How to Pay for an HVAC System During Summer Months

How Do People Pay for Air Conditioners?

On a hot summer day, there is nothing more relieving than stepping inside and feeling a blast of cool AC. Not only can an air conditioning unit cool your home, but there are a variety of health benefits associated with AC as well. Some of these benefits include: 

• Improved air quality

• A reduction in asthma attacks

• Improved sleep

Most individuals who do not have AC, don’t lack this appliance by choice. One of the top reasons why a household would not have air conditioning is due to the cost. According to a recent study by Forbes, the average central AC unit costs around $5,900. In addition to the unit cost, households can also spend between $3,600 and $8,200 to have these units installed. 

If you are without AC, the good news is that there are ways for people to pay for air conditioners. If you are looking to invest in an air conditioning unit, consider the following options: 

1. Outright Purchase: If you have the capacity to pay for this outright, this can be better than putting the purchase on a credit card. Outright purchasing avoids interest charges that can add up significantly with credit cards. However, it can be difficult to have $10,000 readily at your disposal. 
2. Retailer Financing: Check with the retailer and manufacturer where you purchase your unit and see if they offer any financing options. Some stores will run specials where they offer 0% financing for a certain amount of time. Capitalize on these! 
3. A HELOC: A Home Equity Line of Credit, or  HELOC, is a loan in which you can borrow against the equity of your home, similar to how you might use car title loans for vehicle equity financing. With this type of loan, you must have available equity in your loan. Typically, you can borrow up to 85% of the equity that you have invested.
4. A Personal Loan: You may also want to consider a personal loan through your bank or credit union. While these types of loans typically have lower interest rates than credit cards, they can have strict qualification requirements and often require a higher credit score. 

By evaluating your own individual financial situation and through careful review of your budget, you can determine the financing option that is best for you! 

When is the best time of year to buy HVAC?

It is typically the most affordable to buy an HVAC unit during the off season. During this time, demand is lower and you may be able to find good deals! While it is important to carefully consider all financing options, timing your purchase is also important. 

It is best practice to position yourself so that you are not in a situation where you have no choice but to purchase a unit. For example, if your heating goes out in the middle of the winter when temperatures are below freezing, you will have no choice but to buy a new unit -and quickly! These are the times that companies can also take advantage of these tight situations. 

On a similar note, consider purchasing a unit around holiday sales. Many companies have sales during major holidays. Typically Memorial Day, Labor Day and Black Friday are substantial shopping events that can draw crowds. During this time, many retailers may offer significant discounts that can save you money in the long run! 

Should I pay cash for HVAC or finance?

Financing a more energy efficient HVAC unit can help you save more money in the long run! An updated, more energy efficient HVAC unit is going to cost you thousands of dollars more. However, according to the U.S. Department of Energy, a more energy efficient HVAC system can help to reduce your monthly utility bill anywhere from 20-40%. This savings will save you a significant amount of money over time! 

Not only are you saving money and helping your own wealth grow, you are also positively impacting the environment! This increased efficiency can help to lower greenhouse gas, reduce your carbon footprint and help to decrease overall pollutants in the air! 

Do AC Prices Go Up in the Summer?

As temperatures climb in the summer months, so do air conditioning prices! AC prices tend to increase during the summer months due to several reasons. Some of these reasons include: 

• Overall demand: Per the rules of supply and demand, as the summer months heat up, so do AC prices. In addition, individuals who are in tight spots (such as those who have broken AC units in July) have no choice but to purchase a new unit on the spot. Retailers typically capitalize on this need for their goods and services. 
• Higher temps: Even those who already own an air conditioner can attest to the fact that as the summer months progress, the higher temperatures lead to higher electric bills. As temperatures increase, air conditioning units need to work double time in order to cool the space inside your home. 
• Manufacturer price increase: Not only do manufacturers take advantage of the summer months, they also tend to increase their prices each year! 

How Can I Plan to Purchase an HVAC System During Summer Months?

If you are looking to be proactive and plan ahead, there are actionable steps that you can take to purchase an HVAC system during summer months. If you need to plan ahead for a big purchase, consider: 

• Goal Setting: By looking ahead and determining just how much you need, you can set a goal for how much you need to set aside. Try setting goals as far out as possible. The more time that you have, the less dramatically you need to alter your budget. It is perfectly OK to have both long and short term savings goals. 
• Create a Savings Plan: After you know how much you need to save, decide how much you can set aside each month. Consider different ways to alter your budget. Tighten up on monthly subscriptions and find ways to eliminate unnecessary expenses. If your budget is already stretched thin, consider incorporating new ways to make money and earn additional income! A small side gig, even part time, can help you earn extra cash to set aside for big purchases. 
• Monitor Progress: It is important not only to make these goals, but to hold yourself accountable as well! Monitoring your progress can be another great way to keep yourself motivated. As you see your savings grow, you may find yourself even more motivated to save. 

By following these easy-to-implement steps, you can find the room in your budget to purchase an HVAC system (even in the summer) that can help to improve your overall quality of life! 

Choice Home Warranty George Foreman in 2024