Heat Up Your Bottom Line: Why Lease-to-Own Financing is the Hot Ticket for HVAC Contractors

Arevalo says that lease-to-own is obviously not for every customer. “The guy with the 800 credit score is probably not going to go with the lease-to-own option because he has other alternatives. But, if a person doesn’t have the cash or credit score, then it may be a different story.

“We like to say lease-to-own helps bridge the gap in the HVAC world,” he adds. “We get a lot of feedback from our contractors telling us, ‘I’ve spent two to three hours at the customer’s home, and when it comes down to it, we try two to three different finance options, and they still get denied.’ You’ve invested all this time with the customer and you still don’t have a solution. That’s where we try to bridge the gap — we want to push it to the finish line.”

There’s a bit of stigma around lease-to-own that it’s just for consumers with bad credit and low-income. However, that’s not the case, Arevalo points out. “A lot of times when emergencies happen, you don’t always have a plan. Sometimes a plan is going to develop in a couple of weeks or months, but we provide a solution for the customer in real-time and help them get their plans in order to be able to replace their furnace, AC unit or water heater — whatever it is they need — in an appropriate time.”

Reaping the Rewards

Garland, Texas-based On Time Experts has been offering lease-to-own financing through Breeze Lease since April 2024. Since then, the company has noticed an increase in sales and ticket sizes, according to Matthew Isbell, production manager for On Time Experts.

“Often, our clients are not in a position to pay upfront to replace a system and need the option of monthly payments,” Isbell says. “Being able to offer a monthly payment option to a client who doesn’t have the credit profile, or to a client who doesn’t want to run their credit, is invaluable.”

Isbell notes there have been many instances where a client was facing major repair and decided to replace as a result of Breeze Lease offerings. “Most of our transactions have been over $8,000. In the last 10 months, we have done over $200,000 in sales that we would’ve otherwise walked away from thanks to Breeze.”

Isbell says that having Breeze as an option has made a big impact to the company’s technicians and its customers.

“HVAC systems are getting very expensive these days, and 70% of our clients need monthly payment options,” he says. “Being able to provide these options to more and more people is critical moving forward. The future is bright with lease-to-own options. We have been able to restore comfort to people's lives by partnering with Breeze and are able to serve many more clients in need as a result.”   

Dayco Systems Heating & Cooling, located in Acworth, Georgia, is another contracting business benefiting from offering lease-to-own financing options. According to Sammy Williams, sales manager, Dayco Systems has been offering these options to customers since April, and has seen a 5% to 10% increase in sales as a result.

“We’ve found that lease-to-own works best when positioned as a fallback solution — it’s leveraged for clients who can’t get approved through our primary financing option,” Williams says. “Presenting it as a way to still move forward despite credit challenges helps ease hesitation.”

While the company doesn’t yet market this type of financing, Williams notes it is coming soon. “As we prepare to highlight lease-to-own specifically in our marketing, we're excited about the potential to reach an even wider audience — especially homeowners who may not qualify through traditional lenders. We believe it’ll be a strong addition to our lead generation strategy and a great way to show customers that flexible, affordable comfort is within reach.”

Williams points to the approval speed and customer satisfaction as benefits of working with Breeze.

“It’s near instant approvals, often within minutes,” he notes. “This is a huge advantage over traditional financing partners that may take hours — or even days — for a decision. The quick turnaround helps us keep momentum during sales calls and prevents customer drop-off. And our customers appreciate how simple and transparent the process is. There’s no hard credit pull, minimal paperwork, and clear terms, which builds trust. Plus, the lease-to-own structure helps more customers qualify, especially those with less-than-perfect credit. Overall, Breeze has contributed to smoother transactions and more happy homeowners.”

In the two months since Edinburg, Texas-based JC Air Conditioning & Heating has partnered with Breeze Lease, lost sales have decreased by 15%.

Sylvia Chasco of JC Air Conditioning & Heating also notes the company is in the process of changing its marketing strategy to include lease-to-own financing. Chasco sees the growth potential in offering this type of financing so much so that she would like to gatekeep it from the rest of the industry.

“Breeze is such a game changer for customers who, in the past, have little to no option for financing,” she says. “We want to be the only ones out there to have this option!”

How it Works

Essentially, the customer would fill out the online application. Within a matter of 30 seconds, they have a decision, Arevalo says.

“It’s a very tech-driven, fast process,” he says. “There’s no credit check involved whatsoever. We’re very transparent with our payment terms — if they go the full term, obviously, they will pay more, but there are early payoff options. Then, once the unit is installed, the contractor receives payment, and their responsibility is done, aside from holding up any warranties. You move onto the next customer.”

Similarly to other types of financing partners, Isbell, Williams, and Chasco all report receiving payment from Breeze within 48 to 72 hours of system installation.

“Lease-to-own in the HVAC world is still very new, and customers, a lot of times, don’t like being told they’ve been denied,” Arevalo explains. “So when you start advertising, you say you have a ‘no credit needed’ payment option. What it does is start attracting that customer base that maybe thought twice about applying for credit because they were worried. Once you run the application, they will get a dollar figure that they’re approved for, and then you have that to work with. The customer still has a choice. If they get approved for $10,000, they don’t have to spend the full $10,000. But the contractor will be able to build the sale off the customers’ needs.”

If a customer decides to stop paying on a system, it has no impact on the contractor, Arevalo adds. Breeze has its own collections team and process to handle any issues that may arise after the fact.

“All lease-to-own companies will try to do everything possible to work with he customer and offer them payment options to get the account resolved,” Arevalo says. “As you can imagine, there’s no resale value with the units. We’re not going to out there and suddenly rip out the unit.”

Breeze also doesn’t charge a dealer fee to contractors, Arevalo points out. “It’s completely free to partner with us. There’s no monthly membership or yearly membership. If your invoice price is $10,000, we’re going to fund you $10,000, not taking anything away from you. We make that initial investment, and just for us to break even, it takes about two years.”

One of the biggest myths about lease-to-own is that it rips customers off.  Arevalo notes this is something he even thought himself when he first started in the industry. “It’s a bit more expensive than traditional financing. It took me two months to really understand that we’re giving an opportunity to customers that may not have another option. So, by not offering lease-to-own, sometimes we’re doing the customer a disservice because that may be their only option. As salespeople, we shouldn’t be making the decisions for the customer. The reality is that lease-to-own is becoming a lot more common. If you don’t offer it to your customer, somebody else in your city will come in right behind you and offer it.”

By giving customers a flexible, budget-friendly way to access comfort without a large down payment, HVAC contractors can close more sales, build long-term loyalty, and stand out in a competitive market.