Many people are looking for a bargain when they shop. Hence, we have Walmart and Costco.
But, nobody likes to read the fine print. So, when it comes to getting a new furnace they don’t like to read the fine print. When I say fine print, I mean that part of the contract reproduced in 4 or 6 point print, so it will be difficult for anyone to read without glasses and a magnifying glass,
Here’s the problem:
Furnace installation cost is $6,000.00. That’s the price, if you buy it.
But, if you simply rent it, you will have your monthly payments plus a provision that if you buy it, that will cost you $12,000.00.
You can see that the Company wants you to “rent” under just about every set of circumstances. In fact, as an incentive, you don’t have to make any payments for the first 6 months. How attractive is that! No payments plus a new furnace and you are planning on selling in the next three months.
Upon the sale, you would have to buy out the furnace at $12,000.00 in order to effect the sale, unless you can convince someone to take it over.
That might be the case if you have 20 bidders. But, if you only have one purchaser, then they will not want to pay $12,000.00 extra for a $6,000.00 furnace.
And, by the way, if you had done just a little bit of shopping you would have found many (yes, many, not some) installers who would provide that same furnace for $4,000.00.
If you are selling your house:
- Shop for competitive quotes
- Buy the furnace, don’t rent
- If you don’t have the money, borrow it.
Most purchasers are far too astute to pay an extra $12,000.00 for a $4,000.00 furnace.
Brian Madigan LL.B., Broker