Expanding Financing to Match Today's HVAC Price Reality
Key Highlights
- HVAC equipment prices have increased significantly, prompting homeowners to repair existing systems rather than replace them entirely.
- Contractors are expanding financing options, including lease-to-own and installment loans, to make HVAC upgrades more affordable and accessible.
- Training technicians and sales teams on confidently presenting financing options early in the sales process and offering low monthly payments can help close deals and improve customer satisfaction.
Pricing for HVAC equipment is at an all-time high, leaving many homeowners facing sticker shock when it's time to replace an aging system. With this new reality, contractors are seeing changes in customers’ buying behavior, with some homeowners choosing to repair existing equipment rather than invest in a full replacement. In response, financing has become an increasingly important tool for helping customers manage costs and for helping contractors close sales. From financing new systems to, increasingly, major repairs, contractors are adapting their offerings and sales strategies to meet the realities of today's market.
Regular and Irregular Price Increases
Customers understand and recognize that prices go up. However, the cost of HVAC equipment and services has risen exponentially. “HVAC has become more cost-prohibitive in the consumer’s mindset,” says Eric Howarth, senior vice president of Home Innovations at GoodLeap.
The rise in prices, while semi-gradual, has come in two waves. The COVID-19 wave of 2020-2022 saw high demand, product shortages, and broader supply-side issues that affected many industries. The second wave of price increases began around the start of 2025 and can be traced to inflation, labor shortages, tariffs, and new refrigerant requirements.
“We’ve seen the average loan request grow by 40% since 2020,” says Hamilton Arevalo, vice president of sales and business development at Breeze Lease.
“The rise in prices for HVAC, and prices more generally, has made affordability a new buzzword,” says Vince Lowe, senior vice president and general manager for home specialty at Synchrony. “Our Lifetime of Home Care study shows that 72% of homeowners feel anxiety about home improvements.”
"Affordability pressure and economic uncertainty are reshaping how customers make decisions," says Machais Schoen, senior vice president of HVAC at Palmetto. "People are in a cash preservation mindset, choosing repair over replace and financing more often to keep money in the bank. The national average FICO score has dipped for the first time in years, and consumer confidence has hit near record lows — these are economic realities, not just feelings.”
“Consumers are willing to pay more to keep an old system going due to pricing concerns,” adds Angie Snow, principal industry advisor at ServiceTitan.
Howarth notes Goodleap has seen the share of repairs (as opposed to replacements) increase from around 20% to 30% over the last two years.
The Financing Response
In response to rising HVAC prices and heightened consumer anxiety, HVAC companies are offering more and different financing options than they have in the past.
Palmetto offers customers an operating lease that includes service, maintenance, and membership benefits. Customers get the benefits of a new HVAC system without any impact to their credit, preserving borrowing power for other needs. Proactive annual maintenance, break-fix service labor, and warranty coverage help customers avoid unexpected costs and enjoy more predictable ownership expenses.
Synchony, which offers a full range of products, has also seen installment loans grow in popularity.
Breeze Lease offers a no-credit-check lease-to-own. The most popular financing option is one that offers lower monthly payments at a lower interest rate.
Some companies offer a financial option of deferred payments and no interest for a set period. Depending on the program, payments may be deferred up to 60 months.
Best Practices for Approaching the Financing Conversation
Presenting HVAC financing options doesn’t come naturally to some installers. The discomfort may lead them to neglect to mention financing, delay the conversation, or rush the conversation.
There are legitimate reasons for concern when it comes to offering financing.
“Some companies are afraid to include financing options because it means they have to pay money to the financing company,” Snow says. “However, they should build the financing cost into their pricing.” This could make prices seem more inflated. Snow has another tip, “For those who want to pay cash, offer 5% cash back.”
She adds, “Put the ball in the customer's hands by giving them more options. Offering financing on every job was once considered taboo, but is now simply a customer courtesy and expectation.”
A Synchrony study confirms this, finding that 97% of home improvement customers want to know about financing for a large-ticket item. “If HVAC contractors don’t offer financing, they’re leaving money on the table, as it helps them close deals and encourages customers to add services,” Lowe says.
Likewise, Snow has found that offering financing increases sales. “At my company [in addition to her role at ServiceTitan, she is part of a family HVAC business], since our techs started offering financing regularly, the average ticket has gone up. While this is partially because prices have risen, homeowners like having options.”
The goal of financing should be to help the consumer get to yes.
“Offer options with low monthly payments because by giving the customer an affordable monthly unit, there’s a better chance they can say yes,” Howarth says.
How should HVAC contractors handle discussing financing? Schoen says to lead with it.
"The contractors who are winning aren't opening with an $18,000 price tag — they're saying, 'how about $220 a month?'" he says. "Through partnerships, contractors can pair that financing approach with best-in-class, high-efficiency systems to give customers both affordability and confidence in the technology."
Arevalo concurs. “In training sessions, I counsel contractors to offer payments without hesitation. While some contractors see it as disrespectful to the customer, I remind them that people are paying for everything these days. So, they need to put the decision in the customer’s hands and let them choose what makes the most sense rather than making the decision for the customer.”
Ultimately, HVAC contractors need to recognize that they cannot know a potential customer’s personal financial position. They should divest themselves of preconceived notions about their clients. Customers want to hear about financing options, even if they don’t use them as part of payment.
Closing Sales in the Current Environment
HVAC services are not optional — people need to keep their homes comfortable. However, gaining customers and increasing sales takes effort.
HVAC contractors need training on how to effectively present financing because clear communication helps customers make informed purchasing decisions and builds trust in the contractor's recommendations. By investing in financing education for their technicians and sales teams, contractors can ensure these conversations are handled with confidence and professionalism.
A strong understanding of available financing options also enables contractors to highlight the value of energy-efficient upgrades and modern HVAC solutions in ways that resonate with customers. When financing is presented as part of a complete solution rather than an afterthought, contractors are better positioned to meet customer needs, overcome budget concerns, and close more deals.
About the Author
Larry Bernstein
Larry Bernstein is a freelance writer based in northern New Jersey. He specializes in construction technology; education technology; and transportation, logistics, and supply chain.