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Around the Internet => Antimustachian Wall of Shame and Comedy => Topic started by: andrea-stache on August 06, 2014, 12:50:24 PM

Title: Finance your new HVAC...
Post by: andrea-stache on August 06, 2014, 12:50:24 PM
We got a flyer in one of those coupon packets (money mailer or something like that).  I always flip through them before tossing in recycle.   I saw one advertising HVAC systems.  I got a kick out of the line on the coupon for financing your HVAC for 120 months.   Really...people would finance something for 10 years??  Really? 

Maybe if you can't afford a new system, you shouldn't live there!
Title: Re: Finance your new HVAC...
Post by: Jack on August 06, 2014, 01:39:34 PM
I'd consider financing HVAC.... if it were something like a $20K geothermal system that I expected to provide a positive ROI (including finance costs).

Incidentally, what sort of interest rate were the offering (better or worse than a home equity loan)?
Title: Re: Finance your new HVAC...
Post by: AH013 on August 06, 2014, 03:20:11 PM
I'd consider financing HVAC.... if it were something like a $20K geothermal system that I expected to provide a positive ROI (including finance costs).

Incidentally, what sort of interest rate were the offering (better or worse than a home equity loan)?

I'm sure it's "0% interest" and even "We'll make your first 2 payments for you for free if you act now"....they'll just bake in a nice 18% rate into the quote.
Title: Re: Finance your new HVAC...
Post by: andrea-stache on August 07, 2014, 06:03:36 AM
I can't remember the 10 year rate...and I tossed it in recycle already.

The 12 months rate was 0%.  I was amazed that anyone would finance a system for 10 years.  By the time your done paying it, your almost going to need another one!
Title: Re: Finance your new HVAC...
Post by: Hunny156 on August 07, 2014, 11:51:54 AM
I have a friend w/a relatively new home.  Builder installed sub-par A/C system, which has been leaking coolant since just after the 5 year warranty was up.  Long term, they need a new A/C, best quote they got was $7K.  Short term, they add coolant every year, but that hasn't been working as well lately. 

She made a comment about "who has $7K lying around?" and got one of those home warranty plans.  Next year, when it stops cooling again, they plan on filing a claim and getting the warranty to cover the cost.

I smiled and nodded.  Hope that works for them...
Title: Re: Finance your new HVAC...
Post by: slugline on August 08, 2014, 08:05:13 AM
I wouldn't have gotten home warranty except my seller "gave" me one as part of the deal. I've only had one occasion this year to call in for service for a blocked drain. Thanks to the lovely fine print in the contract, it ended up costing me even more than if I had arranged for service myself in the first place.

Lesson learned. Needless to say, I am ignoring the renewal notice. I think it's much better to just save into a contingency fund.
Title: Re: Finance your new HVAC...
Post by: andrea-stache on August 08, 2014, 08:22:06 AM
I have a friend w/a relatively new home.  Builder installed sub-par A/C system, which has been leaking coolant since just after the 5 year warranty was up.  Long term, they need a new A/C, best quote they got was $7K.  Short term, they add coolant every year, but that hasn't been working as well lately. 

She made a comment about "who has $7K lying around?" and got one of those home warranty plans.  Next year, when it stops cooling again, they plan on filing a claim and getting the warranty to cover the cost.

I smiled and nodded.  Hope that works for them...

We have a neighbor who needed a new roof.  She posted something on FB about trying to get insurance to cover it because "who has $12K lying around?".  Funny how she phrased it exactly the same as your friend.  This neighbor has a kid in private school and drives two brand new high end cars.  I guess she would finance the HVAC....
Title: Re: Finance your new HVAC...
Post by: eyePod on August 08, 2014, 08:50:46 AM
I wouldn't have gotten home warranty except my seller "gave" me one as part of the deal. I've only had one occasion this year to call in for service for a blocked drain. Thanks to the lovely fine print in the contract, it ended up costing me even more than if I had arranged for service myself in the first place.

Lesson learned. Needless to say, I am ignoring the renewal notice. I think it's much better to just save into a contingency fund.

We got one included too because a lot of the equipment is pretty old. We're in the throes of saving up for them now. I would love it if they all died this year though since we'd just have to shell out a $100 deductible for each unit. I'm not sure if we'll renew it after the fact since it's somewhere along the lines of $500 per year. So I can pay them the same amount I would need for the water heater anyways? No thanks.
Title: Re: Finance your new HVAC...
Post by: Hunny156 on August 08, 2014, 02:24:36 PM
I've read so many horror stories about those home warranty programs, and it looks like they almost never pay out what you expect, and when they do, it's a huge fight and hassle, or they give you sub-par equipment.  From what I've heard, your best bet is to negotiate as much of a cash settlement as you can get, and then take that money to put towards the new whatever you may need.  It's never enough to cover a quality replacement.

The local realtors in our area are clearly in bed w/them.  When I sold my house, I was "lucky" that the buyer requested I cover the first $500 of the warranty, because having pool equipment makes those plans at least $800.

My other neighbor sold a few weeks later, no pool, smaller house (one A/C system instead of the two I had), same spiel, same $500 credit.
Title: Re: Finance your new HVAC...
Post by: millionaire-mindset on August 14, 2014, 03:19:26 PM
I am in sales for an HVAC company. My whole day is spent in neighborhoods with $500,000-600,000 homes who cannot afford to replace one (of their 3) HVAC systems. Constantly hearing "who has this kind of money sitting around" or "how are we ever going to pay for this". It is really pathetic. Meanwhile they have $75,000 SUVs in their driveway and kids at private school.

It is also sad when I go to a new homeowners house and talk to them about replacing their system. I am always hearing "I spent everything I had on the downpayment, I guess I will have to use a credit card or finance at 18%". People just have no idea!

Its always nice to go to a modest house and the customer is able to write a check like it was no big deal. Gives me some reassurance that the whole world has not gone to shit.
Title: Re: Finance your new HVAC...
Post by: notquitefrugal on August 26, 2014, 08:52:37 PM
I paid cash for my new mini-split HVAC. Confession: The sunroom that it was installed in is going on the HELOC, though.

My HVAC guy says that often, leaks can be detected and repaired without replacing anything.

I actually got a new roof paid for by insurance last year. The thing is, we get hail storms every couple of years in my area, and once your roof is marginal, even a mild hail storm will really cause a lot of damage, which triggers the insurance coverage. (The same storm would not damage a new roof, so I suspect I'm good for a while.) Called the roofer out to repair a leak, he said I had hail damage, called the insurance company, and they agreed. It was the least hassle I've ever been though in making an insurance claim.