How to Finance a New AC Unit

Whether it’s the middle of summer or the dead of winter, you want to make sure your home has cool, clean, comfortable air year-round. However, the cost of installing a new air conditioning unit when yours stops working can be a huge chunk of change. The price will vary depending on the size of your home and the type of unit you choose to install, but many people are still left wondering how they will pay for the new installment. Here are some options for ways to finance an AC unit with your budget. 

When Do You Need a New AC Unit?

The first question to ask yourself is whether it’s time to replace your AC unit or not. Regular maintenance can significantly extend the lifespan of the unit, but every appliance reaches the end of its functionality at some point. The age of your AC unit is one of the first factors to consider when assessing when you need to start shopping around. Energy efficiency is also an important aspect. While an air conditioner might still be in use, it might be sucking up more energy than it needs to, causing your bill to rise to unnecessary heights. 

To gauge the condition of your existing HVAC unit, you should contact a professional service that will be able to recommend the right model for your home and your needs. 


Paying for a new AC unit in cash is a quick way to pay down the appliance and not have to worry about it in the future, but it’s also the riskiest payment method. If you have the money on hand, you can avoid interest or other fees that come along with other types of financing, but you’ll have to be very careful. 

Cash-based scams are unfortunately common and once the money is gone without a clear paper trail, there’s no way to get it back. In general, homeowners can expect more protection and more benefits by using other financing means. 

Credit Card

As with most big homeownership purchases, credit cards can be a helpful tool for securing essential 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 like Wells Fargo financing. Just make sure you clearly understand the terms and payment conditions of the card to avoid late fees and expensive penalties in the future. 

Personal Loan

A personal loan is an unsecured loan that can help people get cash in just a few days. This can come in handy if your AC unit breaks unexpectedly and you need a quick solution. Unlike secured loans, which use assets or property as collateral, personal loans don’t impact your home equity or put your property at risk if you’re in danger of defaulting. However, these types of loans are much more risky for the lender, which is why the interest rates are typically higher and can come with origination fees. 

Home Equity Loan

Another means of securing the funds for a new HVAC unit is known as a home equity loan. These types of loans are backed by your property which means they have lower rates than other financing options. Similar to a mortgage, borrowers get a lump sum of cash which is repaid to the lender in installments over the life of the loan. 

Additionally, if you chose to finance your unit through a home equity loan, the purchase might be tax-deductible since its being used to improve the property. The risk is that you put your property at risk if you aren’t able to repay what you owe, so it’s essential to carefully consider the value of your home against your ability to pay back the loan within the loan timeframe. 

Contractor Financing 

The final option for HVAC financing is to consider contractor financing. Some contractors might offer to arrange financing with a specific lender that they have a relationship with. In this structure, the contractor, lender, and borrower all get to enjoy the benefits of the arrangement. This is a great option f you already have a contractor that you’ve worked with before and trust with your home. However, if you don’t already have a solid relationship with the contractor, make sure you read all of the fine print and read all of the contracts to make sure you don’t get scammed. 

Exorbitant rates and fees can fly under the radar and come back to surprise homeowners after they’ve already signed the contract. 

If your air conditioning unit is on the decline or you’ve been surprised by a sudden breakdown, our experts at Global A/C can help. We specialize in AC unit sales and installation services can help you find the right option to finance your AC unit. 

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