Home & Garden

Reliance water heater buyout

  • Last Updated:
  • Sep 26th, 2016 2:37 pm
Tags:
None
Deal Addict
User avatar
Jan 6, 2002
4705 posts
4640 upvotes
Toronto

Reliance water heater buyout

The previous owner of my house had Reliance Home Comfort put in a new 40 gallon conventionally-vented hot water heater in March 2011. I have thus allegedly assumed a perpetual rental obligation or around $15/mo.

The representative also indicates there is no written contract as part of the installation/rental agreement, only verbal. The tank works fine, but I would like to get out of the rental. Reliance indicates the buyout price will be $860 once it's been installed for a year.

The representative indicates there is no cancellation option -- I must either buy it out, or continue paying the monthly fee. Based on the straight math, the break-even point is around five years. The tank appears to be an OEM Rheam 40-gallon model, thought I have no idea what the warranty might be if I buy it out.

Should I buy it out (cashflow not a problem.) Is their claim that there's no concellation option accurate?
Yes, Here's to the few
Who forgive what you do
And the fewer who don't even care.
48 replies
Deal Addict
Oct 15, 2007
2471 posts
75 upvotes
If there's no signed contract then he's trying to trick you into thinking you are obligated to them
Don't buy into it
Everything has been said before, but since nobody listens we have to keep going back and beginning all over again. - Andre Gide
Deal Addict
Apr 9, 2008
2358 posts
133 upvotes
Toronto
Reliance keeps increasing the rate.
It was less than $19/month in 2008 and now it is $26/month.
Deal Addict
Oct 29, 2007
1548 posts
222 upvotes
I had a rental unit from them also and I bought it out just before HST kicked in. I was really fed up with them increasing the prices constantly. Initially, I was thinking
of returning the unit which was about 2 years old, but realized it would cost me more to have another one installed. My HVAC guy recommended that I buy
theirs as theirs is a better quality unit than the ones I can get from HD or Lowes.
So far in more than 2 years, it has been running trouble free and I have recoup $600 of the $1100 I paid them to buy mine. Mine is the 50 gallon power vented unit.
If this thing runs trouble free for another 2 years, then I have made all my money and then some.
I will never rent these anymore as they are huge money grab for these companies. So I recommend buying out your unit as it may cost you more to return
the unit, buy a new one (maybe with inferior quality) and pay a large some to be installed.
Deal Addict
User avatar
Nov 18, 2007
3329 posts
383 upvotes
Valleywood
OP, no written contract in the previous owner's name?

Install your own tank.

Tell Reliance to come and get their tank.
Deal Addict
User avatar
Jan 2, 2012
1228 posts
323 upvotes
KINGSTON
They are trying to get you to shut up, go away, and keep paying a rental fee.

Normally, Reliance has a $40 'cancellation' fee, plus they charge you a $65 fee to pick up the tank. At least the was the scenario I encountered. My guess is that they no longer want a bunch of used tanks that they can't reinstall elsewhere (I believe there has been changes to the Code in regards to installing used combustion appliances, but I may be wrong).

That said, $860 for your tank is not a bad price. Buy the tank and say good riddance to them. I'm sure you've done the math on this, and the "keep paying forever" is not a wise choice.

BTW, You are NOT getting a "better" tank from them, despite what other posters have been told, or what you may have been told by the Reliance CSR.

Please read up on hot water tank anodes. It will extend the life of your tank substantially.
Cheers.
Deal Addict
User avatar
Jan 2, 2012
1228 posts
323 upvotes
KINGSTON
bsobaid wrote:
Feb 24th, 2012 3:58 pm
Reliance keeps increasing the rate.
It was less than $19/month in 2008 and now it is $26/month.
So why are you still renting a hot water tank???
DO THE MATH.
Newbie
Mar 7, 2013
1 posts
London
I have recently purchased a house with a reliance hot water heater.... After 1 and a half years it gave up on me. I disconnected and drained the unit myself and called reliance to come pick it up. They have now sent me a bill for 125 dollars for the pick up of THEIR property. I dont feel i am responsible for having to pay this. They are now trying to send my account to collections. Which i am still saying that i am not going to pay. I just wonder if this is going to affect my credit rating at all? Any help?
Deal Addict
Aug 14, 2007
2242 posts
160 upvotes
Waterloo
When I bought my home 3 months ago previouis owner had reliance, but it was just in a month to month contract. I had 3 options, continue. buying it out (850) or cancelling my account for about $75 (forgot exact amount) + a pickup fee (or I could drop it off myself for free)
I opted to buy it out as installing my own was going to cost about 1800 all said and done. The tank was only 6 years old
Deal Fanatic
User avatar
Nov 13, 2005
5670 posts
162 upvotes
GTA
Last time I spoke to a relaince CS rep she insisted that Reliance does not have anymore contracts with home owners. So I asked them to quote me a 60 & 75 Gallon tank as the builder installed 50 gallon is just utter crap. The rep told me that because of the new code to PVC piping it would cost $179 + the monthly rental. When the tech arrived, he said the $179 was only good for 10 feet of piping. As per his measurements, it was 10'6" piping and thus that $179 ballooned to $800. Lucky I had the rep's nameand direct phone number as I told her and her contractor to take their contract and shove it up their arses!!!!
Deal Addict
May 18, 2005
2623 posts
137 upvotes
I just bought out a brand new heater from reliance for 1390 plus tax. It's a 50 gal PV unit. So their price seems not too bad considering similar unit from home Depot is around 900 and installation is another 400.

OP I think you should buy it out as others have said the 860 is not a bad price. Save you the hassle to get it removed and install a new one.
[OP]
Deal Addict
User avatar
Jan 6, 2002
4705 posts
4640 upvotes
Toronto
LoveRFD wrote:
Mar 9th, 2013 10:01 am
I just bought out a brand new heater from reliance for 1390 plus tax. It's a 50 gal PV unit. So their price seems not too bad considering similar unit from home Depot is around 900 and installation is another 400.

OP I think you should buy it out as others have said the 860 is not a bad price. Save you the hassle to get it removed and install a new one.
Just to follow up, I did buy out the tank in March 2012 (around $1000 all in for a relatively new passive-vent 40gal gas fired heater.) The contract of sale for the property did contain an assignment clause for the contract.
Yes, Here's to the few
Who forgive what you do
And the fewer who don't even care.
Deal Addict
May 18, 2005
2623 posts
137 upvotes
hoob wrote:
Mar 9th, 2013 12:10 pm
Just to follow up, I did buy out the tank in March 2012 (around $1000 all in for a relatively new passive-vent 40gal gas fired heater.) The contract of sale for the property did contain an assignment clause for the contract.
Lol didn't notice it was a year old thread.
Sr. Member
User avatar
Aug 21, 2008
877 posts
343 upvotes
Ancaster
They increase the monthly rental fee every year. AFAIK, it's more than 2% each and every year. It's a good decision to BUY your own water heater. I'm in the process of cancelling my contract and their buyout price for a 15 yr old tank was ridiculously high. No more quarterly bills, password to remember, getting sales calls, and no more sales folks. Yay!
× < >

Top