More and more, consumers today take advantage of financing to help them purchase both small and high-ticket items. Below are 5 reasons why homeowners may want financing, and why you really need to consider providing this option for them.
- The project they are planning will cost more than they anticipated.
As a contractor, you strive to provide the best offer and close your proposal everytime on your first visit.
Yet many homeowners may have no clue how much the job they want will really cost, since the average consumer typically only purchases an HVAC system once or twice in their lifetime.
You can help your customers to overcome their sticker shock by providing them financing solutions that will suit their needs to get the project moving forward.
2. They want to begin their project now and pay for it with an upcoming cash payment, like a work bonus, once they get it.
These types of consumers have the certainty that the money they need to pay for the job will be forthcoming. And they see little reason to wait until they have that cash in-hand, when they can finance the job now, and pay for it in full later.
These customers are ideally suited for deferred payment plan options, with 0 payments due until the end of the promotional period.
3. They’re sophisticated users of credit who prefer not to tie-up their own cash.
These customers know that credit card companies and lending entities are fiercely vying for the opportunity to give them a loan. So they do their homework, figuring out which credit cards and other lending institutions offer the most competitive rates and perks before signing up.
4. They’re planning to sell their property and need to complete a project prior to listing
For customers looking to sell their property, who may have work and relocation deadlines that put intense pressure on them getting the HVAC job done quickly, access to financing is key.
Since they need to finish the project before they can sell their home, their sense of urgency trumps all other considerations. If you don’t offer these customers financing, they’ll move on to one of your competitors who does, case closed.
5. They don’t currently have the cash to pay for the job and need a low monthly-payment solution
Lots of homeowners you encounter won’t have enough readily available cash-in-hand to invest in an unplanned repair or renovation project. Indeed, according to 2018 data from the Federal Reserve Board, 40% of U.S. adults say they don’t have the money on hand to cover a $400 emergency.
A good option for customers who don’t have the funds to pay the loan back within a 12-month period is to offer them a low-monthly payment and low-interest rate options.
At the end of the day, while you can assume most homeowners would love updating their home, the chances of getting a call from a cash-in hand customer eager to pay for a $10,000 job on the spot are slim.
Regardless of whether your customers have the money at hand or not, they’ll look to you for a way to help them fund their HVAC job.
In giving them painless access to apply for financing through the Credit for Comfort application, you make it possible for them to purchase a high-ticket item they need, or fund a dream project they want, and maximize your opportunity to close on each sale.