The last thing any homeowner wants to experience is bad news from their local HVAC specialist about their furnace. Gradually your trusty old furnace has lost efficiency, the repair bills have become more frequent and now it seems that it’s finished for good. After that initial shock, it’s time to find a solution, and replacing a worn out furnace can be an expensive proposition. When the colder weather is setting in, time is of the essence and you need to decide whether to rent or purchase your next furnace. In this article, we will examine this issue in more detail to help you make an informed decision.
Which is the Better Option?
The short answer is that buying a furnace is a better option than renting. In virtually every situation, this is true, and renting should always be considered only as a last resort. Of course, if you have the budget to buy your furnace upfront then that is a great option. But, if a furnace is outside your budget right now, then you are going to need some kind of financing. A bank loan is possible, but it’s always a great idea to check with your local HVAC specialist and ask about financing deals. In many cases, they can offer you competitive rates and deals that help you spread the cost of your new modern furnace.
Getting a Great Finance Deal
It’s a good idea to shop around for a furnace finance deal, which comes without any upfront charges. It’s not unusual to find a deal that offers 12 months without any interest charges on select heating and cooling systems. Purchasing is a better option because you will own the furnace at the end of the loan period. To make an accurate comparison, you would need to consider the average lifespan of a furnace which is 12-15 years. To keep the furnace at the upper end of that range, it’s important to invest in regular annual maintenance. But, even when those costs are factored into the costs of ownership, buying is still the clear winner. If you rented a furnace for a decade or longer, you will certainly spend thousands of extra dollars with no appreciable benefit.
More Choice for Service Providers
When you rent a furnace, you’re locked into a contract with a company for essential maintenance and repairs. This may not seem like a big deal, but not every HVAC company is reliable and you could be saddled with a bad service provider. If something goes wrong, are you going to get quick service or will you have to wait for a long time? When a company already has your money, they may decide to put your needs on the back burner. When you purchase your furnace, things are very different and you are not tied into using the same company that financed the purchase. Of course, if the company is diligent, there are advantages to using them because they know your system. But the choice is yours and if you don’t like the service you can choose a different HVAC company to work on your heating and cooling system.
Avoiding Hidden Rental Fees
When you own your furnace outright, you don’t need to worry about hidden and rising rental fees. There is no lengthy rental contract to worry about and you are not tied into using the same company for years. Again, this is especially relevant if you don’t like the HVAC company that you are forced to work with for the remainder of the rental period. Remember that the money you pay monthly to purchase your furnace is specifically for that purpose with an interest fee to cover the loan. But, even if you opt for a “rent to own” scheme to purchase your next furnace, it may not be a good deal. Many deals like this charge a premium which can significantly extend the period until you own the furnace. Additionally, the furnace that you have been supplied will probably be older and worn out by the time the balance is fully paid off.
Investing in Your Home
When you own your furnace, it becomes an asset that can add significant value to your home. This is especially true if you invest in a high-efficiency model that many potential buyers will look for when they are ready to buy. In fact, certain realtors will instruct their buyers to decline a furnace rental agreement that is in place when they decide to make an offer. If this happens, you will need to buy out the furnace rental contract as a condition of sale, which could be expensive. So, purchasing your next furnace can add value to your home and a rental furnace can negatively affect the equity of your home. A furnace rental contract can even register a lien on your home to protect the interests of the rental company. As you can see, buying a furnace is the best choice if you plan to sell your home in the future.
Seasonal Cost Concerns
When you rent a furnace, you pay for it all the time and that extends into the hotter summer months when you won’t even use it. So, when you’re thinking about cooling your home with an air conditioner unit, you will still be invoiced for the furnace rental. This is exasperating when you consider the alternative, although you may still pay to buy the furnace, at least you will own it at the conclusion of the loan period. In this way, you consider the money paid as an investment instead of a waste because the furnace is not in use.
Hopefully, we’ve demonstrated that purchasing your furnace is a smarter decision than renting one. It is possible to get a great deal and you may not require any money upfront to get access to a furnace with better energy efficiency. The reduced costs of your heating can even offset the purchase price each month. If you want to purchase a new furnace for your home contact your local HVAC specialist today.