Do you need a new air conditioner, furnace, or heat pump because yours has reached the end of its life, it’s been damaged, or you simply want to upgrade to a more efficient unit? If so, you are likely aware that a new HVAC unit can cost anywhere from a few thousand dollars to twenty thousand or more. If you don’t have that money in your checking account or savings, you’re probably wondering how you will afford it. Fortunately, there are a variety of financing options you can choose from depending on your budget, credit score, and other factors.
Here is more information on the available HVAC financing options and how to choose the right one for your project.
Ways to Finance Your HVAC Unit
Depending on your situation, you may be able to consider the following HVAC financing options:
- Credit card. If you have a credit card with a high enough limit and enough available credit, you may be able to use it to purchase your new unit. However, if you don’t pay it off before the next billing cycle, you may have to pay a high percentage of interest.
- HELOC. A home equity line of credit is a great way to pay for your HVAC unit if you own your home and qualify. Unlike a loan where you take out a certain amount of money, you will have a revolving line of credit that you can use on a variety projects.
- Home equity loan. This is similar to a HELOC but is a loan rather than a revolving line of credit.
- Unsecured personal loan. You may be able to qualify for a personal loan if you do not own a home or cannot qualify for a HELOC or home equity loan. These types of loans usually have higher interest than those that use your home as collateral.
- Financing offered by your HVAC installer. Many contractors offer their own HVAC financing options. These can be very beneficial options as some feature 0% for a fixed period of time and are tailored to the purchase of HVAC equipment.
Choosing the Best Option
How can you decide which HVAC financing option is best for you? Consider the following:
- If you own your home. If you do, you may want to first consider a HELOC or home equity loan as these usually offer low interest rates.
- If the HVAC company offers their own programs. Always ask the company that installs your new system if they have HVAC financing as they may have an option that features 0% interest.
- When you’ll be able to pay it off. If you think you can pay off your purchase within a few weeks because you will be getting a bonus or freeing up funds quickly, you might want to put the purchase on a credit card as this is the easiest option and you may get rewards from your credit card company.
HVAC Financing: The Right Option for You
If you need a new furnace, air conditioner, or heat pump and can’t pay cash for it, you don’t need to worry. There are a variety of HVAC financing options available that can help you pay for your new unit so you can enjoy comfort and efficiency all year long.
