Chargin’ It or Paying Cash for Replacement Windows: What’s the Ideal Choice?

energy efficient windows can save you moneyWhy replacement windows should be viewed as an investment.

With quality replacement windows, especially energy efficient windows, homeowners in Toronto and the surrounding area can save a tremendous amount of money on their heating expenses every year. That’s because 40 percent of their home’s heat is being lost through drafty windows and doors.

Whether you’re looking to save as much money as possible, seeing this as an incredible opportunity to not just save money on your heating expenses in the future with the proper investment, or you’re trying to improve the appearance of your home, the cost of these replacement windows and installation may be a significant chunk of change.

You can certainly consider refinancing, paying cash, charging it on a credit card, or relying on financing from the window and door company or directly from the manufacturer, if you qualify.

So what’s best? Should you pay cash or charge these replacement windows?

That all depends on your financial situation. If you have enough money in liquid, accessible cash assets, such as sitting in a savings account, it would be more prudent for you to purchase those windows using that cash. That is, unless you have an offer whereas you can purchase the windows on credit interest-free for up to a year or two, and you make sure you pay off the entire loan within that window of time.

If you don’t have liquid assets available to pay for these windows, an interest-free loan or payment plan -whether it’s through a credit card company, the window and door company, the manufacturer, or some other provider- may be a good option to consider. You need to make sure you can pay off the loan during that window of time. If you don’t, you will be charged the full interest from the beginning of the loan until it’s paid off. That can add thousands of dollars to the end price of those replacement windows and/or doors.