If you’ve been having repeated problems with your HVAC system, it may be time to replace it. HVAC replacements can be expensive, though, and many people in California turn to financing to make the swap. The number of options out there can be daunting, however. That’s where this article comes in. Let’s take a look at some of the ways to finance your new HVAC system.
Put It on a Credit Card
If you have a credit card, you may be able to use it to finance your new HVAC system. This is a great option if you already have a high line of credit or if you have great payment history and can ask for a credit line increase. However, you should keep in mind that the interest rate may be higher than it would for other types of finance options, and you may find that putting such a large purchase on your credit card brings down your score temporarily.
Get a Personal Loan
Even if you have less-than-stellar credit, you can still get a personal loan that you can use to pay for your new HVAC system. Before being approved for a loan, you may need to provide bank statements, pay stubs, and proof of collateral. In order to increase your odds of getting a personal loan, you may need to have a cosigner as well. Loan approvals can take several days, so you shouldn’t wait until the last minute in order to try to secure the loan. Before applying for a personal loan, it’s imperative that you thoroughly research lenders and talk to them about things like interest rates, eligibility requirements, and the different types of loans that they have to offer. If you aren’t sure where to start, reach out to your bank or local credit union. They may have several different personal loan products available for you to choose from.
Finance It Through the HVAC Company
Many HVAC companies do offer financing to their customers if they are making a large purchase, contingent on approved credit. This type of financing works the same way as an installment loan, in which you make payments over time. Depending on the financial institution your HVAC company works with, some financing programs will offer low interest rates if the purchase is paid off within a specific period of time. Often, the interest rates you’ll see through your HVAC company are lower than those of personal loans taken out through a bank.
Before financing your HVAC system elsewhere, it’s a good idea to talk to the HVAC company that’s going to install the new system to see what financing options they have available. This will allow you to determine if it will be cheaper and less time-consuming to finance it through them. At We Care Plumbing, Heating, & Air, we have various options to assist customers with approved credit finance the purchase of a new HVAC system from us.
Use a Home Equity Loan
If you are looking for a way to pay for your new HVAC system without having to pay hefty interest rates, consider getting a home equity loan. With these types of loans, you use the equity you’ve built as a form of collateral. While the interest rates tend to be low, remember that you need to pay off the loan or risk consequences from your financial institution. It is also important to note that it does often take a bit of time to get approved for this type of loan, so it may not be in your best interests to apply for a home equity loan if you need to get your HVAC system replaced as soon as possible.
Utilize Government Programs
Depending on where you live, you can utilize government programs to get help paying for your HVAC system. These programs will have different requirements, and you will often need to use your primary residence as collateral. The big perk to using a government program is that the payments are often fairly low. Because these programs are provided through the federal government, it’s best to contact them to find out what programs they currently have available when you are ready to finance a new HVAC system.
To incentivize homeowners to make the swap to more-efficient HVAC systems, some states even have programs with fewer requirements. In the state of California, one major program is the Residential Energy Efficiency Loan program, which doesn’t require homes as collateral and provides options for people with lower incomes and credit scores.
Why Finance a New HVAC System?
If you still aren’t sure whether or not financing a new HVAC system is something you ought to do, you should consider the following benefits:
You Can Increase Your Home’s Value
Your home may increase in value if it’s in good shape. This includes having an HVAC system that’s working properly. Even though you will be spending money on a new HVAC system, it could end up paying for itself if your home’s value increases.
Your Home Will Be More Comfortable
In southern California, it can be difficult to keep your home at a comfortable temperature during extreme weather. If you’ve been putting off getting a new HVAC system, you may have found that you don’t enjoy being at home that often because the interior temperatures are unbearable at times. Fortunately, after you finance a new HVAC system, your home will easily be able to maintain whatever temperature you set the thermostat at.
You May Be Able to Avoid a More Costly Repair
It’s not uncommon for HVAC repairs to worsen the longer you put them off. If you have a system that’s still working intermittently but needs to be replaced, you can avoid a costly repair by going ahead and replacing it even if it means that you have to finance the purchase.
Your Savings Won’t Be Depleted
Even if you have enough money in savings to pay for a new HVAC system, you probably don’t want to deplete it all just in case some sort of emergency arises. This is why it can be beneficial to finance a new system instead. You won’t have to put off making this major repair, and you can always take money out of savings to pay off the HVAC system early if you wish to do so.
Hearing that you need a new HVAC system may make you panic because you don’t think you have enough money to pay for it. Fortunately, there are some ways that you may be able to finance your new HVAC system so that you won’t have to continue putting off this important purchase.
At We Care Plumbing, Heating, & Air, we’ll work with you to help you get the new HVAC system you need. We’ve been doing this for over 20 years, and we have offices in Temecula, Murrieta, and Orange. In addition to HVAC installation, repair, and maintenance, we can also handle a full range of plumbing services. Give us a call today to find out more about how we can help you maintain, fix or upgrade your home’s HVAC or plumbing system.