The True Cost of Owning a Furnace

When we buy anything, there is what you pay for it and then there are the other costs associated with owning it over the life of the item. We call this the true cost of ownership.

On a small scale, you can compare this concept to buying a puppy. Initially, you might pay a couple of hundred dollars, but the true cost of owning that puppy is much higher: vaccinations, health care, food, treats, a bed, toys, dental care, boarding or pet sitting, and (if you’re my dog) pet sweaters. Over the life of the dog, it ends up being a lot more than what you thought you were paying for the dog.

On a larger scale, it’s like buying a car. Many of us start by thinking about payments and how much we can afford to pay each month. We don’t usually think about the other costs associated with owning a car: the true cost. To estimate the true cost, you have to consider insurance, registration, gas, tires, maintenance, repairs, accessories, carwashes, etc. These are costs you should probably factor in if you want to figure out which car you can truly afford.

You may be asking yourself what, if anything, this has to do with buying a furnace. And the answer is that it’s the same thing: you have the price to get a new furnace and the cost associated with owning and operating that furnace. Our goal in writing this article is to give you the knowledge you need to make an informed decision that is best for you and your situation.

CHOOSING A FURNACE:

The 2 main things to consider when choosing the furnace that is right for your home is the size and efficiency. Most of us don’t have the technical knowledge it takes to figure that out. This is why we call an HVAC contractor to come and give us a “bid” to replace our furnace. After he’s taken measurements of your home, how many occupants are living there, how many windows and doors you have, anticipated usage, etc., he should be able to give you a price -- and this is as far as most people go when choosing which furnace they want.

This method will show you how much you’re going to pay for a new furnace but if you like to know which furnace is going to cost you less, over its life, to own -- here are some often overlooked costs to consider:

1. OPERATING COSTS

One of the biggest expenses of owning a furnace are the operating costs; therefore, this is one of the biggest considerations when estimating the true costs of owning a furnace. Another way of thinking about operating costs is determining the efficiency of your unit.

Efficiency is the measurement that tells you how well your system can convert a unit of energy into heat. Efficiency is measured as a percentage, is a universal measurement, and should be consistent across brands. Based on the efficiency of the equipment, gas rates, and how many cold days you can expect in your area, you should be able to estimate how much it would cost to operate that furnace. Not all technicians are trained on how to make these calculations, so if you ask for this information from the person you’re getting a quote from and they seem like they don’t know how to calculate it, you may want to get a second opinion.

2. REPAIRS

Unfortunately, furnaces don’t last forever. However, when they do break, it is not usually to the point that they can’t be repaired. So, it’s important to anticipate repair costs associated with owning your furnace. Thankfully, the repairs don’t usually come until years after the furnace is installed but when calculating the true cost of ownership, this is a consideration. And, there is a general number we can use. Over the life of the system, you average about $250 a year in repairs. The average lifespan of a furnace is around 10 years so as you see this is a real expense that adds to the cost of owning your furnace.

When choosing a furnace, ask the company selling it to you about their warranties. This can help eliminate some of those repair costs, lowering the true cost of owning the furnace they sell you. In the industry, it’s fairly standard to expect a 1-year parts and labor warranty from the company installing the furnace and a limited 10-year parts warranty from the manufacturer. There are companies out there that offer longer warranties that cover labor so keep that in mind as well.

In the end, your most important resource is information. Beyond the upfront cost of a furnace, what are the true costs? Even if it means paying a little more initially, sometimes that can save you much, much more in the long run in operating costs, maintenance, and warranty issues.

3. MAINTENANCE

Maintenance costs include what you’ll pay for regular tune-ups as well as how much you’ll spend on repairs as your furnace ages. So, how well the unit is maintained early on will affect the cost later. Additionally, if you started with a low-quality unit, or one that wasn’t measured properly for your home, maintenance costs will increase sooner and will be much costlier overall.

Keep in mind that maintenance cannot change the efficiency your unit was engineered for. It can only help ensure that your unit will continue to perform at its intended efficiency. However, regular tune-ups and maintenance can clean your system out and help it perform better and for longer than an unmaintained system.

In all, these are important considerations to keep in mind when factoring out the cost of furnace ownership. If you have additional questions, talk to a trusted HVAC technician. Your most important ally is research and knowing your options.

If you are in the market for a new furnace and want to figure out which furnace has the true lowest cost, an HVAC professional from Any Hour Services can help you get the information you need.