Creative Ways to Finance Your A/C System
An A/C system can be an expensive, but necessary, upfront cost on a household with the average
cost in Texas to purchase and install a new air conditioning unit being $5,944 with a typical
range of $4,327 to $7,966. The national average is lower than Texas’ average at $5,347 and a
typical range of $3,728 to $7,175.
At EcoZapp, we realize an often unexpected $6,000+ often causes stressful situations. Usually when A/C systems go out, finding a fast and convenient way finance a larger than normal purchase relies stresses and headaches. Not all companies offer financing as the service company often loses a few percent more than credit card transactions. Both Credit Card Transactions and Credit Transactions usually incur extra fees for the ability to process your payment. Also make sure before receiving bids that the company offers financing to broaden your options.
We value our customers and have written
this blog to get the creative juices flowing for creative ways to finance your A/C system.
Through partnership, EcoZapp A/C Efficiency can offer several financing options for qualified
applicants so of which include:
One option would be to finance the A/C unit through HVAC Financing at Synchrony Financial.
Often times, pending credit approval, this can be a 0% finance option for the first 18 months and
then an interest-bearing option out to 10 years. This helps defer the initial cost of purchasing and
installing an A/C unit. By doing so, the stress of having to depart from roughly $6,000 all at once
is relinquished and can be spread out over 10 years. Should you not want to accrue any interest,
with 18 months of 0% APR, you can spread the cost over a year and a half without spending any
extra money on interest, it would simply be the principal balance spread over 18 months.
Being a private label Goodman Dealer, EcoZapp also has connections to Goodman’s resources.
Goodman offers a Consumer Finance application and approval process through GreenSky Trade
Credit, LLC. With this option there is no down payment required, the monthly payments are low,
and the interest rates are highly competitive. Remember, the decision to purchase a new A/C
system should be more heavily weighted on efficiency and comfort more so than budget because
efficient A/C units offer a quicker payback on your utility bills.
Leasing an A/C System ? It’s possible!
A more creative, yet more costly option in the long-run, would be to lease the A/C unit over a
ten-year period. However, what leasing offers is the ability for easy replacement. The idea is to
spread the lease over the useful life of the A/C system which is roughly 10 to 15 years. By
leasing the equipment, monthly payments are lower, but just like in the car business, often
require a down payment. Again, spreading the costs over the useful life of the system makes it
much more affordable to make payments on the A/C system. The benefits to homeowners
include an easy approval process and a limited amount of paperwork. It gives homeowners the
freedom to do things with their A/C system that they may not have done with cash or other
financing options such as getting a higher-end A/C unit. With the lower payments, a lot of
homeowners spend their additional disposable income on indoor air quality (IAQ) and duct
work. A fairly good leasing interest rate is 11.9%; that is still significantly less than most
people’s credit card interest rates.
Some people go the route of using a personal credit card to purchase their A/C unit. While
collecting credit reward points is great, this option is not advisable unless the consumer has the
cash available to pay the purchase off right away. Credit card interest rates are typically higher
than other A/C financing options. Using a credit card to make a large purchase can be
detrimental to your credit score. In reference to FICO, a reputable U.S. credit scoring company,
30% of your credit score is attributable to amounts owed on your account. Using a credit card is an option, but unless you are going to use it to collect the points and pay it off immediately, it is
not a good option.
Signature loans are loans that banks and other financial institutions offer as personal loans. These
personal loans can be used for a variety of reasons. A major advantage to using this type of loan
is it is a good faith loan/character loan which means you can buy and install your A/C unit
without having to put up your home or any other collateral with the exception of your good
name. It is very important to shop around the rates on signature loans because they can deviate
quite drastically. The beauty of a personal loan is it is generally a fixed rate over a fixed amount
of time so the payments are consistent. This is compatible for one-time home improvements such
as purchasing and installing a new A/C unit.
If you plan to do more home improvements beyond just an A/C purchase and installment, a
personal line of credit may not be a bad idea. A personal line of credit is kind of like a credit card
that a lender approves. The entire amount is approved at once, but the interest is only paid on the
amount that you actually use. Essentially, you are preapproved, but you draw the money in
increments as needed rather than the entire amount all at once. Interest rates on personal lines of
credit definitely vary and are dependent upon your credit worthiness. The payment on a personal
line of credit is structured like a credit card and is reported as revolving credit on your credit
There are a multitude of government programs that promote energy efficiency. There are plenty
of options for soldiers and veterans as well as options for lower to middle class household
incomes. These types of options require a simple Google search and a little bit of reading, but
could save you a lot of money.
The idea behind all of these is to show you that purchasing a new A/C unit can be affordable for
all different walks of life in the great state of Texas. We understand that purchasing a new A/C is
not an exciting purchase, but it is a quality of life purchase. We offer these blogs to you all
because we want people to have options. Options creates competition and competition creates
better pricing. At EcoZapp our customers are our neighbors and friends.
This article has no intended purpose of giving financial advise as you should consult a financial advisor for those type of transitions. This article is merely to cover a few points and possible ways in which we can assist homeowners with getting financing. All financing sources required Credit Approval determined by a 3rd party. If you have any questions on how we can help finance, or to see how much you may qualify for please contact us below