Thinking about Leasing Your HVAC? Know the Facts and Read Your Contract!
You may be considering installing a new HVAC unit but do you know the benefits between a lease vs. buying scenario? There has been a rise of new payment options when replacing your heating and air system. Leasing a system is a new concept here in metro Atlanta that may seem like a good option. Make sure to get all the details to see if this is the best option for you!
The fact of the matter is, leasing a system is similar to leasing a car but paired with continuous maintenance and all repairs covered! Similar to leasing a vehicle, you do have 
obligations and are bound to the company you are contracting for the life of your contract. The benefit is of course the worry free options of never having to pay anything more than the day of your install. While this may not be for everyone, knowing the details and fine print will help you make the decision if this is a program for you.
What your Lease offer May Include:
No Upfront Costs- Of course no upfront costs is appealing to unexpected home improvements.
- PRO - Keep your Money in Your Pocket
- PRO- Worry Free Installation without additional costs for repairs and maintenance
- CON- Financing options to BUY your system also include the same no cost options, as well as possible 0% apr term plans. However you will have to properly maintain the system each year by purchasing a maintenance plan to keep your warranty active.
While no upfront costs are a great selling point. You can get this same type of benefit and own your system with a financed plan with yearly costs.
Deferred Payment Options:
- PRO- Your payment is delayed by a certain number of months
- CON- Where is that money going? Get the details of this deferred plan in writing and find out where the company is absorbing the cost of the months without payment.
Lifetime Service, Repairs and Maintenance:
- PRO- Not worrying about any costs for repairs and maintenance.
- PRO- Having 1 company to go to for all your heating and air needs. Better make sure their service is beyond great!
- CON- You cannot have anyone else work on your HVAC unit. You must succumb to the company schedule and customer service. If you trust your team and they provide you great service then this is a non issue.
Are you ready to be married to your heating and air company and their employees, without the possibility of a break up? As a consumer, you have options when you are not satisfied. Leasing a system binds you to the performance and service of one company for the life of the contract. With the many companies now offering a leasing program, make sure the company you choose is the right company for you. Read their reviews!
The Equipment is Mine… Right?
While the appearance may be that the equipment attached to your home is yours, it is not. You are just borrowing the system and paying for it over an extended time. Think about when it comes time to sell your home- what now? Know the facts and ask questions. If you are comfortable with the end of lease options and love the idea of having no worry for the life of your system.. this is a plan for you!
- CON- What happens when you want to sell your home? Will the potential buyers want to absorb your monthly payments? Is the payout option going to be a hinderance to your home sale?
- CON- does your homeowner's insurance cover potential damage to the leased units? What happens in the event of hail, fallen tree, accident? Your leasing company will hold you responsible. Repairs on your contract do not mean physical damage. Repairs mean mechanical problems associated with routine wear and tear, and so forth. Make sure you homeowners insurance does cover your HVAC system.
- CON- You may not own the unit, but you are responsible for it. Just like when you lease a vehicle you must cover the damage from an accident, same applies to your new leased system. Read your contract and know where your responsibility begins and ends.
The Lease is Up, What Now?
Have you read your contract? Unlike a HVAC system you purchased through financing, a leased system at the end of the term does require some action. Whether you buy that system at a discounted rate, or get a brand new system with the same payment options, you do have to perform an action. The benefits are getting a new high efficient system. The cons may be that you are not wanting to commit again. That is where the buy out comes into play.
Do You Get to Pick Your System?
The main reason you need a new system is to keep you comfortable right? The type of system you install is important. Brand is important. The installation process is key. Research the various brands and companies to make sure the product you choose is right for you. Most importantly, the system you choose will be heating and cooling your home for years to come. Is it efficient? Does it solve problems in your home with air flow? How about those utility costs? Each company will utilize their preferred brand.
But I Get to Save Money Right? Think Again!
The fact of the matter is that when you lease your HVAC system you may end up paying more upfront. But the benefit to consumers is no out of pocket expenses the whole warranty. When you purchase a system outright, you will ahve maintenance and repair costs. This is also inevitable. Leasing or buying.. these are preferences that we find are solely based on ones lifestyle and financial goals.
Bottom Line…. get multiple estimates to no throw your money away and be bound to a sub par company. Interview the sales team and learn about the values of the company. How is the installation process? Read the company reviews. Most importantly, figure out what the system is going to cost you through its lifetime.
Guardian offers a variety of financing options to make a new system affordable and one that you OWN! With no upfront costs, a variety of system options, solutions to your comfort needs and a top notch team of installing experts! Contact Guardian today to schedule your free in home estimate.
