Spring has arrived. You walk over to your thermostat and it won’t turn on, or maybe you’re just ready to make an energy efficiency change in your home. The cost of installing a new air conditioning unit can cost more than people expect. The price will vary depending on the size of your home and the type of unit you choose to install. Many people are left wondering how they will pay for the new installation. We here at Long Heating and Cooling have put together some options for ways to finance your next air conditioning system.

  • Cash: When paying for a new a/c unit, cash is a quick way to pay down the appliance and not have to worry about it in the future. If you have the money on hand, you can avoid interest or other fees that come along with other types of financing. One thing to keep in mind is that you can usually borrow money at a lower interest rate than you can earn on the money you invest. In this scenario, it’s cheaper to take a loan than to pay cash.
  • Credit Card: As with most big purchases, credit cards can be a helpful tool for purchasing items when the money isn’t sitting in the bank. Cards that offer a low interest rate or an introductory 0% APR on purchases will help you keep additional fees to a minimum, especially if you’re diligent about payments and you’re able to pay down the balance of the card before the due date. Another added benefit can be perks like travel rewards or cashback offers presented by banks. Just make sure you understand the terms and payment conditions of the card so you avoid late fees and penalties.
  • Personal Loan: A personal loan is an unsecured loan that can help you get cash quickly. Unlike secured loans, which use assets or property as collateral, personal loans don’t impact your home equity or put your property at risk. These kinds of loans have higher interest rates because they involve more risk for the lender.
  • Home Equity Loan: These types of loans are backed by your property, and typically have lower rates than other financing options. Similar to a mortgage, borrowers receive a lump sum of cash which is repaid to the lender in installments over the life of the loan. Additionally, if you choose to finance your unit through a home equity loan, the purchase might be tax-deductible since it is being used to improve the property. You put your property at risk if you aren’t able to repay what you owe, so carefully consider the value of your home against your ability to pay back the loan.
  • Contractor Financing: Some contractors offer to finance with a lender they have a relationship with. The contractor, lender, and borrower all get to enjoy the benefits of this arrangement. This is a quick and easy option if you already have a contractor that you’ve worked with before. Just make sure you read all of the fine print and read all of the contracts to make sure you don’t get scammed. High rates and fees can come back to surprise homeowners after they’ve already signed the contract.

In Closing

If your air conditioning unit is on the decline or you’ve been surprised by a sudden breakdown, we here at Long Heating and Cooling can help. We specialize in a/c unit sales and installation services and can help you find the right option for your home. We also offer 0% financing terms with minimum payments through Synchrony Financial. Click here for our financing page or go to ‘Financing’ on the menu.