Hvac Service Agreements, Before You Buy...Before you buy hvac service agreements, there are some basics you need to consider. All hvac systems require some routine maintenance. If you are willing to do it yourself, you can save a lot of money. There are many names for hvac service agreements such as hvac maintenance contracts, service agreements, and comfort plans. But, they are all basically the same thing. Most of them omit the word "contract" but that is what they are.
These contracts have two main purposes. First, for the hvac dealer, they provide income during the slow times. In the hvac service industry, business slows down in the more mild months such as Fall and Spring. During these times, the dealer still has the same business expenses but usually less income. Therefore, by offering service contracts, they can increase their income during the slow periods. The other purpose is to ensure that preventive maintenance is performed on the equipment. A clean hvac unit has fewer repair calls than one that is not maintained. Manufacturers require a minimum amount of service to their systems. This is to ensure that the parts last as long as possible which saves them money. Also, a clean hvac unit operates more efficiently and saves you money on your utility bills. Hvac service agreements usually start with a basic plan. This usually includes an ac unit checkup and a furnace checkup. The next level of coverage usually includes the checkups, no charge for repair parts, and priority service. Normally, the highest level of contract includes the checkups, no charge emergency service, and priority service. As the plan level goes up the price goes up. The basic plans normally cost about $200 and the highest level can be $300 to $500 PER YEAR. So how do you decide? First, you have to decide how much of the routine maintenance you are willing to perform. If you are even a basic do-it-yourselfer, you can do the recommended maintenance. Next, you need to look at your expected repair costs. Is the unit still covered by factory warranty? If it is, then there is no need to purchase a contract that covers repair parts. Those costs would already be covered. Is the unit old and no longer under warranty? Have you had a lot of repair bills in the past? If you answer yes to both of those questions, then ask yourself how much you can spend. Consider this, if your unit is that old, it might make more sense to replace it. In this case, you would probably pay $300-$500 per year for the contract. In just a few years, you will have spent enough to buy a new unit.
By examining these things, you will be informed and make better decisions. This will keep some of your hard earned money in your pocket. And your equipment will still receive adequate care. RETURN FROM HVAC SERVICE AGREEMENTS TO HOME |