It is already that time of the year once again! The weather is becoming much colder, the leaves are transitioning to their autumn colors, and the days are becoming noticeably shorter. This indicates that winter is on its way, which also indicates that you may need to replace your furnace in the near future. If that’s the case, how much will it set you back to have a new heating system installed?
Actual Furnace Cost
How much does it cost to buy a furnace? You need to begin with the machine itself as your point of reference. The first thing you need to understand about this cost is that it varies depending on the kind of furnace that is being purchased. A new high-efficiency gas or oil furnace with 90 percent AFUE (annual fuel utilization efficiency) may be purchased for anywhere between $1100 and $1500 on average, while a regular model with 80 percent AFUE can be purchased for anywhere between $1600 and $1800. Around $2,000 is the typical cost of purchasing a home with an electric heating system.
The cost of labor to remove the old furnace is another component of the total cost of purchasing a new one. Generally speaking, the cost of labor to remove your old furnace is between $500 and $600. If you need to remove your ductwork as part of the replacement process, you can expect an additional cost of between $200 and $400.
The next component of the cost of a furnace is the labor required for installation. The cost of labor to install a new furnace typically ranges between $700 and $900. If you need to improve your ductwork or your electrical as part of the replacement, that would add another $400–$800, or more, to this cost depending on the size of your house and whether or not you want to change the wiring.
Can You Pay for the Replacement?
Homeowners have access to a variety of financing choices for heating, ventilation, and air conditioning systems. Either a heating, ventilation and air conditioning (HVAC) firm or a third-party financing provider may help you get financing for a new furnace.
Depending on the kind of furnace you purchase and how much it costs, you may be able to get financing from a local bank or credit union for a period of 12 months to 60 months at an annual percentage rate (APR) of around 11 percent. This may seem to be a big amount; however, keep in mind that there will be no interest rate charges incurred if the loan is paid off early.
So, what should we take away from this? If you need to replace your furnace, the cost will range from $2,000 to $6,000 depending on the kind of furnace, the cost of labor, and any modifications that are required. If you have to replace your furnace, you should plan on spending between these two amounts. On the other hand, there are options for financing, so you won’t have to pay for this all at once!
Benefits of Buying a New Heating System with a Loan
Many people are taken aback when it comes to the prospect of putting in a new heating system or fixing an existing one. If you are trying to live within a certain financial limit, you can find it difficult to fund such costs. The good news is that homeowners now have more options available to them for financing heating and cooling systems, and the process has become easier to navigate.
When you finance your heating and cooling systems, you may avoid making a lump-sum payment for the total cost of the system or repairs right once. You do not pay for it all at once, but rather make payments over a period of time that might range from a few weeks to many months. This implies that you will not need to save up the whole amount of money necessary to purchase the system in order to do so. You have the option of getting the heating system either installed or repaired when it is most important to do so.
Pros of Getting Financing for Your New Heating System
The following are some of the advantages of financing your new HVAC system:
Your HVAC firm will need to form a partnership with a financial institution in order to get funding in the form of credit lines. Other advantages of purchasing a heating system include the following:
How to Submit the Application for Financing?
Homeowners have access to a variety of financing alternatives, and these options may be tailored to practically any financial situation. Documentation such as credit reports and pay stubs are reviewed and analyzed by financial lending companies prior to decision making. They then choose the quantity of credit that will be granted in addition to the interest rate that will be charged. In the event that your credit history is limited or that your credit score is low, they could additionally consider the letters of reference that you have provided.