Purchasing and installing new heating or cooling equipment can be costly and requires many homeowners to get creative with how they might finance it. In America, the average HVAC replacement costs range from $2,600 to $7,700, depending on what type and size of system is required, the equipment brand, whether new or additional ductwork is needed, and other factors.
There are quite a few financing options available for homeowners looking to upgrade or replace their systems, and most come with their own set of pros and cons. Let’s examine ways our valued clients most often fund their furnace or air conditioning installations.
In 2020, most Americans received stimulus money after the coronavirus pandemic temporarily shut down operation of non-essential business, leaving lots of people without steady employment. Some were able to save that stimulus check, instead of spending it right away on necessities.
The stimulus check, any tax refund money you may have received for the 2019 tax year, and other cash in your savings account are great candidates to use to fund the installation and purchase of your new air conditioner, furnace, boiler, or heat pump.
The downside to using these monies is that it is unlikely the total amount you received from taxes will cover all of what you may owe, including the purchase price of the equipment, and charges for parts, labor, and removing your old equipment. Some people also may have to deplete their savings, which can take years to rebuild. The upside is that if you can pay in-full for your new equipment this way, you will not have to take on any debt. Paying in cash is a viable option for some people, but it may not be for everyone.
Traditional lenders and financial institutions have personal loan programs in place for purchases just like these. For a relatively low interest rate, your bank or credit union could lend you enough money to pay for brand-new HVAC equipment installation in St. Louis, by Meyer Heating and Air. Then, you’ll make monthly payments to pay back the loan to a lender you already know and trust. The monthly payment will be the same amount per month for the duration of the loan.
However, qualifying for a personal loan requires you to have a good credit score, and you may not be approved if your debt-to-income ratio is above the lender’s preferred percentage. You’ll also be paying extra over time in loan interest, which can add up to extra thousands of dollars, depending on the interest rate you are approved to get and any loan origination fees you may be required to pay for. Check with your lender of choice to learn more about their loan offerings.
According to the U.S. Census Bureau, 70 percent of American households, or 138 million individuals, have access to general-purpose credit cards, like those from Visa, MasterCard, or Discover. Credit cards are often used to pay for unexpected expenses, and having to replace your entire HVAC system can certainly fall into that category.
Using a credit card to pay for your equipment and installation can be convenient, and doing so allows you to pay back the cost slowly over time, making as little as your monthly minimum payment toward your credit card bill, or making extra payments each month. However, with the average credit card interest rate at 18.61 percent in the United States, you can expect to pay back much more than the actual cost to buy and install the equipment. There are far less expensive options available to pay for your purchase.
How you pay for your new heating and cooling equipment is a personal decision. As the homeowner, you will need to weigh the pros and cons of each of your payment options to determine the best route for you. Not everyone’s circumstances are identical.
However, Meyer Heating and Air has another financing option that we think is the best choice for most of our valued clients. We offer promotional financing on new equipment purchases and installation through Synchrony, a consumer financial services company. We work with Synchrony because of their lengthy history of excellence in consumer credit; they’ve been around since 1932.
When you finance with us through Synchrony, we can offer you as little as zero percent interest for 60 months (that’s five years!) on our platinum and gold systems, with very reasonable interest rates for other tiers. We allow you to finance the full amount, including equipment, installation, and labor, on purchases as little as $1,500.
With zero percent interest, you will never pay more than the purchase price and installation cost of the equipment, like you would with a personal loan or credit card. Taking advantage of our partnership with Synchrony can save you money. Synchrony quickly provides your financing, which saves you the time it takes to contact traditional lenders and apply for personal loans. You can even apply online through our website.
You can trust Meyer Heating and Air with all your heating and cooling needs. We’re a family-owned business with more than 30 years of combined experience working on HVAC systems. Our customer-focused philosophy gets your home back to being comfortable as quickly as possible, whether we’re repairing your existing equipment, doing an inspection and tune-up, or helping you upgrade your air conditioner or heating.
Our professional team serves both residential and commercial clients in the St. Louis metropolitan area, including Arnold, Fenton, St. Charles, Ballwin, Chesterfield, and Sappington. Our clients call us every time they need our help, because they know we deliver consistent results at an affordable price.
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