You have options when buying a new AC system...
Well time has come, the Credit Card act took place on Feb 22. You can read a good article on this on Foxbussiness
How will this (credit slam down) affect the air conditioning market in purchases? I’m not sure, but using credit gimmicks is never one of our options for our customers! There is a reason why the government created this credit card act and that is because what looked good today would not be good for you tomorrow!!
I’ve looked and reviewed credit options, I thought I would just fix, repair, sell and install Air Conditioning Systems to help my customers but it’s just not about selling it’s about a long term commitment I form with my customer. With that commitment I want the best affordable way my customers can pay for their air conditioning system if they should have to borrow from a lender.
So let’s break it down, Let use the $5000 Tax credit figure:
1. My first choice is your own bank, maybe a second mortgage or equity loan.
You may find a rate around 5% to 9% interest rate.
2. Another option is to look for a promotional credit card that has a fair APR after the promotion is over. A third is a low interest rate credit card if you have great credit.
3. Then finally there is GE financing that many Air Conditioning Contractors offer their customers. Another thing GE has a finance fee on the total price. Because of this you can expect an additional $500 for a $5000 purchase. With that you get a 7.99% interest rate for 60 months which actually pans itself out over the 5 year loan.
So Let’s break it down side by side: $5000 purchase with a 60 month equal payment method
Great Credit at 7.5% = $99.60 a monthGood low Credit Card at 12% = $111.22 a month
National Average Credit Card Rate 14.14% = $116.70 a month
GE Finance: GE service fee of $503 we need to add to the $5000 So Financing would be a total of $5503 at 7.99% for 60 months. = $111.55 a month
Now if you subtract your Tax credit and then monthly savings in utilities you can see real value with purchasing a new Central Heating and Air System!!
Before you buy, remember to look at how you buy. Buy and Pay Smart so you can Save Big!
Prices may vary ~ a $5000 loan was used to see differences.
Just a thought:
Now WHAT IF THE GOVERNMENT actually thought out the stimulus plan? What if there was a Credit loan Plan of 3% interest on energy savings home improvement items. Then you would be looking around $89.84 a month on a $5000 loan!
Now some more interesting facts, if the Government would have budgeted 200 billion of the 800 billion dollars they wasted in the stimulus package, Using this 3% concept, would help 40 million homes and generate a 16 billion dollar profit! So not only (we the consumer home owner) would have a new central heating and air system that would save monthly on our utilities and cost us $10 less a month then the lowest interest rate Nationally offered Visa Card, the Government would make 16 BILLION DOLLARS off of the interest in that 5 years!! (Roughly $400 interest per $5000 loan)
How will this (credit slam down) affect the air conditioning market in purchases? I’m not sure, but using credit gimmicks is never one of our options for our customers! There is a reason why the government created this credit card act and that is because what looked good today would not be good for you tomorrow!!
I’ve looked and reviewed credit options, I thought I would just fix, repair, sell and install Air Conditioning Systems to help my customers but it’s just not about selling it’s about a long term commitment I form with my customer. With that commitment I want the best affordable way my customers can pay for their air conditioning system if they should have to borrow from a lender.
So let’s break it down, Let use the $5000 Tax credit figure:
1. My first choice is your own bank, maybe a second mortgage or equity loan.
You may find a rate around 5% to 9% interest rate.
2. Another option is to look for a promotional credit card that has a fair APR after the promotion is over. A third is a low interest rate credit card if you have great credit.
3. Then finally there is GE financing that many Air Conditioning Contractors offer their customers. Another thing GE has a finance fee on the total price. Because of this you can expect an additional $500 for a $5000 purchase. With that you get a 7.99% interest rate for 60 months which actually pans itself out over the 5 year loan.
So Let’s break it down side by side: $5000 purchase with a 60 month equal payment method
Great Credit at 7.5% = $99.60 a monthGood low Credit Card at 12% = $111.22 a month
National Average Credit Card Rate 14.14% = $116.70 a month
GE Finance: GE service fee of $503 we need to add to the $5000 So Financing would be a total of $5503 at 7.99% for 60 months. = $111.55 a month
Now if you subtract your Tax credit and then monthly savings in utilities you can see real value with purchasing a new Central Heating and Air System!!
Before you buy, remember to look at how you buy. Buy and Pay Smart so you can Save Big!
Prices may vary ~ a $5000 loan was used to see differences.
Just a thought:
Now WHAT IF THE GOVERNMENT actually thought out the stimulus plan? What if there was a Credit loan Plan of 3% interest on energy savings home improvement items. Then you would be looking around $89.84 a month on a $5000 loan!
Now some more interesting facts, if the Government would have budgeted 200 billion of the 800 billion dollars they wasted in the stimulus package, Using this 3% concept, would help 40 million homes and generate a 16 billion dollar profit! So not only (we the consumer home owner) would have a new central heating and air system that would save monthly on our utilities and cost us $10 less a month then the lowest interest rate Nationally offered Visa Card, the Government would make 16 BILLION DOLLARS off of the interest in that 5 years!! (Roughly $400 interest per $5000 loan)
Schwenn Services accepts cash, checks and credit cards and we also offer financing. Call today 407-895-7550 to find out if you qualify.
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