In Ontario, HVAC product rentals are booming. While they might sound appealing at first, these contracts often don’t favour homeowners. Here’s what you need to know:
1. The Hidden Costs of HVAC Rentals
- Many homeowners think they’re getting a bargain with no initial costs. But within six months, they realize they’re tied to a long-term monthly contract.
- While these rental agreements might appear cost-effective initially, they often end up being much pricier over time.
2. Your Rights and Liabilities
- Consumer Protection Ontario highlights a 10-day cooling-off period for contract cancellation without any charges. If you’ve recently signed, send an email within 10 days to the service provider. It’s essential to have this written proof.
- Along with this contract, you might unknowingly consent to a lien on your property. This could obstruct your chances of refinancing or remortgaging your home. A simple stop payment doesn’t free you from the commitment. Breaching the contract can affect your credit score.
3. Misleading Claims
- Some sales representatives claim that rental properties can avail tax credits for these products. However, no concrete evidence supports this statement.
4. A Real-World Example
- Consider a variable-speed gas furnace and air conditioner rental deal from a prominent company. The upfront price is $9,228 + HST, which seems steep. Shockingly, the total agreement amount is a whopping $29,907.06!
- Despite these high costs, there’s no warranty if you buy out the contract.
Read the terms before you sign a rental agreement
5. How City Home Comfort Can Help
- At City Home Comfort, we prioritize enlightening you. We believe in transparency and ensuring you understand your choices.
- Reach out to us for a no-obligation virtual estimate.
6. Understanding Payment Options
- Paid in Full: This is the optimal choice. Pay for the entire HVAC system upfront with a Visa, Mastercard, E Transfer, or Cheque. You’ll also get a comprehensive warranty, ensuring the best value.
- Finance: Opt for a loan to finance your HVAC system. You’ll need to repay the principal amount, along with interest and any associated fees, over a stipulated period. However, you can repay the principal earlier without any penalties.
- Rental: This should be your last resort. With this, you’ll be on a monthly payment plan for a fixed duration. For instance, after two years of payments, your buyout cost would be 96% of the retail value, and 88% after three years, which is equivalent to a staggering 90% APR.
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