Leasing is no longer limited to automobiles. You can now lease other products, including heating, ventilation and cooling (HVAC) equipment. Many HVAC companies, for instance, offer lease plans for furnaces and AC systems. Rather than buying a new furnace or AC system for your home, you can lease it.
What Is HVAC Leasing?
HVAC leasing is the equivalent of renting HVAC equipment. You’ll have to sign a contract agreeing to pay a specific amount – typically each month – to use the HVAC equipment. The lessor will then loan you the HVAC equipment. As long you make the necessary payments, you can continue to use the HVAC equipment in your home.
When compared to buying HVAC equipment, leasing it may sound like an attractive alternative. You won’t have to purchase the HVAC equipment up front. Some HVAC companies, in fact, may offer deferred payments, meaning you won’t have to make payments until after the HVAC equipment has been installed.
Most leases also cover the cost of repairs and maintenance. If the HVAC equipment stops working, or if it requires maintenance, the lessor will cover the cost of it. While leasing HVAC equipment may sound beneficial, though, you should think twice before signing a lease.
Higher Cost Over Time
While you may initially save money by leasing HVAC equipment, you’ll almost certainly pay more over time. HVAC leases are long-term contracts. You’ll have to make monthly payments for several years. And at the end of the contract, you’ll typically have to pay to purchase the HVAC equipment or renew the lease.
Lack of Ownership
You’ll never actually own your HVAC equipment if you lease it. Leasing is a rental agreement between a lessor and lessee. Without ownership, leasing your HVAC equipment can cause a headache if you try to sell your home. You can avoid this issue by purchasing your HVAC equipment. After purchasing a new furnace or AC system, you’ll own it.
HVAC Equipment Already Comes With a Warranty
It’s also worth mentioning that new HVAC equipment already comes with a warranty. Leasing, of course, means you won’t be responsible for paying for repairs. But most new furnaces and AC systems are already covered by a manufacturer’s warranty. You can buy new HVAC equipment without fear of having to pay for repairs. If failure occurs during the warranty period, the manufacturer will pay to repair it.