• Last Updated:
  • Apr 14th, 2021 8:51 pm
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[OP]
Sr. Member
User avatar
Jul 21, 2014
793 posts
120 upvotes
Canada

Furnace/AC Rental

My brother just recently moved into a condo in Mississauga last year and this year needs to replace his A/C and furnace combo. Purchase and rental amount is the same: $11k. I almost fell of my chair when he sent me the quotes but said due to the way the condo is designed they are specific to the condo unit and not the same as what you would get for a regular home.

He does not have the cash to purchase & wanted to go the route of rental. Depreciation is 8.9%, with a 84 month term and can payout the rental at any time without any fee/penalty.

I have heard never do rent-to-own for your furnace but why?
6 replies
Deal Expert
User avatar
Feb 11, 2007
16800 posts
18496 upvotes
Oakville
No, don't rent. Get a loan instead. Also, get multiple quotes.
If the women don't find you handsome, they should at least find you handy.
Penalty Box
Jun 24, 2015
5060 posts
1533 upvotes
0 downvotes
yup dont fall for rental.
Hi
Deal Addict
Jun 12, 2008
1222 posts
685 upvotes
Ripley
Rentals of furnace/AC/water heaters exist because they are extremely profitable for the company selling them.

He should purchase.
Deal Addict
Jun 16, 2009
2862 posts
1235 upvotes
Woodbridge
It's a simple answer to why ? Rental doesn't make financial sense. In good case scenario, you will pay at least 300% of the total price of equipment. As others have mentioned, you can look into getting a LOC and try to buy the equipment right upfront. If LOC is not available, there are many companies that can finance your equipment. Even though they charge higher interest, but it will still be much better than renting.
AchtungB4by wrote: My brother just recently moved into a condo in Mississauga last year and this year needs to replace his A/C and furnace combo. Purchase and rental amount is the same: $11k. I almost fell of my chair when he sent me the quotes but said due to the way the condo is designed they are specific to the condo unit and not the same as what you would get for a regular home.

He does not have the cash to purchase & wanted to go the route of rental. Depreciation is 8.9%, with a 84 month term and can payout the rental at any time without any fee/penalty.

I have heard never do rent-to-own for your furnace but why?
HVAC Professional. Committed to customer, not brand.
Furnace & Central AC Group Buy 2021
Deal Addict
Sep 13, 2016
2868 posts
1633 upvotes
Mississauga
Is both purchase as well as rental quote done by the same company? May be they did that intentionally to make rental look more platable. Also what kind of building is this. Don't condos usually have a fan coil unit instead of traditional furnace/ac combo we see in homes. I could be missing something here, but 11K sounds a bit too pricey.

P.S. A number of big box stores do loans for a reasonable interest rates. Even credit cards have balance transfer/cash advances for a small fee a number of times.

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