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Furnace Rental in Toronto | Does it pay to rent a furnace?
To rent a furnace is a very costly long term commitment. At the cost of furnace rental you can finance a new furnace on your gas bill every 3-5 years. Rather than to rent a furnace, you will save if you get financing on the gas bill and buy a furnace .
At the first glance furnace rental appeals since it promises free repairs and free maintenance. On the other side, furnace financing on the gas bill at 17% appears very expensive. Numbers tell a different story.
At the time of writing (01-2009) you can rent a furnace GKS9 furnace for $39.99/month. This is a basic high efficiency gas furnace. Top of the line GMV95 furnace is renting for $49.99 per month. Does not sound too much, but the numbers add up.
Also, wether you buy or rent a furnace, you will get Rebates. GKS9 comes with $700 in Rebates. GMV95 gets even more - $1,225.
At the first glance furnace rental appeals since it promises free repairs and free maintenance. On the other side, furnace financing on the gas bill at 17% appears very expensive. Numbers tell a different story.
At the time of writing (01-2009) you can rent a furnace GKS9 furnace for $39.99/month. This is a basic high efficiency gas furnace. Top of the line GMV95 furnace is renting for $49.99 per month. Does not sound too much, but the numbers add up.
Also, wether you buy or rent a furnace, you will get Rebates. GKS9 comes with $700 in Rebates. GMV95 gets even more - $1,225.
It's much cheaper to finance a furnace on gas bill than to rent a furnace
Rental Furnace option is compared with Financing Furnace option in the spreadsheet. A link to download a spreadsheet and to run the numbers is below The numbers are showing that:
♦ Rental and financing payments are the almost the same.
♦ If you choose financing, you can finance a new furnace every 5 years.
♦ If you choose cash purchase, you can buy yourself a new furnace every 3 years.
♦ If you rent a furnace, in theory you have a buyout option. The problem is that you do not have an option to bargain on price. You will end up paying whatever furnace rental company orders you to pay plus a penalty.
Is it worth to have an option of free repairs of 15 year old rental furnace, if you can own a new furnace every 4-5 years for the same money?
Feel free to put your numbers into the spreadsheet.
♦ Rental and financing payments are the almost the same.
♦ If you choose financing, you can finance a new furnace every 5 years.
♦ If you choose cash purchase, you can buy yourself a new furnace every 3 years.
♦ If you rent a furnace, in theory you have a buyout option. The problem is that you do not have an option to bargain on price. You will end up paying whatever furnace rental company orders you to pay plus a penalty.
Is it worth to have an option of free repairs of 15 year old rental furnace, if you can own a new furnace every 4-5 years for the same money?
Feel free to put your numbers into the spreadsheet.
