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How to get a free high efficiency furnace

30 April 2010 4,366 views One Comment
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Believe it or not, there are numerous ways to actually get your old, inefficient furnace replaced for free, or at least at very little cost. And we’re talking about quality, Lennox furnaces, Rheem, Carrier, etc.

Basically, you take advantage of the numerous credits and rebates that are floating out there right now. During the down time (the warmer months, or months just coming out of the cold season right up to the end of summer) a lot of heating contracting companies and the furnace manufacturers are int he middle of a down time. There isn’t a lot of business coming in when the weather is nicer and there is no need for a warm air furnace. So, to help drum up business, manufacturers will often offer rebates to the contractors, who thus offer the rebates to you, the customer.

Contractors will offer their customers the rebates from the manufacturer on a new furnace purchase and installation. Let’s assume that a high efficiency furnace runs you $5000, including installation. Let’s further assume that since these are last years models, they have to be cleared out for the newer model of furnace. So the manufacturer is offering a $2000 rebate on the furnaces. That means the cost to you is $3000.

If you get a high efficiency furnace (>90% AFUE) you’ll probably qualify for a tax credit / rebate. Take $1500 more off that $3000 and now we’re at $1500. Sign a capital improvement certificate with the contractor and you don’t pay tax on the unit or labor (if your state/locality offers it).

If the furnace uses a local utility, such as natural gas, the utility company typically also offers rebates between $500 and $1000 if you install a new high efficiency appliance. Let’s assume we get the full amount, $1000. So far, we’re left with $500.

That’s where the contractor comes in. He already gets a break from the furnace company, and has nothing to lose if you get a credit from the local energy company or the government. So, in a competitive market during a down time, to win your business, he may offer you a discount or rebate of his own. This typically covers the rest of the cost of the furnace. It costs his next to nothing to do, because again, he still pockets more than $2500, assuming the cost of the furnace to him is $2500. The rest of the money goes back into your pocket in the form of rebate checks and tax credits. So everybody wins. Which is why contractors are usually more than happy to go the extra mile for you and give you that last bit of discount.

Enjoy your new High Efficiency Furnace!

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