Furnace efficiency is a huge concern for a homeowner who is just trying to make ends meet. Trying to heat a home is one of the biggest costs that a homeowner has to contend with, as the furnace is one of the most expensive appliances to operate. Because older furnaces are notably less expensive than newer furnaces, the cost of running an older furnace is higher than the cost of a new furnace. It can be worth the cost to replace your furnace as long as you can save money on your financing costs.
What Are the Costs of the Financing?
You can finance a new HVAC system for as little as $100 a month, and financing just a furnace can be less expensive than that. Still, if money is already tight and your financing exceeds the amount you save by operating a newer, more efficient furnace, then buying a new furnace is not the best idea. Before you buy a new furnace, you need to run the numbers and make sure you will in fact save money.
How to Make Sure Buying a New Furnace Makes Sense Financially
The first step in making sure the purchase of a new furnace makes sense is to look at your bills. Let's say, you are spending $400 a month on your heating bills. If you have an older furnace that is only 55% efficient, this means that you are simply wasting $220 a month. By switching to a newer furnace with 95% efficiency, you could save $200 a month.
This is a lot of money you can save. If you spend $100 a month to finance your new furnace—remember this would be at the high end for a new furnace—you will still save $100 a month. Because the newer furnace will more than pay for the financing cost, buying a new furnace makes sense.
If you feel stuck with high monthly costs for heating your home, you might think that there is nothing you can do to get your costs down. When a new furnace can cost as much as $14,000, you might think that there is no way you can afford a new furnace. If you take the time to run the numbers, you might just find that a new furnace is more affordable than you think it is. Rather than try to scrimp and save to come up with the money to pay for an inefficient furnace, you should consider saving money by financing a new furnace and avoiding costly furnace repair.