"At a time when homes are older and more expensive to maintain, many homeowners are unprepared when it comes to understanding and planning for the real cost of maintenance and repair," said Curtis Howse, executive vice president and CEO, Home & Auto, at Synchrony. "Our Lifetime of Home Care study reveals a critical disconnect between perception and reality and highlights why greater awareness of costs and flexible financing solutions are essential to keeping homes safe, sound, and livable over time." 

Home maintenance has become one of the most significant sources of financial stress for American households, surpassing healthcare, childcare, and debt. These feelings are warranted. According to the Lifetime of Home Care study: 

• Homeowners estimate spending $70,000 on maintenance and repairs over a lifetime, yet the actual cost is more than $339,000 for routine upkeep alone. 

• Homeowners estimate spending $1,000 to $5,000 annually, but the actual costs exceed $7,000 per year. 

• Homeowners could spend more than $418,000 over the course of ownership when they experience major emergency repairs, such as HVAC failures or water damage. 

• Nearly half of homeowners (48%) have delayed or canceled projects due to economic pressures, which can result in more expensive repairs down the road. 

Additionally, three out of four homeowners have experienced an emergency home repair, and 40% of those incidents cost more than $3,000. Despite this inevitability, seven in 10 homeowners lack sufficient repair reserves. 

This is where HVAC contractors can play a key role. Not only does offering financing provide an avenue for customers to pay for home maintenance, but it also improves the bottom line for contractors.  

According to a survey from the Air Conditioning Contractors of America Association and Farmington Consulting Group, 68% of contractors have financing available, with 79% of residential and 49% of commercial contractors offering it. However, only 37% are offering it on every job.  

The average close rate is 38% when contractors don’t offer financing. When they do, that average rises to 49%. 

Despite broad awareness of financing options, many homeowners fail to use them. While three out of four consumers know contractor financing exists, only one in three has used it, often relying on out-of-pocket payments. 

“Financing is a process that goes from the first contact till the sale is closed. And so you mention financing when they first contact you, you mention it during the sale,” said Steve Howard, HVAC industry veteran and founder of training firm ACT Group Inc. “The more you mention it, it takes the pressure away from ‘How am I going to afford this?’ so they can start thinking about the benefits instead of the cost.”