The heating and air conditioning system is the third most expensive system for most people following their house and car. Because of this, quite a few of our customers choose to finance their systems much like they would their car.
While Weldon Heating and Air does not finance systems, but we have quite a few partners that do.
From awesome credit to very troubled, lenders are usually out there that can help.
Matts Thoughts On Financing
Once upon a time, I was in the lending business. I was a partner, and Chief Technical Officer (CTO) for a company that was the 77th fastest growing company in America, 7th in the financial category. Needless to say, financing is something I know something about. (I am also a licensed Property and Casualty insurance agent in the state of Georgia, but that’s another story)
It’s About Advertising
As we all drive around 285, we see the signs, “ZERO PERCENT THIS”, “FREE THAT”. Folks, it just ain’t true. If someone is giving “Free” interest, let me tell you how it works. The air conditioning company has to pay a fee, sometimes as much as 20 percent. and they build that into the cost of the unit. You may think “What’s the big deal?”.
It’s a Guarantee They Will Make Money
Let me explain it this way. With EnerBank for example, the TIL or “Traditional Interest (sometimes Installment) Loan” that we offer has no prepayment penalty. That means if you pay it off early, you only pay interest for the time you used their money. If you go with one of the enticing “NO INTEREST” or “Zero Percent Interest For X”, you are only guaranteeing that they are going to get the full amount of interest UP FRONT!
Why The Simple Truth Is A Better Way To Go
With a traditional interest loan, it is simple interest, no prepayment penalty and is just an honest assessment of what your costs are. Unlike a car, which is a “secured loan”, meaning if you don’t pay for it, they will come get it, they are not coming for your AC unit. Therefore, it is considered a “Signature Loan” and the higher interest rate reflects the added risk that the lender is taking.
Remember, that is someones money, they had to save it up, and they are risking it so you can be comfortable. Unsecured loans usually run between 8 and 16 percent interest.