For most homeowners, it’s best to finance a furnace rather than to rent. In the long run, you’ll save money, have more control over maintenance and services and won’t be locked into a long-term rental contract.
Rent a Furnace
If you decide to rent a heating system, you’ll end up paying a monthly fee to an HVAC or energy company that rents you the furnace. The monthly fee usually includes the principal payment, interest and fees to cover service calls. Since the rent-to-own contract can be as high as 17 years, the overall cost for the furnace can be extremely inflated.
It’s important to note that when you rent a furnace, there are multiple problems that could occur and are not typically discussed prior to signing the contract:
- You’re locked in with a specific company and don’t have the ability to choose the company you want to work with.
- Renting also makes it very difficult if you plan on selling your home prior to the contract ending. The seller must assume that the new buyer is happy to continue making the payments and continue the contract going forward, if they do not, as the seller you must buy out the contract with a penalty. Typically, these costs are large amounts that must be paid all at once.
- Should you choose to buy out the contract early, there are restrictions which can add significant costs which need to be paid in one lump sum.
- Most of the rental companies typically put a lien on the home without disclosing it to the client.
Financing a Furnace
There are many financing companies that will provide homeowners with a loan to purchase a new furnace or air conditioner from whatever HVAC company they choose. Instead of renting a system from a company—with additional fees bundled in—you just pay back the borrowed amount plus interest. The loan periods are often shorter than with renting and you always have the ability to pay off the remaining amount whenever you want—without penalty—ending the financing term.
HAMCO Heating & Cooling Ltd. is happy to work with SNAP Home Finance, an industry leader in financial solutions for home improvements. You can easily apply online and receive an on-the-spot pre-approval. SNAP doesn’t require a down payment and you’re able to pay off the loan anytime, without any financial penalty.
Consider all financial and personal aspects when deciding if you should rent or own a furnace,
and feel free to contact a HAMCO professional for personalized advice.
HAMCO Heating & Cooling Ltd. has been serving Hamilton and the surrounding area for over 70 years. We’re fully committed to providing the best quality service for all our customers on every service call and installation.