What Type of HVAC Financing Plans Are Available?

0% Financing Is a Popular Option for Many Homeowners

Is your HVAC system on the verge of breaking down? If so, you may be worried about how you’ll afford a replacement. A new HVAC system is a big expense, after all, and most homeowners don’t have thousands set aside to cover it upfront.

That’s where HVAC financing comes in. Many reputable HVAC companies partner with third-party lenders to offer in-house financing. These plans allow you to break the total cost of a new heating and cooling unit into manageable monthly payments.

Keep reading as we explore how HVAC financing works, the different types of payment plans available, and whether a 0% financing offer might be available for you.

What Is HVAC Financing?

HVAC financing is typically offered when you buy a new system like a furnace, heat pump, or air conditioner. It lets you spread the cost over time with fixed monthly payments.

Loan terms usually range from 6 months to 10 years, depending on the lender and your credit score. Most HVAC companies work with financing providers such as Wells Fargo, Synchrony, or Ally, while some may even offer in-house plans.

How Does HVAC Financing Work?

Not surprisingly, one of the first things many homeowners ask during an HVAC consultation is, “Do you offer financing?” Financing usually comes up during your estimate or sales visit. Once the technician or comfort advisor recommends the right system for your home and gives you a quote, they’ll go over your payment options. If financing is available, they’ll guide you through the application, either with a paper form, on a tablet, or through a secure online portal.

The application is usually quick and easy, often taking just a few minutes. You’ll typically be asked to provide your income, address, and Social Security number so the lender can run a soft credit check. If you’re approved, your financing terms and monthly payment options will appear almost instantly.

In most cases, you can finance the full cost of the job, including the system itself, installation, labor, and even extras like extended warranties or maintenance plans. Once you agree to the terms, the lender pays the HVAC company, and you start making monthly payments based on your selected plan.

What Kind of Financing Terms Are Usually Offered?

Most HVAC companies offer various plans suited to different budgets and credit scores. One of the most popular is 0% interest financing, which is typically available to homeowners with good or excellent credit. These are often advertised as “same as cash” offers, which let you spread payments over a fixed period – usually 6, 12, or 18 months – without paying any interest, as long as the balance is paid off in full by the end of the promo period.

For example, if your new system costs $8,000 and you’re approved for a 12-month 0% interest plan, your monthly payment would be about $667. However, if you don’t pay the full balance by the deadline, retroactive interest may be charged, usually back to the purchase date.

If you need more time to pay off your new HVAC system or don’t qualify for 0% offers, many lenders also provide standard installment loans with fixed interest rates. These loans typically last 3 to 10 years, with interest rates ranging from 6.99% to 14.99%, depending on your credit and the lender. You’ll make equal payments throughout the loan term. For instance, a $10,000 system financed over 7 years at 9.99% would cost about $150 per month, with roughly $2,600 paid in interest over the life of the loan.

Tips for Finding the Right HVAC Financing Plan

You don’t need to be a finance expert to make a smart decision. Here are a few tips:

• Shop around: Get quotes from a few HVAC companies, as rates and terms can vary.
• Look for incentives: Check with your local utility or government for rebates or energy-efficiency programs that can reduce the amount of your loan.
• Stay within budget: Choose a monthly payment you can comfortably afford, even if it means a longer loan term.
• Ask questions: A trustworthy HVAC company will take the time to explain your options clearly and without using pressure tactics.