One option is a payment plan through an AC financing company. With this plan, you can break the cost of the HVAC system into monthly payments that fit your budget. This option may not require a down payment, and you may be able to get a low-interest rate. Another option is a home equity loan.
Personal Loans and Home Improvement Loans from Your Bank
Some financial institutions offer home improvement loans specifically for purchasing new HVAC systems. These loans typically have lower interest rates and longer repayment terms than personal loans.
The $5,000 rule is an industry-accepted rule for determining whether to repair or replace an HVAC system. Multiply the age of your equipment by its estimated repair cost. If the outcome is under $5,000, you should probably repair it. If over $5,000, you should replace it.
HELOC is probably your best bet, unless you have some zero-balance credit cards that are offering a 0% for 12 or 18 months deal. They'll charge a transaction fee of 3 to 5%, but 3 to 5% isn't bad for up to 18 months financing on your AC. That would give you plenty of time to line up the heloc.
Replacing a HVAC system can involve one or both, and it makes a difference, price-wise. According to HomeGuide.com, the average cost to replace the HVAC units is $5,000 to $11,000; to replace the units with ductwork runs between $7,000 and $16,000 in total.
Homeowners insurance covers HVAC systems when the damage is a result of a covered disaster or peril, including high winds, fallen trees, theft, hail or even a fire. So if lightning strikes your unit and damages its electrical components, your homeowners insurance policy would probably cover it.
The global rise in fuel and energy prices has also increased the cost of manufacturing and transporting HVAC equipment, thus driving up HVAC prices for consumers. Changing environmental regulations also push the market towards newer, more expensive products as manufacturers work to comply with evolving standards.
Depending on normal weather patterns, the best time to buy an air conditioner is in the Spring (March and April) and the best time to install a new furnace is in the fall (September and October).
There are 4 main options for AC financing or HVAC system financing: a personal loan, a home equity loan, a HELOC, and HVAC financing through your local Trane dealer. For all of these options, you can reduce the amount of the loan or the credit card balance if you can make a down payment.
Final Recommendations. Financing an HVAC installation can be a smart decision under the right conditions. You can take advantage of the loan to purchase equipment with a higher efficiency, and energy savings will help cover the debt over time. HVAC financing works best if you have a low-interest option such as a HELOC.
The Inflation Reduction Act (IRA), effective through 2032, offers annual tax credits up to $2,000 for ENERGY STAR-certified heat pumps and other high-efficiency HVAC systems. This recurring credit can be claimed each year that eligible improvements are made.
On average, you can only expect about 15 years of reliable service from a central AC system. And that's only if you maintain your system well. So, if your home has an AC that's 20 years old or older, it's likely living on borrowed time. Here are all the reasons to replace your home's 20-year-old air conditioner.
Usually, it is a quick fix, but sometimes the failure can be caused by a much bigger problem. The most expensive part of an AC unit to replace and repair is the air compressor.
Give them a little time to come up with it, but normally the price you'll get back is the lowest price they are willing to do it for. It may not be the lowest price out of all the quotes you receive, but better contractors know their value and know their cost structure and won't give away their work.
Costco is a great retailer and has put more resources into the HVAC category. Lennox and Costco have partnered so Lennox is the exclusive HVAC Brand offered by Costco.
One option is a payment plan through an AC financing company. With this plan, you can break the cost of the HVAC system into monthly payments that fit your budget. This option may not require a down payment, and you may be able to get a low-interest rate. Another option is a home equity loan.
HVAC and home insurance
A homeowners policy may cover your HVAC in two ways: either through the dwelling coverage or the personal property coverage on your policy. Dwelling coverage may help pay to repair or replace a built-in unit since it's considered part of the home's structure.
Federal Tax Credits
The Inflation Reduction Act (IRA) of 2022 makes tax credits available on high-efficiency HVAC units through 2032. It allows you to deduct 30 percent of the purchase and installation costs and caps the amount you can write off: Air conditioners, furnaces, boilers, and water heaters max out at $600.
The cost of replacing an HVAC system typically ranges from $6,224 to $11,434. This HVAC replacement cost depends on your home's size, the system type, and installation requirements. The estimate includes both a central air conditioning unit and a gas furnace, along with standard labor costs.
In general, most HVAC systems will last 15 to 25 years, but depending on the type of system and other contributing factors, that estimate can be highly variable. Even with HVAC maintenance and regular repairs, eventually, even the best boilers, furnaces, heat pumps, and air conditioners today will run their course.
The 2025 refrigerant transition refers to the new regulations requiring the use of more environmentally friendly refrigerants in HVAC systems. The aim is to reduce greenhouse gas emissions and ozone depletion.
Several HVAC manufacturers have officially declared upcoming price hikes for 2024, garnering attention as a new wave of increases takes effect. There is a noticeable industry-wide trend of manufacturers elevating the prices of equipment, parts, and supplies.
Dirty Filters
Perhaps the most common of all HVAC problems, and one that is easily fixed, is a dirty filter. Dirty filters will block airflow and cause your furnace to work harder to maintain an ideal temperature. This overburdens the unit, which could cause overheating, premature wear, and HVAC airflow problems.