Should I Repair or Replace
Your air conditioning and heating system can be one of the most expensive purchases you make in your home. There are many factors to consider when determining whether or not you should repair an old unit or replace it, such as the age of the unit, overall investment costs, from initial purchase price to long term operating costs, and utility rates. To help determine whether or not you should keep your existing system, we’ve created a sample scenario to help you make your own analysis and decision.
What is the Cost of Keeping Your Existing System?
Some homeowners may feel “if it isn’t broken, don’t fix it.” Here are some often-overlooked considerations. Sometimes you put multiple repairs into a system that is on its last legs. As of January 2006, new air conditioner efficiency standards came into effect. Most systems installed before this date cost up to 20% or more to operate than today’s base efficiency models. As of January 2010, Canadian government banned the use of Mid Efficiency Furnaces. Any furnace available in market now are High Efficiency, 90% or higher.
If you agree that SOONER or LATER you will have to replace your air conditioning or heating system, so let’s say you might get another 5 years out of your existing system.
If you invest in a new system TODAY Vs 5 years from now..
| Your new system will cost you………………………………………………………………………………………… | $ 6000 |
| Your repair costs over the next 5 years will be a minimum of ……………………………………….. | $ 1000 |
| Your utility costs over a one year period ……………………………………………………………………….. | $ 2000 |
| On average, about 2/3 of your utility cost is for heating and cooling your home, | $ 1333 | |
| Depending on the type and age of your system, it is possible for you to save up to 20% or more on your utility cost, 227X5= |
$ 1335 | |
| In 5 years, how much more would you expect to pay for a new system? | 10% more | |
| Invest in a new system now: | ||
|
Today’s Investment |
$ 6000 | |
|
Repair Savings |
$ 1000 | |
|
Utility Savings |
$ 1335 | |
| If you Invest Today, your projected “Out of Pocket” after 5 years | $ 3665 | |
| Or, if you wait 5 years to Invest (Today’s price plus inflation) |
$ 6600 | |
| Additional “Out of Pocket” after 5 years if you wait to invest | $ 2935 | |
| The approximate monthly investment (Approximate only, pending credit approval) |
$ 120 | |
| Monthly Savings (From repairs, utility and inflation savings) |
$ 49 | |
| Projected Monthly “Out of Pocket” | $ 71 | |
| Projected Weekly “Out of Pocket” | $ 17 | |
| As you can see, if you are already paying for a new system (through repair costs, higher utilities, etc) – it probably makes sense to get one installed! | ||
As you can see, if you are already paying for a new system (through repair costs, higher utilities, etc) – it probably makes sense to get one installed!
Other considerations
- How old is your current system?
- How long do you plan to stay in the home?
- How much will it cost to keep it going?
- How do your utility costs compare to similar sized homes?
Please contact us at 416-274-3583 or go to our contact us page to submit a contact request form.
