What’s a fair consumer APR for HVAC installs? How do long terms affect close rates?

Consumer APRs vary widely. Prime borrowers might qualify for single-digit rates on secured loans, while unsecured loans for subprime credit can climb above 20%. Longer terms lower the monthly payment, which can improve close rates, but they also increase total interest paid.

Consider offering 6- or 12-month same-as-cash for buyers who can pay quickly and a mid-term fixed-rate loan for those who need more time. If you choose to absorb the dealer fee on long-term 0% plans, raise your price accordingly.

Always run the numbers: the goal is to sell systems, not to become a high-risk finance company. Transparently explain the rate, term and total cost so customers can decide what fits their budget.