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Renovating and Direct Energy wants $1000k+ to cancel rental on hot water tank!

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  • Jul 31st, 2015 3:12 pm
[OP]
Jr. Member
Jul 3, 2011
128 posts
49 upvotes
Toronto

Renovating and Direct Energy wants $1000k+ to cancel rental on hot water tank!

Any way out of this? I have a 2 year old rental tank as my old one was ruined after a flood. We will be undergoing renovations in the next year and I called Direct Energy to inquire what will happen to the tank. I was told my only option is to buy it out for over $1k! Now, if I would still need the tank this wouldn't be so bad, however I intend to switch to a 75 (from a 50) with a period of 10 months where I will need no tank at all during the renovations. I have absolutely no need for this old tank. Do I have any options here?

Thanks.
19 replies
Deal Fanatic
Apr 20, 2011
7747 posts
2737 upvotes
ON
You're SOL. Contracts after 2010 have only buyout as an option, and they set the price.
[OP]
Jr. Member
Jul 3, 2011
128 posts
49 upvotes
Toronto
Thanks.

What if I don't buy it out? I just continue paying a rental fee even though it's now in a dump somewhere?

What can I do with it if I do buy it out? Is there a 3rd party market for these?
Deal Addict
User avatar
Dec 16, 2007
3906 posts
1027 upvotes
Toronto
They want 1 million to cancel your contract? That's crazy
Deal Fanatic
Apr 20, 2011
7747 posts
2737 upvotes
ON
Jamal79 wrote: Thanks.

What if I don't buy it out? I just continue paying a rental fee even though it's now in a dump somewhere?

What can I do with it if I do buy it out? Is there a 3rd party market for these?
If you don't use it, you'll want to buy it out. And try and sell the used tank on kijiji or something.
If you don't buy out, you'll be paying $30/month forever for something you don't even use.
The sooner you buy out, the better off you will be.

Even if you do keep it and continue using it, you're better off buying out ASAP
That's $300 for 10 months you're not even using a water heater at all - 1/3 the cost already.
Member
Apr 21, 2012
363 posts
112 upvotes
Toronto
just got a quote to buy mine out, also 1000$ but my tank is 6 years old, crazy !!
[OP]
Jr. Member
Jul 3, 2011
128 posts
49 upvotes
Toronto
aqnd wrote: You're SOL. Contracts after 2010 have only buyout as an option, and they set the price.

Thanks.
I'm seeing that now. The irony is that I had no intention of replacing my 10 year old tank except that DE required me to do so once there was a flood. I actually had to buy it out at the time and was reimbursed by insurance. Had I not done this, I would have now been eligible to cancel under the old terms and simply pay $75 to have DE pick it up. I don't recall them telling me anything at the time about how I'm now bound by these new draconian terms and conditions.

Furthermore, I'm now considering not using DE when I need to purchase (or rent) a new bigger and more expensive tank once the renovations are complete. These terms and conditions were apparently designed to prevent customers from leaving to the competition. Well, that is not my scenario. I simply no longer need the product as I need a bigger (more expensive) model. There should be an exception for customers looking to upgrade or switch to another equivalent DE product.
Deal Addict
User avatar
Nov 9, 2003
2689 posts
282 upvotes
I had to pay 1200 to have a new gas tank installed so getting out for 1000 isn't bad, if you need the tank
Deal Addict
Aug 16, 2009
1684 posts
706 upvotes
Toronto
Don't think you really have a choice. I bought mine out for around $1400.
Newbie
Sep 26, 2010
1 posts
Stoney Creek
I have a Rinnai R75LS, installed in July 2011 (4 years ago). Direct Energy/EnerCare wants $2805 as a buyout. I pay $44.06 a month currently for rental.

Any suggestions? Thanks.
Member
Apr 27, 2015
249 posts
140 upvotes
Toronto, ON
So is the general rule the newer the tank is the more expensive the buyout is going to be?
Deal Addict
User avatar
Dec 31, 2011
2715 posts
968 upvotes
Yellowknife
OP, it sounds like it is cheaper to keep the rental tank. When renos are finished, ask Direct Energy if the rental tank is up to current codes. If not, they will upgrade you to current rental tank standards for free. That's what we did and we are saving on energy costs with the upgraded rental.
Deal Addict
Dec 17, 2007
2624 posts
1615 upvotes
Alliston, ON
Did you ask DE if they well exchange the tank for a larger model? Unfortunately you'd still be locked in a rental.
Newbie
User avatar
Oct 30, 2014
32 posts
Toronto, ON
Call DE and check what your contract date is. Every year the buyout price drops on this date - it makes sense to wait for a few months in order for a price to drop $100 or so.
Deal Fanatic
Apr 20, 2011
7747 posts
2737 upvotes
ON
Hasten wrote: it makes sense to wait for a few months in order for a price to drop $100 or so.
No.
Spend $100 for a 'few months' rental fee to save $100 on buyout.. net savings, $0.

If you plan to buy out, it never pays to wait. Unless maybe you're 1 month away and you know the drop is going to be more than the $30 you'll pay in the meantime.
But a few months is not worth your time or hassle
Deal Addict
Apr 22, 2014
3097 posts
472 upvotes
Oshawa, ON
This is a simple calculation.
PV of infinite rent paid until buyout ~ 0 vs current buyout.
If PV > buyout now, then buyout now.
Almost ALWAYS, this is the case. This mean almost ALWAYS, you should NEVER rent.
If you need a new tank, buy new tank, buy out old; it's a sunk cost.
Deal Addict
Apr 26, 2003
2310 posts
1376 upvotes
GTA
I just bought my tank from DE earlier this year. $56 for a 15 year old tank. It's due to be replaced, but I wanted to buy it out before they locked me into another rental contract. I was paying $16/month since we bought the house new and it was installed.
Deal Addict
Feb 5, 2009
2407 posts
369 upvotes
schade wrote: Did you ask DE if they well exchange the tank for a larger model? Unfortunately you'd still be locked in a rental.
Yeah that was my first thought...put the tank aside for 10 months and keep paying the rental. Then after 10 months call and say you want a 75 instead. Last time I did this it was a free switch.
Deal Addict
Jul 6, 2005
4291 posts
1894 upvotes
Toronto
$1000k = $1,000,000 !!!

I can't believe they're charging so much!! That must be a pretty impressive home renovation if your tank alone is worth a million bucks!
Deal Addict
User avatar
Nov 15, 2005
4337 posts
2150 upvotes
When I called them a few years ago, they wanted to charge me $75 to return the tank. Note that they wanted me to return it and pay $75, I ended up buying it out.

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