Should I rent or buy my next furnace?

Monday Feb 10th, 2020

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Should I rent my furnace and air conditioner? 

This is a common question that I get asked quite frequently. 
The short answer is no.

The longer answer is that while it is quite common in Ontario to rent a gas water heater, the practice of renting other items such as furnace, air conditioner, and water softeners is more recent. They were sold door-to-door often with high pressure tactics to older adults. 

This is the primary reason that door-to-door sales were banned.

What is the problem with rented appliances?
The challenge is that the rental contract usually exceeds the lifespan of the appliance, meaning that the renter is often paying out double or more than the value of the item over the course of the term. 
What's worse, when someone wants to sell their home, buyers are not accepting the rental contracts, meaning that they need to be bought out. We've heard of buyouts like those in this article of astronomical sums (in the article after paying more than $7,000 in rental fees in the last 4 years, the owner was informed that her buyout was $32,406!) 

So what should we do? 
Whenever possible buy or finance your new furnace, air conditioner and even hot water tank. Maintain them regularly (change filters regularly and have your ducts cleaned periodically) so that they last longer. Take advantage of resources like your TFSA to save for the next one. And when in doubt? Read very carefully through every single line of the contract.

 

 


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