Do I get a new furnace and A/C unit or fix the ones I have

[Moranis]

So my furnace keeps kicking off.  It can be re-set fairly easily, but I actually have to be there (so if I go on vacation it could cause problems).  Sometimes it lasts a month and sometimes a few days without kicking out and there is no rhyme or reason to it.  I had someone out and they believe a new board will fix the problem (though there are no guarantees, it does seem like the board is the problem though).  That will cost in the range of 300-400.  My a/c unit has a freon leak.  I have no idea how much that will cost to fix, and if I add freon every two years or so there are no issues.  The units are 18ish years old so they aren't the most efficient things in the world.  I figure it will cost less than a grand to fix them both.

If I replace them I would go with good energy star efficient units from Trane, but not the top of the line ones.  I've had two estimates the cheapest one of those was 8200 for everything (including all installation) and I could get 5 years with no interest.  I also would probably save in the 50-75 dollar range per month on energy costs and would likely end up with a more comfortable house.

I have no immediate plans to move and I don't think I will for at least 5 years.  And while I don't have a lot of disposable income, I could reasonably go the replacement route without a lot of financial strain (especially with 5 years no interest).  So the question is do I fix what I have or spend the money and get the new units? 

[BballTim]

  Not the advice you're looking for, but if you replace them check and see if you can do some kind of green deduction on your taxes. That would help defray the cost of the new units.

[bdm860]

I'm not now, nor have I ever been a homeowner (so take everything I say with a grain of salt), but when I'm faced with these types of decisions, I try to break the costs down a few ways, and I often find it helps.

Here's how I try to break things down.

To just fix the furnace and AC unit now we'll cost $1000.  You estimated $50-$75 a month savings from new units, so that's either $3000 ($50 * 60 months) or $4,500 ($75 * 60 months) extra costs over 5 years with the old units.  While I'm not a home owner and really don't know about this stuff, do you really think that's the last repairs over the next 5 years it needs?  From my experience driving beat up cars, ya it will be $1000 to fix it now, but it won't be long before something else breaks down adding more costs.

So it's all about which side of the equation looks more attractive to you.  Would you rather spend:
$1,000 + $4,500 + unknown future repair costs + time/energy dealing with it

or

$8,200 + more comfort + less hassle. 

Another way I look at it (especially if you end up never moving or staying in your house for a long time) @$75 per month savings, the units pay for themselves in a little over 9 years.  @$50 savings, the units pay for themselves in a little over 13 ½ years.

Also in 5+ years if you did want to move, while these new units probably wouldn’t increase your home’s value, I bet those old units would decrease the value.  So there’s that to think about too. (Although maybe not, units from the 90's don't seem that old).

Another way to look at it, if you wanted to pay the new units off in 5 years, with no interest, it would be $137 month, but factor in $75 monthly energy savings, you’re down to only having to pay $62 more per month (or $87 a month with $50 savings).  Spread the $1,000 you’d have to spend to fix your existing units into the payments as well over 5 years, and that takes another $17 off your bill.   So you could be down to just having to pay between $45-$70 more per month over the next 5 years.  Would you pay that a month for more comfort, less hassle, and I assume some kind of warranty?  Or would you rather have a few extra dollars, but more hassle, less comfort, and no guarantee something else doesn't break too?

Those are my thoughts, but you probably already did that math yourself, so ya I was probably no help lol.  Me, I'm a cheapskate though. I'd just deal with the old units, not even fix them, and not run the heat or AC at all, and just save all my money 

[TripleOT]

Check with your local utility company and see if they're offering rebates/incentives if you convert to energy efficient equipment.  A big rebate or break on new equipment could tilt the numbers in favor of going with new. 

[Moranis]

Check with your local utility company and see if they're offering rebates/incentives if you convert to energy efficient equipment.  A big rebate or break on new equipment could tilt the numbers in favor of going with new.

The estimates include the rebate from the utility company and there are no longer tax rebates for the new units.

[vwoodruff]

I'm a solar professional and specialize in energy efficiency as well. Depending upon where you live, you may want to look at replacing both units with a mini-split heat pump (or a few, depending upon the size of your house). Companies like Fujitsu have made some major strides with the technology. The units provide heating in the winter, cooling in the summer.

Before you think about replacing heating or cooling equipment, you should make sure your home is energy efficient. A blower door test is extremely important to identify area of heat (or cooling) loss and making sure you basement and attic are insulated properly goes a long way.

The best place to find out what incentives might exist for your locale is www.dsireusa.org.

[Moranis]

I'm a solar professional and specialize in energy efficiency as well. Depending upon where you live, you may want to look at replacing both units with a mini-split heat pump (or a few, depending upon the size of your house). Companies like Fujitsu have made some major strides with the technology. The units provide heating in the winter, cooling in the summer.

Before you think about replacing heating or cooling equipment, you should make sure your home is energy efficient. A blower door test is extremely important to identify area of heat (or cooling) loss and making sure you basement and attic are insulated properly goes a long way.

The best place to find out what incentives might exist for your locale is www.dsireusa.org.

I looked at heat pumps and most people said that they work only ok in the area and the companies that install both heat pumps and traditional units, prefer the traditional units from a cost and efficiency standpoint. 

I have not had a blower test yet, but that was part of the installation just to make sure everything was good.  The guys coming out to do the estimates didn't want to incur that expense until I signed on for their work.  We have new windows and pretty solid insulation in the attic, so as long as the ducts check out we should be ok as far as efficiency goes.

I checked out the link and it appears the only rebate I can qualify for is the one from the energy company which I was aware of.  But that was certainly helpful and I very much appreciated it.

[Chris]

Not sure if they have it in your area, but in addition to rebates, Mass Save offers no interest loans if you are getting a new heating system (not sure about A/C).  Probably worth looking into if there are any programs like that. 

[Moranis]

Not sure if they have it in your area, but in addition to rebates, Mass Save offers no interest loans if you are getting a new heating system (not sure about A/C).  Probably worth looking into if there are any programs like that.

The manufacturer, Trane, has a deal with Wells Fargo and a lot of the installers get 5 year loans with no interest (if paid in full by the expiration).  Makes paying it off a lot easier when you aren't worried about interest.

[More Banners]

Usually when faced with these sort of situations, which I often do...major systems nearing the end of their useful life, but are a major replacement...and I end up going with the "screw it, I'm getting a new one" most of the time when I can and rarely regret it.

Except there always seems to be something else that needs "new" when I don't even have the $$ to fix.

But it sounds like the system has done it's main duty, and if you can, replace the thing.

But take a quick mental inventory of what else might need "new" soon as well before going in for that kind of cash.

From a guy that bought a house that needed everything...