Air Conditioning Financing
Lack of information about how to buy and finance air conditioning systems is one of the biggest reasons many people wait too long to upgrade their HVAC equipment.
It’s never far from people’s minds this time of year, when a long, hot North Texas summer is ready to pounce and pummel us to submission. If the old AC can just hang in there a few months more, we’ll be OK – right?
The truth is, you probably can get another season from your HVAC equipment, even if it’s past the 7-10 year lifespan common for AC equipment here. Repair costs could be more than you might like, but isn’t that better than the cost of all new equipment?
Not necessarily. Today’s high efficiency equipment reduces operating costs so much you will greatly offset the purchase price, and maybe even pocket some extra money! Attractive financing rates available through the HVAC service company make it very doable.
High Efficiency Equipment Saves Big Money
AC efficiency is rated in terms of SEER (Seasonal Energy Efficiency Ratio), as defined by the Air Conditioning, Heating, and Refrigeration Institute. The higher the SEER rating, the more efficient the equipment.
Let’s say you are replacing an old 10 SEER unit with new high-efficiency equipment. The minimum SEER value of new equipment is 13, but for a little extra investment, 16 SEER is a better value because it will save you twice as much on your electric bills, as this chart shows.
10 SEER Existing Air Conditioner Efficiency
If your current equipment is rated 12 or 13 SEER and it is 6-8 years old or older, chances are great it isn’t operating at its rated level. A 10 SEER actual performance level is more likely.
And if your current AC system was rated at 10 SEER when new, 8 SEER performance, or less, is more likely. This chart shows expected efficiency improvements by upgrading from 8 SEER:
8 SEER Existing Air Conditioner Efficiency
Do the Math
Let’s take a conservative approach and say you are getting 10 SEER performance now and you want to upgrade to 16 SEER. If your average monthly electricity bill is $160 (a bit lower than the Texas average) and your projected savings is 38% you stand to cut $61 from your monthly bill, chopping it down to $99 per month.
Now, let’s say you buy a 3 ton, 16 SEER complete system (central air and central heat, including installation) at our currently offered price of $4,551. If you use a home equity or home improvement loan for 72 months at 5% your monthly payment would be $79, which would be nearly offset by your lower electric bills. You would be out of pocket an additional 67 cents per day ($20 ÷ 30days)!
If you have an older 10 SEER-rated system that is actually working at an 8 SEER level because of age, the difference is even greater. The 50% boost in efficiency makes for a projected savings of $80 each month from your $160 electric bill. At this point, you are spending the same each month to cool your home, but you are investing in your home instead of the electric company and reducing air pollution!
Bargain Rates May Be Available
Many home equity and home improvement loans offer rates below 5%, and most air conditioning contractors offer financing specials supported by manufacturer and bank promotions. Often, 0% packages are available.
There’s no getting around the fact that air conditioning and heating equipment is a substantial investment. It costs thousands of dollars. If you can pay for such home improvements with cash you deserve congratulations. Most of us have to spread the payments out over time.
If the difference in total monthly cash outlay is plus or minus a few dollars each month, doesn’t it make more sense to have the comfort and reliability of new high-efficiency air conditioning equipment and not have to worry about repairs for a long time to come?
Call Mascot Mechanical today at 469 -854-5608 or contact us online for more information about central air conditioning and heating systems and the very attractive financing solutions available.