More often than not, a new air conditioning (AC) unit is more than just a modern convenience; it’s a necessity. And, you realize the importance of your HVAC system when your old AC unit breaks down in the middle of a scorching summer. Replacing it with a new one can be an expensive affair. So, unless you’re planning to dip into your savings, you may want to consider HVAC financing. 

If you want to know about the cost of a new AC unit or if you’re contemplating air conditioning financing, this guide will help you.

Investing in a good HVAC system can be one of the most important things a homeowner can do for the comfort of their home and for the maintenance of nearly everything in the house.  

Unfortunately, HVAC is also one of the more expensive home systems to maintain with basic units starting around $5k and larger capacity and/or more efficient systems easily running to $15k.

But, fortunately, HVAC financing — even HVAC financing with no credit check or HVAC financing with bad credit — is readily available.

How do people afford a new HVAC system?

Given that HVAC systems easily run between $5k and $15k, many families choose to finance their new AC and heating systems. There is a range of options for paying for your new HVAC systems, maintenance, and repairs. 

These include tapping into your savings, unsecured personal loans, credit cards, home equity loans, or home equity line of credit. 

Furthermore, some HVAC contractors are also able to provide their customers with a range of financing options. This is because they sometimes work with HVAC financing companies, have relationships with local banks, or work with on-line loan providers such as Kukun.

Looking for a home renovation loan for your HVAC replacement project? Peruse through Kukun’s easy loan options. 

Can you finance an AC system?

In short, yes, AC unit financing is readily available. There are a number of HVAC financing companies, including Kukun, which can provide financing not just for HVAC but for a wide variety of home maintenance or home improvement needs. And, the loan application process is easy too!

Read more: Home Remodel Financing Options: Best Way To Finance a Home Remodel

Should I finance my HVAC?

The decision to finance an HVAC system is a personal one for each individual family and primarily rests on whether or not they are able to pay for a $5-$15k expense out of pocket.

Financing your heating or cooling system will make your home improvement project easier to deal with. With set monthly installments, you can plan the renovation in a manageable way. The loan repayments can be spread out over 3, 5, 7, or even 10 years. 

The comfort and safety that AC and heating systems provide (as also other home systems such as plumbing, drainage, etc) is something that cannot be readily ignored. Keep in mind that your HVAC system will also help keep your plumbing system from freezing in winters. So, yes, financing the important home improvement is a smart move. 

Air conditioning (AC) unit financing

AC unit financing, or heating unit financing, can be explored in a matter of minutes with Kukun’s financing solution. The tool lets you find out the best loan options that are available. By answering just a couple of questions, a homeowner can obtain loan/financing options at no cost, with no obligation, and with no impact on their credit score.

If you’re specifically looking for a no credit check HVAC financing or an HVAC financing (bad credit), the best choice is to opt for an unsecured personal loan or an HVAC loan. You will need to be prepared for a higher interest rate and fees though.

What is an HVAC loan?

An HVAC loan — also sometimes referred to as an AC loan or heating loan — is a loan taken primarily to pay for replacing an HVAC system and typically features a fixed monthly payment option spread out over 3, 5, 7, or 10 years at a fixed interest rate.

This type of special financing can be a personal loan (not “secured” by the property), a home equity loan, or a HELOC (typically results in a lien on the property). Kukun lets you explore all of these from the comfort of your own home in minutes — with absolutely no impact on your credit score! 

How much does it usually cost to repair an AC unit in the United States?

Repairing an AC unit or a heating unit can run several hundred dollars. A typical HVAC repair costs between $150 and $450 on average — with most homeowners spending $320 on AC repair and $270 on furnace repair. Apart from this, most HVAC contractors charge an hourly fee of $75 to $150

The repair versus replace decision for a homeowner would generally include the age of the cooling or heating system, the type, and cost of repair, the anticipated effectiveness, durability of the repair, and the availability of financing.

Generally speaking, for older systems, replacement is a better idea. One might expect the frequency of repairs to continue to increase. Plus, newer HVAC units would offer a significant efficiency upgrade. Higher energy efficiency would ensure higher energy savings along with making your home much more comfortable.

Want to create a budget for replacing your home’s HVAC system? Kukun AC installation cost estimator is free, reliable, and quick!

Pros and cons of HVAC financing

HVAC financing comes with a variety of repayment durations/payments and terms. You can choose the best financing program based on the most favorable repayment plan, lowest rates, APR as well as terms and conditions.

Although paying cash upfront — instead of a loan — for a system repair or upgrade would not burden your home finances with any additional monthly payment but it might also result in less flexibility to use your saved funds for other purposes.

Considering HVAC financing can help you plan your home improvement better and on time.

Financing does come with its risk. You cannot afford to miss a repayment deadline. Keep in mind that if you default on your loan repayments, it can adversely affect your credit score and credit rating. And, may even cost you your home if it’s a home equity loan. 

However, if you manage your finances and loans well, you can breathe easy. The right HVAC loan will take care of your home comfort system, and your pocket. 

HVAC Financing For Good & Bad Credit was last modified: December 18th, 2020 by Ramona Sinha