Should we get a new furnace/AC?

December 16, 2008 6:43 PM

Should we replace our furnace and AC and go with this company's maintenance agreement/guarantee?

We live in Marietta, Georgia. We have a 20-year old Trane furnace and a
16-year old Carrier AC that heat and cool our house adequately.

The furnace inducer motor has failed. We can replace it for around $500.

We’re also being offered a full furnace, coil, and AC installation -- same
capacity -- for $5000 that includes:

1. Maintenance and 24/7 service contract: first year free, subsequent years $150 (subject to increase every 5 years)

2. Guarantee: Comprehensive, transferable lifetime guarantee if we keep up the maintenance and service contract

The company also estimates we'll achieve a 30% increase in efficiency.

It's a 50-year outfit. The deal is endorsed by two of our neighbors, an
architect and a retired home renovator.

Should we bite?

posted by SallyHitMeOntheHead to home & garden (7 comments total)

You'll save a ton due to efficiency upgrades in the past 20 years.
posted by notsnot at 7:20 PM on December 16, 2008

Yeah, you'll actually get that 30% increase from any competent installer on any brand of equipment - there was a government-mandated 30%-minimum efficiency increase on all U.S. air-conditioning equipment manufactured after 2006. Who makes the system that you're looking at?

In general, a late-eighties furnace is reaching the end of its planned lifetime, so it would probably be a good idea to go ahead and take the more efficient new system. Maintenance contracts are priced to make money for the dealer, but will save trouble if something actually goes wrong, particularly if you have a manufacturer and/or contractor who will only honor the guarantees if you can demonstrate proper maintenance (and it sounds like you might). Check out the installer's local reputation if you can - the Atlanta metro's particular combination of size, humidity, and sprawl makes it one of the biggest air-conditioning markets in the world, and you get a certain amount of fly-by-nighters. A "50-year outfit" sounds promising, though.
posted by ormondsacker at 8:07 PM on December 16, 2008

I'm not sure which direction I'd go, but I'd consider a few facets of the situation that you haven't mentioned.

I'd ask whether the 30% improvement applies only to the AC, because I don't believe the efficiency of better-quality furnaces has improved by that sort of margin in the last 20 years.

I'd do some quick calculations to estimate how much my energy bill might drop, and then think about whether I intended to stay in the house long enough for the service plan to be meaningful and the increased efficiency to make the big up-front cost worthwhile. As Ormondsacker points out, the service plan is designed to make money for the service company. It's an insurance policy, designed to save you from worry about large, unexpected repair bills, not to save you money overall. It's unlikely that maintenance during the first six years would consist of more than annual changes of the air filter and a few minutes of vacuum-wielding. For this, and a little peace of mind, you pay another $750.

I'd consider the reputation of the new equipment manufacturer, since you haven't specified the brand.

I might also get a competing outfit to bid on the project.
posted by jon1270 at 4:20 AM on December 17, 2008

Thanks for your answers so far.

The company will install a Trane system.
posted by SallyHitMeOntheHead at 4:50 AM on December 17, 2008

How much electricity (kWh) do you currently use over the course of a year, and how much during a typical winter month when you're not using the A.C.?

How much gas (mcf or ccf) do you currently use over the course of a year, and how much during a typical summer month when you're not using the furnace?

How much will those annual maintenance costs go up after 5 years? After 10?

Only with numbers like these can you even guess at whether it's better to repair or replace right now.
posted by jon1270 at 6:56 AM on December 17, 2008

You should replace the system. It's not clear to me what the pricing is for the system without the maintenance.

Get at least 2 other estimates.
posted by theora55 at 1:13 PM on December 17, 2008

Thanks, we went with the new furnace.
Good thing because today it's 16 degrees F. and we are toasty warm!
posted by SallyHitMeOntheHead at 6:14 AM on January 16