What’s Wrong with Renting a Furnace or Air Conditioner?
Many South-Western Ontario home owners rent their water heater. An increasing number of companies are also offering to rent you a furnace or an air conditioner. Home owners are sometimes talked into renting a new furnace or air conditioner to avoid an expensive repair bill.
There are problems with renting home comfort equipment, that people do not always consider. Here’s an example of what can happen:
If you accept a $10,000 system with rental payments of $115 per month on a 10 year contract, you’ll pay out $13,880 over the life of the contract. If you decide to sell your home in 2 years, you will have already paid $2,760 (24 x $115). To pay out your contract, you will owe $13,880 - $2,760 = $11,120. That’s more then the equipment was worth in the first place!
Before you rent equipment, ask a reputable contractor for a repair estimate. If you still believe you want new equipment, ask a reputable contractor for their financing terms. Loan payments are often comparable to rental payments. Loans offered through The Hayter Group are fully open. That means you can pay them off at any time with no penalty.