With utility costs going up every month and credit getting harder to find, we want to offer suggestions on how to finance a new heating and A/C system for your home or small commercial building. Making a smart decision to replace your broken or inefficient HVAC system can deliver more comfort and lower your heating and cooling bills every month. Using a cost savings estimator tool (all of which must make some assumptions to cover unknowns), you can easily figure out the payback period for the new equipment. (We wrote about those in our blog two months, in August). Since a heating and AC new system should last much longer than the payback or break-even period, you can get a return of your investment and on your investment.
Heating and AC System Financing Through Your Installer
The first place to look for financing is through the company that installs your furnace and A/C system. For many reasons, you must pick this company very carefully. It is by far the most important decision you will make towards your comfort, costs, and overall satisfaction with a new HVAC system. The local company that installs your system will usually have financing programs from the equipment manufacturer. They might also have arranged third party financing through a local or national lender. Examples of programs from a manufacturer would 12 months same as cash. As in all financial and contractual matters, be sure to read the fine print, front and back, of all documents. Also, pay special attention to the requirements for paying on time and penalties if you were to be late with payments.
Check Out Your Local Credit Union for HVAC financing also
Another, often overlooked, source of financing is through a local credit union. Credit unions have a long history of lending locally. They typically have lower fees and are usually more customer oriented than commercial banks. For a long time, most credit unions were only available through employers. However, in recent years, there are credit unions that are generally available to anyone in the community. This category is called community chartered credit unions. To find one in your area, use a search engine and enter a credit union and your city or a community chartered credit union or visit the NCUA website.
If there is not a community chartered credit union in your area, you might be able to get access to one by joining a organization. As an example, in our hometown of Austin, there is a really good credit union for the University of Texas. Originally opened for faculty and staff, now anyone in the community can be a member by joining the nearby food coop.
Utility Company or Other HVAC Rebate Programs
Regardless of where you finally get financing, remember to ask about rebate programs. These are often from your utility providers, but can also be local, state, or federal programs targeting your area. You might start there first and see if they list lenders who are approved to apply the rebate program.
We look forward to reading your ideas and experiences on this topic.