Renting Vs Buying A New Furnace: A Homeowner’s Guide

Are you in the market for a new furnace? One major decision homeowners face when upgrading their HVAC system is whether to rent or buy a new furnace. With many of our clients asking the same question, we’ve put together this blog to help you compare both options. Here, you’ll find everything you need to know about pricing, ownership, maintenance and repairs, energy efficiency, and how your choice can impact your home’s resale value, so you can make the best decision for you and your family.

Let’s dig in then shall we…

The Comparision: To Rent Or To Buy

1. Upfront Costs: Immediate Financial Impact

Renting a Furnace

One of the major selling points of renting a furnace is the low upfront cost. You do not have to worry about the initial investment in renting. The monthly payments often cover the installation and even the regular maintenance and repairs. This makes it quite an attractive option for homeowners who do not have the immediate funds required to pay for a new furnace.

But while renting may sound a little more affordable up front, those monthly payments will certainly add up over time. In most instances, after a rental agreement of 12 to 15 years, you will find yourself having paid way more than the furnace’s cost, while not being able to own the unit at the end of the contract.

Buying a Furnace

Admittedly, buying a furnace will cost more upfront, which may be daunting for most. At North Wind HVAC, however, we can make the process easier with financing options available to our customers. Once purchased, the furnace is yours, and there are no ongoing rental payments to worry about. This upfront investment quickly pays off in the long run.

Verdict: Although renting is highly attractive to individuals who don’t want to pay a huge upfront cost, buying in the long run is cheaper.

2. Long-Term Costs: What You Pay Over Time

Renting a Furnace

Renting usually means fixed monthly payments. Still, those payments are structured to cover the unit cost, any potential repairs, maintenance, and some profit for the rental company. If you rent for a normal term of 12 to 15 years, you could easily pay a few thousand dollars more than it would have cost to simply buy a new furnace outright. It doesn’t stop there, many rental fees increase every year, which raises long-term costs a lot higher.

At the end of the rental term, you’ll face the decision of whether to renew the contract, pay a buyout fee to own the furnace or have the unit removed, none of which is ideal when compared to the freedom of owning your furnace.

Buying a Furnace

The benefit of investing in a furnace outright is the long-term savings. Other than an initial purchase, all one would have to worry about will be maintenance and perhaps the occasional repair. A good number of homeowners save considerable sums of money within a couple of years after owning their furnaces.

Verdict: Owning one in the long run is way more budget-friendly, bringing a number of considerable cost-saving advantages over renting.

3. Ownership and Flexibility: Who Controls the Furnace?

Renting a Furnace

The major disadvantage is that you do not own the unit when renting a furnace. At the end of the rental contract, you are given very minimal options. You can renew your lease, or pay a buyout fee to the company for the furnace, or return the furnace to the rental company.

In addition, rental agreements often limit your choice of HVAC service providers if you need to have repairs or maintenance done. If your rental company responds slowly during an emergency or peak season, you’re stuck waiting.

Buying a Furnace

When you buy a furnace, you actually own it. You are entirely in control when it comes to your heating system, and that gives you the ability to choose the best service provider. Owning a furnace adds resale value to your home and makes it more sellable. On the other hand, a furnace rental contract may be a liability in such a case since buyers would not want to assume a rental agreement.

Verdict: Buying gives you more control, flexibility, and long-term value while renting leaves you with limitations and higher costs without ownership.

4. Maintenance and Repairs: Who Handles the Hassle?

Renting a Furnace

One of the big selling features of renting a furnace is that maintenance and repairs are included in your monthly payment. If your furnace breaks down, the rental company usually covers the cost of repairs, which can be a load off your mind. However, this also means you’re dependent on their schedule, and their responsiveness may not always be as quick as you may like.

Buying a Furnace

When you buy a furnace, you take on a certain amount of responsibility to maintain it, but it doesn’t have to be a burden. Here at North Wind HVAC, we can offer you a furnace maintenance program that keeps your furnace in optimal working condition through regular inspections and timely furnace repair, if necessary. With a high-efficiency unit that is highly reliable, the general maintenance needs over the first several years will be pretty minor.

Verdict: While renting does include maintenance, buying with a proper service plan certainly gives you greater flexibility in having more control over the repairs with no ongoing rental fees.

5. Energy Efficiency: Save on the Environment and Costs

Renting a Furnace

Rental companies may also offer newer, more energy-efficient furnace models that could help lower your energy bills. However, you may have less say in what model you receive, and your options might be limited by what the rental company offers.

Buying a Furnace

When you’re buying a furnace, you are free to choose the most efficient model within your budget and specific home needs. An energy-efficient furnace can make quite a difference to both your environmental footprint and your wallet. Modern systems are designed to last for decades, meaning you benefit from those savings for a very long time.

Verdict: Buying lets you choose the most efficient unit for your house, allowing you to save the maximum amount on energy bills.

6. Resale Value and Home Equity: How Your Decision Affects Your Property

Renting a Furnace

One possible disadvantage of renting your furnace is that the concept might decrease the resale value of your house. New purchasers will be wary about taking on a rented furnace because it is an additional cost. As a matter of fact, in some instances, some purchasers may demand that you pay for your rental agreement in advance for your home.

Buying a Furnace

Owning a furnace adds value to your house. Potential buyers are much more attracted to those houses that have an owned, well-maintained HVAC system. A decently efficient furnace has an additional advantage over other real estate properties and may make selling your house easier, probably at a better price.

Verdict: Buying a furnace pays more in adding value to your home and making it more desirable for any future buyer.

Why Buying a Furnace Beats the Purchase

At North Wind HVAC, we believe buying a new furnace the the best decision for Ontario homeowners. Though rental seems to be a good option since there is a lesser upfront cost involved in it, this option would be less favourable due to the drawbacks involved, such as long-term financial burden, limitation of ownership, and restricted terms according to the contract.

Are you ready to invest in a new furnace? Shop a new furnace online with North Wind HVAC, we will deliver and install your new unit so you can sit back and relax!