HVAC financing

Watch for two structures in particular. Deferred-interest or "no interest if paid in full" promotions can retroactively charge all the accrued interest if any balance remains at the end of the promotional period. And a contractor may quote a slightly higher price for a low-rate financed deal, because the lender's dealer fee is baked in. Ask directly: "Is the cash price different from the financed price?"

Compare at least one outside option. A credit union personal loan or a home equity product often carries a lower APR than promotional contractor financing, and it doesn't tie you to one company's proposal. If you use secured borrowing, understand that your home is collateral.

On incentives: federal, state and utility programs change. The IRS is the authority on federal credits and your utility is the authority on its own rebates. Don't let a proposal that assumes an incentive be the reason a system looks affordable. Confirm eligibility in writing before signing.

How to choose

Get the cash price before the payment plan

Written, itemized, total. Only then look at financing. A monthly payment is not a price.

Read the deferred-interest fine print

If any balance remains when the promo ends, some plans charge interest back to day one. Know the exact payoff date and set a reminder well before it.

Shop one non-contractor lender

A credit union or bank quote gives you a benchmark APR. Contractor financing has to compete with something.

Verify incentives at the source

The IRS for federal credits, your utility for rebates, your state energy office for state programs. Not the sales sheet.

Don't finance an emergency decision

If you're financing at midnight during a breakdown, you're likely overpaying. Fix it temporarily, then buy properly.