Posted on
May 29, 2022
by
Patricia Guest
LEASE VS PURCHASE HVAC SYSTEM
STAY COOL AND DON’T OVERHEAT BY FOLLOWING OUR ADVICE
Presently, the real estate market has been complicated by changing mortgage rules, lack of inventory and rising interest rates. Separately, each of these factors can complicate buying/selling decisions making conditions volitile. Many other issues can impact the value of a home and its attractiveness to potential consumers. Over our years of experience long-term contacts associated to HVAC installations have proven to be problematic.
As we enter the steamy months of the summer one guaranteed truth is that we will rely on our home comfort systems most days. We have seen real estate deals be blown up by oppressive long term HVAC purchases that will demand full pay out before a deal can be closed.
In many instances clients are attracted by seemingly low payment plans accrued over several years, and as time passes many forget about this monthly payment. When the time comes to settle sellers are faced with the formidable cost of pay out these contracts.
Commonly, a HVAC company will offer low monthly payment over five years for a home comfort solution at a cost of $8000-11000. What consumers do not realize is that these prices are inflated up to 25% with interest rates close to 9%. The penalties for buying out these contracts are substantial, in addition to the initial inflated price point. If clients maintain the contract for the duration of the required time these heating and air conditioning units can end up costing double. These contracts cannot be assigned to new owners and remain a liability to the seller.
What’s the solution?
1. Avoid these contracts.
2. Ask questions about penalties, closing ratios and read the fine print of any HVAC agreement.
3. Look for contractors that offer their own cheaper financing or shop at a store that has no interest for 12 months. Be sure to pay off these agreements before the end of the 11th month.
4. Get a couple of price quotations from reputable independent contractors
5. Check into a home line of credit to finance your HVAC project.
6. Be wary of the premium you pay on brands like Trane and Lennox, all units are made with the same components and have the same warranty.
7. Make sure you fill out all warranty cards as you might qualify for an extra five years of coverage.
In our two decades of experience, we have had several clients disappointed when large cash payouts are required before closing. If a low monthly payment over five years seems too good to be true, it likely is.
Feel free to contact us for more information or contact our trusted HVAC specialists at
info@fortisheating.com and tell him Trish and Kevin recommended them.
