Buy , Finance or Rent? What are my options?

January 4, 2019

Gone are the days where your furnace or air conditioner has broken down, and the next day you had one installed with the cash you kept under the mattress. We now live in a world of different options including financing and renting. But what do you choose and why… do you know your options? If not here is a quick guide that can help.

OPTION 1: Pay within the terms the company allows. For us it happens to be 30 days.

PROS:

  • You can pay with credit card, cash, cheque or debit. If you pay with credit card you can accumulate points to hopefully pay for your next vacation.
  • You have no more payments to worry about… ever…

CONS:

You need access to the cash… if you don’t have it then we need to look at option 2 or 3.
OPTION 2: Finance. Now, this can come with a variety of options, our most popular gives you no interest and no payments for 12 months for a $39.95 administration fee.

PROS:

  • You have 12 months to pay off your balance, and if you do, you have paid no interest – woohoo!
  • If you have any rebates coming to you, you can wait until you receive them and apply that to your balance.
  • If you go longer than 12 months, it’s ok, you continue on with a low monthly payment and then pay off the remainder whenever you wish with no penalties.

CONS:

  • You need to get approved through financing (you can go to our website to see if you are approved).
  • Your monthly payments may go up at the end of the 5-year term
  • You have to pay interest if you go beyond 12 months
  • You may have a lien against your home.

OPTION 3: Rental. Believe it or not you can now rent your furnace or air conditioner.

PROS:

  • ALL of your labour and parts are covered for 10 years
  • Your maintenance is included in the rental contract
  • You own the equipment at the end of 10 years
  • Your payment will never go up
  • It’s transferable
  • If you pay it out early, you are only responsible for the remaining balance including the extended warranty, no surprises

CONS:

  • You don’t own the equipment until the end of 10 years (unless you pay it out early)
  • Your monthly payments are higher than financing due to labour, parts and maintenance fees being included.
  • You have a lien against your home.
  • Be aware, not all financing and renting programs are created equal. Make sure you understand all of your buyout options and what price increases may be looming for you if you want to get out of the contract early.

It all comes down to what you need…

Is it that you need total peace of mind with a rental unit so that you don’t have any surprises?

Is it that you need just a couple months to pull the funds together and then to pay off the loan before you have to pay any interest?

Or is it that you would really like enough points on your credit card to get you to Jamaica…

The options are out there.

If you have any questions about our options and our equipment, feel free to give us a call and book in your free no obligation in-house consultation.

Oosterveld Heating & Air house icon
Categories: