A Baltimore HVAC professional has some advice if you’re installing a new system. Make sure you ask about contractor fees on your financing, because 0% financing usually isn’t free.
TikTok creator @Bradknowshvac shared a big secret within that professionals: Many HVAC companies work with third-party lenders, which creates big contractor fee percentages that aren’t disclosed properly.
Financing fees, according to Brad, range from 6-7% but can be as high as 13-16%. The financing price, then, would be higher than the cash or check price for the services, despite these professionals offering supposed “0% financing.”
Are HVAC Salespeople Taking Advantage of Homeowners?
Brad also added that many companies build this fee into their upfront quote, which means that some consumers may still overpay without a cash discount.
“That’s getting added to the cost of your job,” Brad said. “If you don’t ask what the contractor’s fee is, if you don’t bring it up as a topic, a lot of providers have already built it into their job cost. So if you do in fact pay cash or check, they’re making more money on you. They already have the contractor fee built into the price.
Brad explained that he personally chooses to be transparent by offering separate cash and financing prices and clearly explaining the fee. In his eyes, homeowners should ask about contractor fees and cash pricing to make sure they’re not getting scammed. In essence, Brad advocates that if you pay for your HVAC services in cash, you should ask for the contractor fee to be removed.
Brad isn’t the only one who figured out this issue. A blog called the Project Warden called the phenomenon the “0% financing trap,” explaining that HVAC contractors can sometimes inflate the total price of the job to make up for a dealer fee that the company is charged by the bank serving the loan.
And that’s not the only contractor fee frustrating homeowners. So-called “visit fees” are also becoming a red flag for consumers when it comes to choosing contractors.
Brad’s HVAC Experience and Value Proposition
The HVAC professional has been in the business since 2003, working in in-home HVAC sales. According to his website, Brad was “witness to homeowners being taken advantage of on a regular basis.” Companies had price-gouging policies, which made Brad feel “sick.”
He moved into the industrial and mechanical space in 2008-2009, but did some residential HVAC work. Now, Brad posts “HVAC Truths” on his professional website, helping consumers understand coupons, rebates and other issues with HVAC installation.
Brad urges home-owners to be skeptical of discounts, prices, rebates and sales pitches. “If you are getting offers from a provider to discount your price on a new HVAC system by $750, $1,000, $1,500 or more then you should be asking why they didn’t offer you that price to begin with,” Brad said on his website.
How Posting on Social Media Backfired
According to his TikTok videos, the advice he offers online has also gotten him placed on scam call lines. In his video, he explained that his phone number recently got put into a lead generating service. Brad’s phone number has hundreds of lumber workers, roofers, and solar employees” contacting him.
Despite that, little has stopped him from posting additional advice for homeowners. He even offers a tip line for anyone to contact him and ask if they’re getting a fair deal.
“If you have already gotten your estimates and proposals, but are not sure how to navigate through them to decide which one is best for you, I am happy to answer any questions you may have by text, email, phone or live video message. I do not charge a set amount for this service. Instead, I allow the customer to decide what my services are worth to them,” Brad said on his professional website.
All Hip Hop has reached out to Brad for more information. We’ll let you know if he responds.
@bradknowshvac Dirty little #HVAC #Financing secrets for #homeowners ♬ original sound – BradKnowsHVAC