Benefits of Owning vs Leasing an HVAC Unit

Debating whether to buy or lease your new HVAC unit?

To help you decide, we’ll go over the benefits of leasing HVAC equipment:

And the benefits of owning HVAC equipment:

• You own the system
• Some rental plans aren’t worth the cost in the long run

We’ll cover each benefit in more detail.

Leasing your HVAC system means you don’t pay anything upfront. You’ll only have to pay a low monthly payment after your unit is installed.

When you buy a new HVAC system, you’re responsible for the full cost of the unit at the time of installation.

While many HVAC companies offer financing plans, you’ll likely pay more each month in financing than you would if you lease. Plus, you may end up paying more than expected in interest.

Most HVAC companies include free lifetime maintenance and repairs on leased heating and cooling systems. Since the average cost of an AC repair is $450 and furnace repair costs can exceed $900, you could save yourself a lot of money in repairs by leasing your HVAC equipment.

If you buy your HVAC system, you’re responsible for the cost of those repairs unless they’re covered under your parts or labor warranties.

Even if you have a home maintenance program, which usually includes discounted repairs and maintenance, you’ll likely still have to pay a chunk of money out of pocket.

If you’re moving and your HVAC lease is still in effect, most HVAC companies will transfer the lease to your new home. This saves you from having to break your lease or buy a new HVAC system at your new place.

If you own your HVAC equipment and want to move, you’ll have to leave the system behind, as it was sized for that home and likely won’t fit the new one. You’ll need an HVAC tech to come measure what size HVAC system your new home needs.

When you buy a new HVAC system, you now own that system—or you will after paying off the financing. That means the system is yours to upgrade or sell as you wish once it has outgrown your home.

Leasing an HVAC system means that the system is never really yours unless you decide to buy it outright after your lease ends (if the company even offers that option). Until then, it’s property of the HVAC company you’re leasing from.

Depending on the type of system you’re looking at, leasing could cost you more in the long run.

HVAC equipment leases promote low monthly rates, which look cheaper at a glance. However, those payments add up over time, which could lead you to pay more than you would if you had bought the system.

Plus, you’ll pay more if you:

• Need to break the lease early
• Choose to buy the unit after your lease is up