Buying versus Renting HVAC Equipment

Tom Rand – Walker ClimateCare

When you’re installing new mechanical equipment in your home you’ve got a lot of choices; what type of equipment you’d like, what features it has, and so on. One of the more important, but often overlooked, elements is how you’re going to pay for that new gear. The failure of an old furnace or air conditioner always comes as an unwelcome surprise, at an inconvenient time, and so many of us aren’t well-prepared financially for such emergencies. 

The good news is that regardless of your readiness, you don’t need to be cornered into a bad decision because you need to act quickly. It’s still your call about how to pay for your investment! Dealing with a reputable contractor is your first defence (as discussed in this column last December). 

One of the most common questions that’s asked is whether consumers should buy or rent their new equipment. Like with most things, buying makes the most sense in the long term. When you rent anything, the renter is going to want some profit for their service, so you’re paying a marked-up price. Mechanical equipment is no exception. 

While many of us haven’t considered – or maybe even heard of – renting a furnace, we do rent our water heaters. Some large regional and national players have done a very good job convincing the general population that this is in their best interest. The math doesn’t add up though. Paying monthly for something forever rarely does. In many cases, you could have paid off that with an outright purchase well before the manufacturer warranty expired. Proponents of rental contracts will often cite the value of the extended warranty they offer. It’s important to know that you can acquire extended warranties on purchased equipment, too, should you so choose, and that your equipment may well work for years beyond its warranty period – especially if you have a professional maintain it regularly. 

The upfront cost is, of course, the one detraction to purchasing equipment as it is much higher than a monthly rental payment. That doesn’t mean you can’t take advantage of the long-term savings just because you don’t have the lump sum of cash available, though. Many contractors offer flexible financing options either in-house or through reputable 3rd party finance services with very attractive rates for affordable monthly payments or deferral periods which are especially helpful if you’re expecting a rebate cheque to fund some of that new purchase. 

One last note here – and it’s a very important one – is that renting equipment disqualifies it from a huge majority of government incentive programs, including the Greener Homes Grant which currently offers up to $7,100 off a qualifying heat pump installation. That’s a considerable amount of money that you should be taking advantage of with your purchase and keeping in your pocket instead of someone else’s

Originally Published by Cornwall Seaway News: linked here