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Relance Compact Water Heater "Buyout"?

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  • Jan 20th, 2020 4:46 pm
[OP]
Member
Dec 11, 2004
332 posts
54 upvotes
Toronto, ON

Relance Compact Water Heater "Buyout"?

Hi everyone,

My parents and I have been renting the wall mounted compact water heater for 10 years now. It came new when the house was built in 2010. I haven't called Reliance yet, but wondering what the best path is that people face in this situation? Of course, I'm looking to now own instead of buy. I'm wondering if it's a matter of just going to HomeDepot and picking out one, have them install it, and get Reliance to pick mine up from curb? Is it better to buy from the hardware store and get another handperson to install?

Thanks.
8 replies
Deal Fanatic
User avatar
Oct 16, 2008
7187 posts
2111 upvotes
Maple
Best to buyout and get your own installed. For long run, it is better to own it.
Deal Addict
User avatar
Jun 24, 2015
3360 posts
784 upvotes
Woodbridge, ON
you might be in a 15 year contract like me, im 10 years into my 15 year contract and my cancellation is like over $1000, im gonna wait till it drops lower
Hi
Deal Addict
Nov 24, 2004
3941 posts
569 upvotes
Toronto
Does your water heater actually need to be replaced, or are you just looking generally to own vs. rent?

We bought out our water heater contract a few years ago. At the time, the buyout cost about the same as two months' worth of rental payments, so it was a no-brainer. We will need to replace it fairly soon, but in the meantime, it works.

It's worth calling Reliance to find out what you'd have to pay. You may also find that your inquiry leads them to offer you a discount or even a few free months (this happened to us too).
[OP]
Member
Dec 11, 2004
332 posts
54 upvotes
Toronto, ON
JHW wrote: Does your water heater actually need to be replaced, or are you just looking generally to own vs. rent?

We bought out our water heater contract a few years ago. At the time, the buyout cost about the same as two months' worth of rental payments, so it was a no-brainer. We will need to replace it fairly soon, but in the meantime, it works.

It's worth calling Reliance to find out what you'd have to pay. You may also find that your inquiry leads them to offer you a discount or even a few free months (this happened to us too).
Looking to own vs rent. It is working fine with no known issues. I forget what the agreement was but my parents called when we first got the house and it was not practical then to cancel. Now I'm taking over maintenance and related costs so figure it is worth looking into.

What's the street price of getting an new one installed in Scarborough?
Deal Addict
Nov 24, 2004
3941 posts
569 upvotes
Toronto
architect wrote: What's the street price of getting an new one installed in Scarborough?
That I can't answer. Call around for some quotes.

If you just want to own, probably best to buy out your contract and then you can wait until it actually needs to be replaced.
Deal Addict
User avatar
Oct 9, 2010
2647 posts
841 upvotes
Windsor
You've already paid for the unit many times over, and if anything, the last 5 years is the likely time when it might have issues. Depending on how bad your contract is, it might be worth it to get hosed for the next 5 years (say), vs getting hosed for two large amounts (the buyout + new unit and installation), or even just getting hosed to get off their contract. I will say, Reliance knows very well how reliable your unit is, and will not be offering a cheap buyout if they're confident it will not fail. If the buyout is reasonable, they probably expect it to fail in the near term, and are "encouraging" a buyout to relieve themselves of liability. Without knowing your contract specifically, what your installation looks like, or even what capacity unit you currently have is, nobody can give you a range any better than "It'll cost you between $1,500 and $10,000".

Good news is that you're already piped for this style of heater, so installation costs chould be minimal (might need to replace some vents or something). At that point, you're just looking at the cost of the unit, plus normal labour for install (a few hours).
One who is offended by truth, has no place among those who seek wisdom.
Deal Addict
Nov 30, 2003
2394 posts
683 upvotes
Nunavut
GoodFellaz wrote: you might be in a 15 year contract like me, im 10 years into my 15 year contract and my cancellation is like over $1000, im gonna wait till it drops lower
Why wait? Assume you pay around the average of $40/month.. that's $480/year, $2400 for 5 years

Meanwhile they might drop the buyout by about $100/year if you are lucky
Deal Addict
Sep 13, 2016
2135 posts
1047 upvotes
Mississauga
GoodFellaz wrote: you might be in a 15 year contract like me, im 10 years into my 15 year contract and my cancellation is like over $1000, im gonna wait till it drops lower
Try to negotiate. I recently negotiated for the tank previous owners of my home had installed by a rental company. Their original ask for cancellation was 600, and 2850 for a buyout. I gave then a counteroffer of 1200 plus hst for buyout and then eventually agreed for 1500 all in.
Edit: This was for a 5 year old rental contract. I am pretty sure at 10 yr mark, you could negotiate a buyout for a few hundred.

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