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October 19th, 2020
We're used to thinking about cost as a one-time thing. You buy it, you own it, and that's it.
Furnaces are an exception. It's not that they don't have an upfront price tag — your initial investment will be substantial. Rather, it's that cost is something that needs to be continually calculated.
It's also important to factor in things like the comfort and health of your home and family.
We're going to be honest about cost in this article, but we're also going to ask you to think about cost in a few different ways. We think this is a more complete picture and will allow you to make a better decision for your next HVAC project
Reconceptualizing Cost - A Comparison to Cars
We don't think about our furnace that often. But I'm guessing you think about your car a lot more. So, let's talk about cars for a second.
When you buy a car, there's the "big" upfront cost, but it's far from the only one.
Other costs then include gasoline, regular tune-ups and maintenance, filter changes, tire rotations, and things like car washes.
Further down the line, you're probably going to have to make repairs to the vehicle.
What goes into the true cost of a car?
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1. Initial cost
2. Miles per gallon (mpg)
3. Reliability of parts
4. Cost of labor for maintenance
5. Expertise of mechanics who perform repairs
So maybe you're 10 years into ownership and have to buy new tires. Do you go with the cheaper set, or the pricier set that may last twice as long? The math still favors the cheaper set in that scenario. But what if I told you that the pricier set is safer? What's that worth to you?
The same goes for the car itself. Take these two:
1. Vehicle One: lower price, lower fuel efficiency, extremely quiet interior, leather seats
2. Vehicle Two: higher price, better fuel efficiency, moderately quiet interior, no leather seats
Is there a clear "best" option there? Probably not. Or rather, there may be a best answer for you, but it will be different for someone else.
Alright, enough car talk. It's time to get into your new furnace. But hopefully this exercise was able to show you that the concept of cost isn't always obvious.
Thinking Through the Cost of a Home Furnace
Let's assume a typical furnace purchase, including labor and permit fees. There are less expensive furnaces and there are more expensive ones, but this gives us a good baseline for how to think about it.
Now think about your monthly heating costs during the months you run your system. If your current furnace is older and not terribly efficient, this is likely a meaningful chunk of your monthly bills over the heating season.
Assuming your current system is older and not terribly efficient, a new furnace is almost certainly going to be a big upgrade, meaning your monthly heating costs should drop, potentially substantially.
If your heating costs drop meaningfully every month during the heating season, that adds up to real annual savings. Over enough years of use, those savings can add up to "making your money back" on the furnace itself, which any good furnace system should be able to give you over its lifespan.
But we're not done.
One, those years are also providing you with much greater comfort. Much like a quieter car or leather seats, it's harder to put a price on these things. Most Americans spend a lot more time in their homes than they do in their car, so you can be guaranteed of enjoying this comfort for at least 10–12 hours every day.
Two, we haven't yet considered the cost of waiting. Let's say you push off purchasing a new furnace for a year. This might be the right decision for you for budgetary reasons. But it's also costing you something.
That extra year means another year of paying inflated heating costs on an inefficient system. And there's a good chance the furnace itself will cost more a year from now than it does today. Prolonging the decision has a real cost — even if it's not always obvious upfront.
These dynamics reflect the realities many homeowners face.
There are times when it's the right financial decision to wait to purchase a new furnace. We'll talk about those below. But if you know that the decision is inevitable, you're generally better off making the choice sooner rather than later
High-Efficiency Furnaces
If you hear about a furnace that is an "80% furnace," it refers to the fuel efficiency. Basically, it's like miles per gallon. In an 80% furnace, 80% of the fuel you use is directly heating your home.
High-efficiency furnaces can be well over 90% efficiency. The best ones approach 98%. Of course, these are more expensive initially.
This is where general comparisons start to break down a little bit, because there are too many variables to consider. This is also talking with a trusted HVAC partner can help, because they can look at your current furnace (which will likely be far less efficient than modern options) and help you estimate your savings accurately.
Regardless, these high-efficiency options present another short-term vs. long-term equation to take into consideration.
Questions to Ask Yourself
When is the right time to buy, and why? To answer that, you're going to have to reflect on your current situation. We can't provide a single answer that will work for everyone, but we can give you some questions that will help guide you to the best answer.
1. How long do I expect to live in this home? If the answer is 1–5 years, you won't see the long-term cost benefits of a new furnace. If it's 5–20+ years, though, you can be assured of more comprehensive savings.
2. How much do I run my furnace? If you're only running the system for a couple months out of the year, the math will look very different for you. Conversely, if you're in a cold climate and are using it for 7–8 months of the year, a good furnace is an even bigger necessity.
3. What are my energy bills like compared to the average? Some searching should reveal what you can expect to pay in utilities in your area, and you can work backward from there to estimate your personal savings.
4. How efficient (or inefficient) is my current furnace? The difference between modern and older equipment can't be overstated. In some cases, the efficiency gap is substantial, which means the case for a new system gets even stronger.
5. What is my current budget for home improvements? Will waiting make things any easier next year? Continuing to run an inefficient system, combined with the likelihood that equipment costs rise over time, means waiting rarely comes free. Knowing your current financial situation — and the extra burden that waiting can cause, is important to assessing this investment.
RELATED: The Cost of Waiting to Replace Your Air Conditioner or Furnace
There are undoubtedly other questions, but these can get you started. Importantly, a trusted HVAC partner can help you with any of them. We guide thousands of homeowners through this process, so we can let you know what to expect in terms of costs, both short-term and long-term.
The Hidden Costs and Benefits
The only hidden costs to a furnace installation are if your installer does a poor job. You might not be able to tell at first, but it can cause efficiency problems down the line and shorten the lifespan of your system.
RELATED: The HVAC Contractor Checklist
Assuming your installation is handled properly, though, the only other "hidden" elements are benefits to you.
We talked about a few of them earlier. Like leather seats and built-in seat warmers in your car, the bells & whistles on a new HVAC system can bring things like smart-home technology, new options on your thermostat that give you more control over temperature and humidity, and quieter operation.
Another benefit is to your health. Rusted parts, bad filtration, and other small problems can add up, and the end result is less breathable air.
The other potential benefit is to your air conditioning. No, really, we mean it! A new furnace means a new blower motor, which also moves the air through your home on the air conditioning side. If the blower motor is more powerful or has more settings, it generally means good things for airflow on the cooling side as well.
Making the Right Decision
There aren't many investments you'll make in your life that will be more expensive than new HVAC equipment. A home, a car, maybe things like a new roof or windows, or a particularly lavish vacation are the only items that will routinely come in higher.
It's important to make a choice that you feel good about. Waiting can be the right choice for many homeowners, just as purchasing now can be the right choice for many. The important part is that it's a fully informed decision.
That's our job, both with articles like these and when we're in homes across Central Ohio, helping customers like you make the right call for their heating and cooling needs.
RELATED: The Complete Guide to Home Furnaces
When you're ready to talk and make a decision, check our service area below and schedule an estimate, or give us a call. We're here to help make your day better.
