Hey guys Josh here I Want to do a video on what I would call the biggest scam in the HVAC industry I've touched on this in some other videos but I Just took a class this past week and a lady got up and was talking all about this one subject and that subject is financing. One of the things that she talked about in that meeting always seems to rub me the wrong way because if nothing else, she's very misinformed. And if you're watching this video I want you to make sure that if someone's telling you what this lady went over that I'm going to go over in just a moment that you know that it's not true that what they're saying to push their agenda to get you to finance with them is completely not true. And so let's talk real quick.

What is my biggest problem with the industry now I Can tell you that I've been blessed where Griffin Air operates. We don't actually have a lot of folks Finance Heating and Air Systems. The area that we live in and operate from a lot of our customers are either they've retired to that area or it's their second home and most of our clients are a little better off than at least where I grew up I grew up on the other side of Virginia and there weren't a whole lot of folks that could just stroke a check for a new heating and air system. No problem.

And so because of that, I'm in a unique position where I do know there are contractors out there that maybe they might even see this video and they say well, Josh I hear you but I have no choice I live in an area where I have to provide financing for my customers. Otherwise I can't operate and so I got you If that's the position that if you're a contractor, if you are in that position I hear you I'm That is not what I'm talking about I Don't think the contractors in this whole situation are the ones that are being misleading I Think it's the financing companies. So what happens with a lot of these companies is they have what we call dealer fees. Now the financing company might call it something different, but there's some sort of fees that are being worked in there in some way, shape or form a lot of these companies.

They'll say, well, we provide three years zero percent financing or five years zero percent And consumers hear that and they say well, I have no extra fees. It's zero percent financing. But what they don't realize is there are dealer fees in there that a lot of companies have to cook into their books. They have to build it into their pricing and figure out a way to still sell heating and air systems and give you what you want which is that zero percent option.

What happens is is when they're building it into their pricing, they have customers that are now that are going to pay cash or check that have to pay that higher price to account for all of that. And the argument that I always hear is, well, gosh, that's just the cost of doing business I disagree with that. That is not true. That is just something that somebody has said and now you hear all these people regurgitating that nonsense.

Let me get back to the lady that was teaching this class. This is the analogy she used. She said, when you go into Best Buy and you're buying a TV or a laptop and they're offering financing that Best Buy has to pay that fine financing company to offer that and that was her analogy. So she was saying heating and air companies are the same as Best Buy on that and that because Best Buy If you use one of their financing options in their store, they've got to raise their prices and build it into their pricing and so heating and air guys should do the same.

That is not true I Have lots of friends who have worked in the retail industry for a number of years and Best Buy is not having to pay for that I Don't know where she heard that, but she is very misinformed when she's saying that. And so if you as a consumer hear someone say that sort of stuff to you. I'm telling you when you go to: I Remember years ago, Bass Pro Shops used to have some sort of credit card. You could get zero percent get our credit card.

I've heard of other clothing stores that offer financing as well stores like Kohl's or JCPenney They'll have these cards that even when you're checking out at the register, they'll say hey, if you sign up for our card today, you'll save uh, fifty dollars off of this purchase. That lady teaching in this class this past week would want you to believe that JCPenney or Kohl's or any of them are paying to be able to offer that financing for their customers. They are not. And in fact, in a lot of cases they are not only not paying for it, but they are being paid by the credit card company or the financing company.

Whoever is providing that service, they are making a commission and that's how I know that. It's not true because I have friends that are in retail that they get a small little spiff or bonus every time they get someone to sign up for one of these cards, a lot of them have quotas. They'll say hey, you need to have two people a month sign up for these. You can ask any of your friends that work in retail and they'll tell you the same.

So for this lady who works for one of these financing companies to be teaching Heating and Air Guys hey, you need to build it into your pricing. make your cash customers pay more as well. You got to build it in somewhere and that's how it works. We have to provide that I can tell you.

Also, on top of all that is, if you go to my website, if you go to new Hvacguide.com and go to the bottom where it says financing, you'll be able to apply for financing third party. Separate from the heating and air company. you can ask the heating and air company directly. Hey, I Need your best price? Don't be building any fees I'm not going to finance through you.

You need to give me your best number here because I'm going to do the same to two other companies I'm going to get your best prices here and then I'm going to finance elsewhere. So don't be building those fees in on me. A lot of folks think and they hear zero percent financing that they're saving something not realizing they're actually paying more for that heating and air system than they should. So again, if you're one of those people that work for these financing companies that keeps lying to these heating and air guys, I'm gonna keep calling you out because it's not true.

The reasoning that you're using is not true. Now, if you want to just be completely honest and be open with the heating and air guys and say, look, we're greedy, We're a greedy financing company. Let's say this Apple is you. If we don't start getting our money back, get the picture and so we're making you pay us to provide your customers with financing, then fine, at least you're being honest for once.

But to say companies like Best Buy Like the analogy she used has to do the same. It's just simply not true. In fact, there are entire Industries built on selling loans. The whole entire mortgage industry.

There are mortgage loan officers out there. they get paid six figure salaries to just try to sell loans to people buying houses. So anyway, I've done other videos on this particular topic, but I just thought her little analogy she used in that class. it's just not true I So badly wanted to tell her that in the middle of the class, but didn't think that would be very nice of me.

Go to our website, go to your local bank, go somewhere, and get the financing elsewhere. Somewhere where you won't have to pay higher fees, get the best pricing from your heating and air contractors. So that way you know exactly how to compare apples to apples. And if it were me, I would not Finance directly through any of them because they have to build it into their pricing somehow.

So anyway, I hope that helps. Thanks Thanks for watching Hit that subscribe button. We'll see you next time.