Generator Financing Options
$10,000 to $15,000 is a major purchase. Six financing avenues with monthly payment examples so you can decide based on monthly budget rather than lump-sum sticker shock.
Monthly Payment Estimator
Standard amortisation. Adjust amount, APR, and term to see monthly payment plus total interest.
INPUTS
MONTHLY PAYMENT
$243
Per month for 60 months
Monthly Payment Examples (36 months)
Quick reference for common amounts and APRs over a 3-year term.
| Amount | 0% APR | 5% APR | 8% APR | 12% APR |
|---|---|---|---|---|
| $8,000 | $222/mo | $236/mo | $248/mo | $266/mo |
| $10,000 | $278/mo | $295/mo | $310/mo | $333/mo |
| $12,000 | $333/mo | $354/mo | $372/mo | $400/mo |
| $15,000 | $417/mo | $443/mo | $465/mo | $499/mo |
All Financing Options Compared
PROS
Convenient, applied at point of sale. Promotional 0 percent periods available spring and fall.
CONS
Rates jump after promo period. Deferred interest: if not paid in full during promo, interest is charged retroactively.
PROS
Lowest ongoing rate for homeowners with equity. Interest may be tax-deductible. Flexible draw schedule.
CONS
Variable rate means payments can increase. Uses your home as collateral. Requires equity and good credit.
PROS
Fixed rate and fixed payment. Predictable. Lower rate than personal loans.
CONS
Closing costs ($500-$2,000). Slower to fund than personal loans. Home is collateral.
PROS
Fast funding (1-3 days). No collateral required. Simple application.
CONS
Highest rate option. Requires good credit for best rates. Shorter terms mean higher monthly payments.
PROS
Very low rates. Payments added to monthly utility bill. Some utilities subsidise generator installation.
CONS
Limited availability. Only in select markets with grid reliability programmes. May have income or home value requirements.
PROS
Repaid through property tax. Stays with the property if you sell. Long terms mean low monthly payments.
CONS
Only available in FL, CA, and select states. Creates a tax lien on the property. Some mortgage lenders have restrictions.
0% Interest Promotions: Read the Fine Print
Generac and Kohler periodically offer 0 percent APR financing for 12 to 18 months through their dealer networks. These promotions typically run in spring (March to May) and fall (September to October). The catch: these are usually deferred interest programmes. If you do not pay the full balance within the promotional period, interest is charged retroactively from the purchase date at rates of 18 to 26 percent. To benefit from 0 percent financing, you must be able to pay the full amount within the promo period. On a $12,000 generator at 18 months, that means $667/month. If that is not feasible, a HELOC or home equity loan at 6 to 9 percent is a better option with lower risk.