Most people tend to think that financing should only be considered if there is an urgent need for something and the funds aren’t available, or if there is an outstanding option to finance with very good terms, or very little interest, or both. Custom Climates has put a lot of effort into finding the best financing plans available for the home HVAC product consumer.
What benefit does financing a system have?
There are really two main benefits of financing a new heating and cooling system. Option 1: our savings in operating costs from the more expensive unit offset the payments if the additional cost of the better system is financed. Option 2: we spend a little more for the first 5-7 years but afterward, there are substantial savings that go straight back into our pockets, turning this purchase into an investment rather than a maintenance cost. Although many other benefits may exist for different circumstances and different people, we find that these are the two that are most common for our customers. Upon approval, Custom Climates customers get to choose from several different financing plans that can make the purchasing of a new heating and cooling system very easy and simple.
In New Hampshire we don’t have a choice but to heat our homes, it is a necessity. If we really wanted to save money, turning off our heating systems for the season would likely not be a good option. So with that comes the understanding that we will be spending money regardless of what system is in our homes. We find that our customers generally choose a much more efficient option after having a discussion with us. That discussion basically explains that in many cases, when a piece of equipment is upgraded to the most efficient option we have, the savings can be between 30-50% from what they are spending now. When a customer is forced to replace the system they have because it is at the end of life, they have a choice to maintain the home (which means replacing the equipment with the same type and efficiency) or they can upgrade and spend a little more to have an investment with a potential ROI and better comfort to enjoy.
– Mrs. Smith needs to replace her home furnace because it has failed, the furnace and AC equipment are both 15 years old, so the AC is likely near the end of life for the equipment.
– Mrs. Smith currently spends $3,600.00 per year on heating and cooling utility operating costs.
– A new furnace and AC that has the same efficiencies, operations, and controls as the existing system may cost around $12,000.00 (using easy numbers, not to be used as a quote)
– A complete Mitsubishi whole house heat pump system may be somewhere near $20,000.00 to have installed. This Mitsubishi option provides heating and cooling for the entire home, however, it operates at a savings compared to the existing equipment of 40% and offers more control and comfort than the existing system.
Mrs. Smith can spend $12,000.00 to maintain the house and continue as she always has, spending around $3600 per year to heat and cool the home. Or she can spend an additional $10,000.00 now and save around $120.00 per month on utility costs from operating at a much higher efficiency. If Mrs. Smith chooses to make a deposit of $12,000 on the Mitsubishi system, then finance the remaining $10,000.00 using the longest-term plan that Custom Climates offers, it would amount to a $125.00 per month payment. So Mrs. Smith can spend the same amount of money she would be spending, and get much better equipment with far more control over the comfort of the home.
Mrs. Smith can finance the entire amount of the new Mitsubishi whole home heat pump, with savings of 40% off the $3600 she normally spends and have far more control and comfort of the home, and with the 0% apr and 60 months of payments her monthly payment would be about $333.00. If Mrs. Smith had just maintained the house and replaced the system like for like, over the course of 5 years she would have spent the $12,000.00 for the replacement plus an additional $18,000.00 in operating costs for a total of $30,000.00. While during that same time if she went with option 2 described here, she would have spent the $20,000.00 for the new system and only $10,800.00 in operating costs for a total of $30,800.00
With this second example, the real question you need to ask yourself is this.
In 5-7 years you will likely have spent the same amount of money regardless of the system you choose. So in 5-7 years what equipment would you rather have in your home?
To most of our customers it is clear that they would prefer to have a more efficient system, because after that 5-7 years it is just savings and return on the investment moving forward. And part of that investment and the better system is of course the added control and comfort of the Mitsubishi whole home heat pump.