financing may be a lot different. Sometimes they will help install units too.

Always consider the interest/APR rate. It needs to be very low (or even zero) to consider financing. Shop around for the best deal. Remember a car loan will often have a very low single digit APR rate and a credit card mid teens to low 20% APR rate. An HVAC system should be much closer to a car interest rate than credit card.

Some states may offer income tax rebates or credits for a new HVAC system. Or they will offer low cost loans when buying a new furnace or air conditioner. To learn about any financing from your state government (or even tax credit) then ask your utility company.

Financing Options

There are a variety of financing options that help people get the HVAC updates and upgrades they need, when they need it. Some of the benefits a person may receive when financing an HVAC purchase include:

•Affordable Monthly Payments
•Deferred Interest Options
•No Interest If Paid In Full Options
•Fix Payment Options
•Income Tax Credits
•Competitive, Low APRs
•Preferred Customer Low Interest Rates
•Flexible, Manageable Terms
•Quick, Easy Online Application Process
•Fast Credit Approval Decisions
•Homeowner's Revolving Line Of Credit
•Open Credit Line To Help Facilitate Future Purchases
•Online Account Management And Bill Payment Options

Promotional HVAC Financing

Some HVAC companies also offer new customers special promotional deals for using their finance company or credit card. A manufacturer, such as Rheem or Trane, may offer these financing loans as well to help drive sales to new customers who have not used their HVAC system in the past. Special promotion programs offer a range of financing options, rebates, and credits to help ease the pain of making such a large purchase.

Many financing plans include:

•Zero Down Options
•0% Financing
•No Prepayment Penalties
 •State Utility Rebates
•Manufacturers Rebates
•Tax Credits for Qualified Purchases of Energy Efficient Products
•Multiple years to repay the cash

 

 

 

 

Consider It an Investment

A homeowner who is faced with the prospect of spending thousands of dollars on a new furnace, air conditioner, or complete HVAC system may be a bit nervous. After all, that's a lot of money. But kind in mind a new system is more efficient, so it will reduce your monthly utility bills.

However, if one considers this type of expense as well as financing as an investment (increase in home vale and monthly utility bill savings), it makes the blow a little lighter. At some point the value of the investment will be seen in the form of lower utility bills and an increase in home value. Perhaps the highest rate of return comes from knowing that the family is comfortable no matter the season.

 

By: Jon McNamara

 

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