Not sure whether to repair or replace? Use our guide to determine the most cost effective decision
Determining whether or not your H.V.A.C system should be repaired or replaced is not always a clear cut choice. Factors to consider are: warranty, efficiency ratings, repair costs, installation costs, federal tax credits, energy rebates, how long one plans to remain in the home and financing options.
Step 1: Determine if your air conditioning system is still under warranty. Often times if a system is out of warranty, it makes most fiscal sense to replace.
Step 2: Review what has been repaired or replaced over the years and estimate additional repair costs for an old system.
Step 3: Use our energy savings tool to determine monthly savings on utility bills by installing a new air conditioner.
Step 4: Determine any local or federal tax credits or energy company rebates you may qualify for.
Step 5: Investigate financing options and subtract the estimated utility savings from monthly payment to determine actual monthly out of pocket expense.
Step 6: Compare monthly out of pocket expense to repair cost.
If you prefer a calculation that can be used as a good guideline, you can take the COST OF REPAIR X AGE OF EQUIPMENT. If that calculation exceeds the cost of the replacing your air conditioning system, it is a good idea to replace.
Why a homeowner should replace an air conditioner that is out of warranty...
There is a much better idea of expected costs. Nothing guarantees an old system from failing a part every other month. Future repair costs on an out of warranty system come with a really big question mark. Over the next couple of years, it could cost nothing and it could cost several thousand dollars. With a new system, you have peace of mind and are less likely to deal with sudden, unexpected and substantial costs.